Brookfield Has Entered Discussions To Buy Forest City

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Brookfield Asset Management is in the midst of talks to buy real estate REIT Forest City Realty Trust, according to Bloomberg.

Details regarding the most recent discussions with Brookfield have been kept quiet, as they are said to be ongoing, with alternate bidders potentially emerging to compete for Forest City.

News of the potential acquisition closely follows Forest City’s potential merger with Equity Commonwealth, which could have resulted in a REIT worth more than $10B. Had it moved forward, it would have been one of the largest mergers of 2017.

Forest City has been engaged in a sell-off of some of its real estate holdings, most recently selling 25% of its 30% stake in its Brooklyn megaproject, Pacific Park, to its joint venture partner, Chinese firm Greenland Holdings. Its New York City CEO, MaryAnne Gilmartin, who led the development of the Barclays Center and Pacific Park, since it was originally called Atlantic Yards, left the company Jan. 1 to launch her own firm, bringing much of the New York leadership team with her.

The discussions also come on the heels of Brookfield’s failed attempt to acquire GGP after the asking price was deemed to be too low. On Wednesday morning, Forest City REIT shares increased 3.8% to $23.95. Its current market value is estimated to be $6.4B, Bloomberg reports.

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