Forest City, QIC execute definitive agreements for regional mall portfolio
Forest City Realty Trust and QIC announced the execution of definitive agreements on 10 regional malls in which QIC will acquire Forest City's ownership interest. The sales of six of the 10 malls are expected to close by yearend as third-party consents are obtained. The remaining four malls will be transferred to QIC under a fixed-price option and are expected to close as Forest City secures replacement assets or other opportunities into which it will redeploy its ownership stake in those malls. The overall transaction values the 10 regional malls at approximately $3.175B, or $1.55B at Forest City's share. The first six malls represent $1.24B of value, approximately $667.5M at Forest City's share. Forest City provided the buyer $150M of seller financing for a period of up to 18 months from closing. Net proceeds for the first six malls, after transaction costs and seller financing, will be approximately $180M. The remaining four malls represent $1.93B of value, approximately $887M at Forest City's share. Forest City's overall share is substantially in line with the company's previous disclosures about the transaction.