24 Sep 2009 13:04

Prokhorov's Onexim to acquire 80% stake in New Jersey Nets

MOSCOW. Sept 24 (Interfax) - Forest City Ratner Companies (FCRC), Nets Sports and Entertainment (NSE) and Mikhail Prokhorov's Onexim Group have signed a letter of intent to create a strategic partnership for the development of the Atlantic Yards Project, a 22-acre residential and commercial real estate project in Brooklyn and the Barclays Center, the future home for the NBA's Nets, the companies said in a joint press release.

"In accordance with the agreement, entities to be formed by Onexim Group will invest $200 million and make certain contingent funding commitments to acquire 45% of the arena project and 80% of the NBA team, and the right to purchase up to 20% of the Atlantic Yards Development Company, which will develop the non-arena real estate," the press release says.

Prokhorov commented: "We are delighted to join in this exciting project and to participate in the landmark development of global sports in this entertainment arena in the heart of New York City. I have a long-standing passion for basketball and pursuing interests that forward the development of the sport in Russia."

The transaction is expected to close by the first quarter of next year upon certain conditions being fulfilled, including approval by the NBA's Board of Governors.

Forest City Ratner Companies, a wholly owned subsidiary of Forest City Enterprises, owns and operates 30 properties in the New York metropolitan area. Forest City Enterprises, Inc., an $11.7-billion NYSE-listed national real estate company, is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.