Brookfield Asset Management is acquiring Forest City Realty Trust Inc., a real estate investment trust, in an all-cash transaction valued at $11.4 billion, according to a joint news release.
In the transaction, which is expected to close in the fourth quarter, Brookfield would acquire all of Forest City's outstanding shares of common stock for $25.35 per share, a 26.6% premium over the REIT's June 15 closing share price of $20.03. Included in the transaction value is Forest City's proportionate share of debt.
Brookfield's investment was made from its still-open Brookfield Strategic Real Estate Partners III fund, according to sources.
Forest City's portfolio includes offices, life-science properties, retail assets and multifamily real estate, as well as five large development projects in New York, San Francisco and Washington.
In connection with the transaction hedge funds Starboard Value and Scopia Capital Management, which together own approximately 14% of Forest City's outstanding shares, have entered into merger support agreements in which the two firms have agreed to vote their shares in favor of the transaction at a Forest City special meeting.
Brookfield Asset Management spokeswoman Suzanne Fleming declined to comment beyond the news release.