CLEVELAND, Jan. 8, 2014 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it recently completed several asset dispositions before the end of 2013.
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In Westminster, Colorado, the company closed the sale of Orchard Town Center, a 1,043,000-square-foot, open-air regional retail center, to Vestar Orchard Town Center, LLC, for $123.5 million. The sale generated net proceeds to Forest City of approximately $120 million.
"We continue to execute on our strategies of focusing our retail mall portfolio around mature, high-productivity centers, such as the eight malls in our strategic capital partnership with QIC, and using proceeds from asset dispositions to reduce debt," said David J. LaRue, Forest City president and chief executive officer. "Orchard Town Center, which opened in 2008, is well positioned in a growing market, with opportunity to improve sales and net operating income going forward. At this time, however, we believe the center is best positioned to achieve that future growth as part of another portfolio."
Forest City was represented by Cushman & Wakefield in the transaction.
The company also completed three smaller dispositions of non-core assets before the end of the year, generating total cash proceeds of approximately $13 million.
In total for 2013, the company completed 10 dispositions, resulting in total cash proceeds of approximately $250 million. Including proceeds from these 10 dispositions, as well as from Forest City's eight-mall joint venture with Australian investor QIC, the company generated total 2013 liquidity of approximately $600 million. The majority of this liquidity was used to reduce both corporate and property-level debt as part of the company's strategic deleveraging efforts, as well as to invest in its mature portfolio and selectively activate entitled development opportunities in core markets.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $9.3 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 www.forestcity.net.
SOURCE Forest City Enterprises, Inc.
Robert O'Brien, Executive Vice President - Chief Financial Officer, 216-621-6060, Jeff Linton, Senior Vice President - Corporate Communication, 216-621-6060