ONEXIM Group and Forest City Ratner Companies announce the strategic partnership in implementation of a large development project in Brooklyn
23 September, Brooklyn, USA – Moscow, Russia: Forest City Ratner Companies (FCRC), Nets Sports and Entertainment (NSE) and ONEXIM Group have announced that they signed the Agreement of intent on establishing the strategic partnership in implementation of the Atlantic Yards development project in Brooklyn (New York, USA).
The Atlantic Yards development project assumes the construction of residential and non-residential real property in Brooklyn on the territory with the total area of 22 acres, as well as the construction of the Barclays Center – the future home arena of New Jersey Nets, the club of the National basketball association.
According to the signed agreement, ONEXIM Group shall invest US$ 200 million in exchange for the 45% share in the construction project of the Barclays Center, the 80% share in the capital of the New Jersey Nets basketball club, as well as the option for purchasing up to 20% in Atlantic Yards Development Company managing the construction of residential and non-residential real property under this project.
Mikhail Prokhorov, the President of ONEXIM Group, said: “We are happy to join this unique investment project under which a supermodern sports arena is supposed to be constructed in the very heart of New York. I've been a passionate basketball lover for a long time and try to assist the development of sports in Russia and the whole world. We are sure that participation of ONEXIM Group in this project not only will help to develop New Jersey Nets, but will also create further possibilities for the development of the world basketball. It is especially important for me that this project will give a new impulse to the development of the Russian basketball which will gain access to the most modern technologies in the area of sports management and work with young basketball talents”.
“Mikhail Prokhorov and ONEXIM will become ideal partners for us during implementation of this project, - underlined Bruce Ratner, the Chairman of the Board of Directors and General Director of FCRC. – We are happy that international investors have worthily appraised the economic potential of Brooklyn. Having concluded this agreement, we made a further step on the way to implementation of our goals – ensuring the economic blossoming of the whole city in the whole and Brooklyn in particular”.
As NBA commissioner David Stern said: “We welcome the coming relocation of the New Jersey Nets team to the unique state-of-the-art equipped arena in Brooklyn, to the area famous for its rich sports history. The interest to basketball and NBA is growing around the world, and we appreciate the aspiration of Mr. Prokhorov to promote the development of New Jersey Nets and those perspectives that will open to the further development of the Russian basketball”.
The closing of the deal is planned for the first quarter of the next year, after receipt of all the necessary approvals from regulating bodies, including NBA. The Raine Group è Goldman, Sachs & Co. act as consultants of FCRC and NSE. Hogan and Hartson act as consultants of ONEXIM Group.
On the ONEXIM Group
ONEXIM Group is one of the largest private investment funds in Russia, established in 2007, owning a diversified investments portfolio in the area of the metal mining industry and metallurgy, real property, media, energetics and nanotechnologies.
On FCRC
Forest City Ratner Companies is owned by Forest City Enterprises, owning 30 properties on the territory of New York. The main activities of Forest City Enterprises, Inc., national realtor company priced at US$ 11.7 billion listed in the New York Stock Exchange (NYSE), are development, construction, purchasing and management of non-residential and residential real property and lands on the whole territory of the United States.