CLEVELAND, Oct. 7, 2011 /PRNewswire via COMTEX/ --
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) announced today that a subsidiary, Forest City Military Communities, and the U.S. Air Force, through the Air Force Center for Engineering and the Environment, have signed a 50-year housing privatization agreement for the development and management of 2,185 family homes at four U.S. Air Force bases in the Southeast, bringing Forest City's military housing portfolio to more than 14,000 homes.
As a part of the agreement and closing, Forest City will be managing an initial development period, valued at $308.1 million, for the construction of new family housing and community amenities. Forest City will also earn an on-going fee as a part of the Company's 50-year property management responsibility.
The bases, collectively known as the Southern Group, are Joint Base Charleston in S.C.; Shaw Air Force Base in Sumter, S.C.; Keesler Air Force Base in Biloxi, Miss.; and Arnold Air Force Base in Tullahoma, Tenn. Construction at all four bases is anticipated to begin by early November and to last between 14 to 49 months, depending upon the base.
"Forest City is excited and proud to take the leadership role in the new construction and management of the Southern Group communities," said Thomas Henneberry, president of Forest City Military Communities. "We believe the high-quality, redeveloped neighborhoods designed for this project will significantly enhance the quality of life for the families at these bases for years to come."
"Providing first-rate housing and welcoming, comfortable communities for our U.S. service members and their families is both a calling and an honor for our associates," said David LaRue, president and chief executive officer, Forest City Enterprises, Inc. "We thank the U.S. Air Force for this opportunity as we begin developing and managing these communities."
Forest City has assumed all day-to-day property management duties and established an on-site management team, including highly qualified service and maintenance technicians. The management team is also responsible for community-building resident activities and programs.
About Forest City Military Communities
In addition to the Southern Group Air Force bases, Forest City Military Communities has developed and manages military family housing projects at the U.S. Air Force Academy in Colorado Springs, Colo., as well as at several regional Naval installations in Hawaii, the Puget Sound region of Washington state, Illinois, Indiana and Tennessee. A wholly-owned subsidiary of Forest City Enterprises, Inc., Forest City Military Communities is now responsible for the development and management of over 14,100 military family homes located in eight states.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.7 billion in total assets. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit http://www.forestcity.net/.
Safe Harbor Language
Statements made in this news release that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The company's actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current lending and capital market conditions on its liquidity, ability to finance or refinance projects and repay its debt, the impact of the current economic environment on its ownership, development and management of its real estate portfolio, general real estate investment and development risks, vacancies in its properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of our insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of its publicly traded securities, inflation risks, litigation risks, as well as other risks listed from time to time in the company's SEC filings, including but not limited to, the company's annual and quarterly reports.
SOURCE Forest City Enterprises, Inc.