YONKERS, NY — October 11, 2017 — Australian investment firm QIC has as of last week reached agreement with Cleveland-based Forest City Realty Trust to acquire Forest City’s ownership stake in 10 malls.
Forest City spokesman Jeff Linton advised that QIC owns a minority stake in nine of the malls, with the only exception being that situated in Colorado.
The transaction values the 10 malls at $3.18 billion, or $1.55 billion for Forest City’s share. The companies did not provide a breakdown of the individual malls.
According to QIC and Forest City, Westchester’s Ridge Hill in Yonkers, New York, is expected to close by year-end as third-party consent is obtained.
Forest City advised in a news release that the mall transactions and a separate deal will result in the firm exiting “from substantially all of the shopping center-based retail in its portfolio.” CEO David LaRue said that the moves allow the company to focus on urban residential, office and mixed-use assets.
The City of Yonkers had not previously divulged that Forest City Realty Trust had QIC as a minority or majority stakeholder in the Ridge Hill development.
At issue now is whether third-party consent will hinge on payment of the $3 million funds that were said to have been set aside for the building of a Fire House on the Ridge Hill property. Yonkers City Hall has issued no notice regarding the transaction noted herein or the ramifications that it may exact upon the City of Yonkers or if Forest City Realty Trust has complied with adherence to all its espoused and contractual responsibilities to the City of Yonkers. Specifically is the issue over whether the $3 million Fire House that was a stipulated requirement to to be built, and by which final approval was gained, was paid to the City of Yonkers as required by the claimed contractual agreement signed? Was payment made or not? Was the stipulation verbalized but not inculcated or appended into a legally contracted agreement as was stipulated? Had the signed legal contract somehow not included a designation for the $3 million Fire House? If not, why not? If yes, when did Yonkers City Hall receive the funds? What did Yonkers do with the funds? Were they allocated for purposes not intended? How were the funds allocated and for what purpose? If the funds were not received, will the missing $3 million dollars be gained by legal pursuit or will it be revealed that the $3 million was in fact paid to the City of Yonkers after all. If it was paid to the City of Yonkers when was payment received, and where and what had been done with those funds? Were the funds spent on items for which they were not intended?
Will the indoor parking facilities at Ridge Hill that are operated by Al Pirro, Esq., owning a 95 percent share, and Nick Spano, a 5 percent share, have any bearing on the sale of the property to QIC?