Forest City Exploring Strategic Alternatives, Including Merger

Courtesy of VUW Studios
Pacific Park

Forest City Realty Trust is seeking strategic alternatives to increase shareholder value.

The Cleveland-based REIT, which has an estimated $8.2B in assets, is considering a potential merger or acquisition, Bloomberg reports. The REIT, best known for its Pacific Park project in Brooklyn, has been actively attempting to reduce its debt throughout the past few years. Last year it shopped out equity stakes for the Brooklyn development in an effort to recapitalize the project.

Forest City has been under pressure from activist investor Jonathan Litt, who wrote to shareholders in the spring encouraging Forest City to put itself up for sale because it would attract numerous bidders.

According to CoStar, investors reacted positively to the latest news with stock prices rising about 60 cents to $26.25 per share Monday, a new high for the year.

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