Forest City, QIC to form JV for portfolio of eight regional retail malls

Forest City Enterprises, and QIC, an institutional investment managers in Australia, announced the signing of an agreement to form joint ventures to recapitalize and invest in a portfolio of eight of Forest City's regional retail malls. The transaction values the eight properties at a total of $2.05B... Sales at the eight malls currently average approximately $500 per square foot, on a rolling 12-month basis. Upon closing, Forest City expects to raise cash liquidity of approximately $330M, after transaction costs. Closing of the joint ventures is expected to occur before the end of the company's Q3. Under the agreement, Forest City will contribute its current ownership interest in each of the properties to the joint venture and QIC will acquire 49% of those interests for cash. Ownership of the individual properties, at closing, will vary based on existing partnerships currently in place at three of the malls. Forest City will be the managing member of the individual joint ventures and will continue to be responsible for leasing, operations, marketing, financing, development services and asset management of the properties.