QIC And Forest City Near Completion Of $4B Retail Portfolio Trade-Off

mall, shopping center, shoppers

Sydney-based QIC Global Real Estate and Cleveland's Forest City Realty Trust are nearing completion of a deal announced in February to transfer control of a $4B retail portfolio from Forest City to QIC.

Currently jointly owned, the portfolio includes 11 regional malls spread from West Virginia to California, and under the deal’s terms QIC will buy the entirety of Forest’s stake in the portfolio, CoStar reports. Forest City CEO and president David LaRue said his company will sell its interest to QIC in seven of the 11 properties. As for the remaining four, Forest will exchange its interest for stakes in core office or apartment assets.

Forest City said the deal’s pricing and structure have not changed since February, and said the pending transaction reflects an average 5% cap rate on the portfolio’s 2016 $110M net operating income.

CORRECTION, NOV. 13, 10:40 A.M. ET: A previous version of this story incorrectly listed the headquarters of Forest City Realty Trust. The firm is based in Cleveland, Ohio. The story has been updated.  

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