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FCRC and Onexim Group
Announce Partnership for Brooklyn

September 23, 2009

Brooklyn, U.S.A. and MOSCOW —Forest City Ratner Companies (“FCRC”), Nets Sports and Entertainment (“NSE”) and Onexim Group announced today that they have signed a letter of intent to create a strategic partnership for the development of the Atlantic Yards Project, a 22-acre residential and commercial real estate project in Brooklyn and the Barclays Center, the future home for the NBA's Nets.  

This partnership will ensure the successful completion of a world-class entertainment venue in Brooklyn, the relocation of the NBA Nets basketball team and the economic and housing benefits of the Atlantic Yards Project.

In accordance with the agreement, entities to be formed by Onexim Group will invest $200 million and make certain contingent funding commitments to acquire 45% of the arena project and 80% of the NBA team, and the right to purchase up to 20% of the Atlantic Yards Development Company, which will develop the non-arena real estate. 

Bruce Ratner, the Chairman and CEO of FCRC, said, “Mikhail and Onexim will be great partners for this project.  I am thrilled that smart global investors appreciate the exciting economic potential of Brooklyn. We are one step closer to achieving our goals of creating much needed jobs and economic development for Brooklyn and the city.”

Mikhail Prokhorov, President of Onexim Group, said “We are delighted to join in this exciting project and to participate in the landmark development of global sports in this entertainment arena in the heart of New York City.  I have a long-standing passion for basketball and pursuing interests that forward the development of the sport in Russia.  I look forward to becoming a member of the NBA and working with Bruce and his talented team to bring the Nets to Brooklyn.” 

NBA Commissioner David Stern said, "We are looking forward to the Nets' move to a state-of-the-art facility in Brooklyn, with its rich sports heritage.  Interest in basketball and the NBA is growing rapidly on a global basis and we are especially encouraged by Mr. Prokhorov's commitment to the Nets and the opportunity it presents to continue the growth of basketball in Russia."

The transaction is expected to close by the first quarter of next year upon certain conditions being fulfilled, including approval by the NBA's Board of Governors.  The Raine Group and Goldman, Sachs & Co. advised FCRC and NSE. Simpson Thacher & Bartlett LLP acted as legal counsel to FCRC and NSE. Hogan & Hartson advised Onexim Group.

About Onexim Group
Onexim Group, one of the leading Russian private investment funds, was founded in 2007 by Mikhail Prokhorov and has a diversified portfolio of investments in the metals and mining sector, financial services, energy and nanotechnology, real estate and other industries. Onexim Group and Mr. Prokhorov also support many sports, cultural and charitable programs in the communities in which we live and work.

About FCRC
Forest City Ratner Companies (FCRC), a wholly owned subsidiary of Forest City Enterprises, owns and operates 30 properties in the New York metropolitan area. Forest City Enterprises, Inc., an $11.7-billion NYSE-listed national real estate company, is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.

Safe Harbor Language
Statements made in this news release that state Forest City Enterprises’, FCRC’s or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current market conditions on our liquidity, ability to finance or refinance projects and repay our debt, general real estate investment and development risks, vacancies in our properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, environmental liabilities, conflicts of interest, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, volatility in the market price of our publicly traded securities, litigation risks, as well as other risks listed from time to time in the Forest City Enterprises’ SEC filings, including but not limited to, its annual and quarterly reports.

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