Janet Babin, Economic Development Reporter, WNYC News
Janet Babin is a reporter at WNYC covering economic development.
Additional information has been released about the pending joint venture between Atlantic Yards developer Forest City Enterprises and Shanghai-based Greenland Group and the development at Atlantic Yards.
In a government filing, Forest City revealed that Greenland will contribute $200 million dollars in exchange for its 70-percent share in the project. The company will then have to invest and share development risk in proportion to its respective ownership stake on the entire remaining project, according to the filing with the U.S. Securities and Exchange Commission.
The deal excludes the Barclays Center and the first residential building, known as B2.
Forest City said in the filing that total acquisition costs are expected to be about $1.3 billion dollars.
"Greenland's commitment to Atlantic Yards, including their initial capital contribution, the assumption of a 70 percent share of all future costs, as well as additional capital resources, will serve to accelerate vertical development going forward," said David J. LaRue, Forest City Enterprises president and chief executive officer.
The deal is still subject to regulatory approval from the U-S Committee on Foreign Investment and the Chinese government.
Last week, Forest City had to report that the fair market value of the project has declined by up to $350-million dollars.