Forest City, QIC complete joint ventures for portfolio of retail malls

    Forest City, QIC complete joint ventures for portfolio of retail malls

- JVs expected to generate approximately $350 million in liquidity for Forest

PR Newswire

CLEVELAND, Sept. 11, 2013

CLEVELAND, Sept. 11, 2013 /PRNewswire/ -- Forest City Enterprises, Inc.,
(NYSE: FCEA and FCEB) today announced the completion and partial closing of
its previously announced joint ventures with QIC, one of the largest
institutional investment managers in Australia, to recapitalize and invest in
a portfolio of eight of Forest City's regional retail malls. Seven of the
individual joint ventures closed on September 10 and the eighth is expected to
close by the end of September.

(Logo: )

The overalltransaction values the portfolio at a total of $2.05 billion,
representing a cap rate of approximately 5.75 percent on forecasted 2013 net
operating income. Forest City expects to generate total liquidity of
approximately $350 million, after transaction costs. Sales at the eight malls
currently average approximately $500 per square foot, on a rolling 12-month

"This strategic capital partnership with QIC is our largest such initiative to
date, and an exciting opportunity to work with an experienced global investor
to enhance these already strong retail centers," said David J. LaRue, Forest
City president and chief executive officer. "We look forward to building a
mutually beneficial, long-term relationship that creates value for both of our

Forest City plans to use a majority of the liquidity from the transaction to
reduce debt, but also expects to use a portion to fund expansion, renovation
and other reinvestment initiatives at a number of the malls.

The eight properties being joint ventured are Victoria Gardens in Rancho
Cucamonga, California, Charleston Town Center in Charleston, West Virginia,
Mall at Robinson near Pittsburgh, Pennsylvania, Promenade in Temecula,
California, Galleria at Sunset in Henderson, Nevada, Antelope Valley Mall in
Palmdale, California, Short Pump Town Center in Richmond, Virginia, and South
Bay Galleria in Redondo Beach, California.

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 

Safe Harbor Language
Statements made in this news release that state the company's or its
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, the strategic decision to reposition or divest
portions of the company's land business, 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 its
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, cybersecurity risks and cyber incidents, 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.

Contact: AT THE COMPANY: Robert O'Brien, Executive Vice President - Chief
Financial Officer, 216-621-6060; Jeff Linton, Senior Vice President -
Corporate Communication, 216-621-6060
Press spacebar to pause and continue. Press esc to stop.