QIC to Buy Out Forest City Stake in Mall JV

The South Bay Galleria near Los Angeles is one of six shopping malls expected to transfer to QIC by Dec. 31.

CLEVELAND—Forest City Realty Trust (FCEA) and QIC have hammered out the details on a plan announced earlier this year for QIC to take over FCEA’s share of a joint venture on 10 regional malls. Along with FCEA’s sale of its interest in 12 New York City metro properties to Madison International Realty, announced last month, the deal with QIC will effectively mark the REIT’s exit from shopping center retail.

Overall, the portfolio is valued at $3.175 billion, with FCEA’s share representing $1.55 billion. The sale of six of the 10 malls is expected to close by year’s end, with the remaining four to be transferred to QIC ownership under a fixed-price option as FCEA secure replacement assets or other opportunities into which it will deploy its ownership stakes.