- Posted at 12:19, December 11, 2013
- By Russ Bleemer
A filing with the U.S. Securities and Exchange Commission reveals that the Forest City Ratner Cos., which has developed the Atlantic Yards project, the home of the Barclays Center arena, is a financial disaster.
The Wall Street Journal reports that the filing states that "the $500 million it has invested in the planned 16-tower project likely has a value of no more than half that amount."
The Journal's "Value of Atlantic Yards Cut Sharply," will appear in Wednesday's newspaper.
Forest City explained the bad news itself on Monday in a press release, posted at its website, HERE.
David LaRue, chief executive of Forest City Enterprises Inc., the Cleveland-based parent of Forest City Ratner, said in the Journal, "Clearly, we are disappointed."
The company announced that it planned to write-down $250 million to $350 million on the development, because of the higher costs it has incurred.
In October, Greenland Holdings Group, a big state-run China investment company, pumped in billions, buying a 70% stake in a project estimated to cost between $4 billion and $5 billion. The deal raised many questions.