(Brooklyn, U.S.A. and Moscow, Russia) - December 16, 2009 - Forest City Ratner Companies ("FCRC"), Nets Sports and Entertainment ("NSE") and Onexim Sports and Entertainment Holdings ("Onexim") announced today that they have finalized their agreement 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 parties had signed a letter of intent on September 23, 2009.
The agreement provides for the sale of 80 percent of the Nets, 45 percent of the arena to Mikhail Prokhorov's Onexim, subject to approval by the NBA Board of Governors and the option to acquire up to 20% of the Atlantic Yards Project.
Bruce Ratner, the Chairman and CEO of Forest City Ratner Companies, said, "We're delighted that we have finalized our agreement with Mikhail and Onexim. We're excited about the new partnership and moving forward with the Barclays Center and the Atlantic Yards project."
Mikhail Prokhorov, president of Onexim Group, said, "I am delighted that the agreement with Bruce Ratner and NSE to acquire majority ownership of the Nets and a significant stake in the Barclays Center has been signed. I am looking forward to working with Bruce and his team to bring a world-class entertainment and sports center to the heart of New York City. Brooklyn is an exceptionally attractive market for a new arena and the Barclays Center will provide a fantastic home for the Nets."
Simpson Thacher & Bartlett LLP acted as legal counsel to FCRC and NSE for the transaction. Hogan & Hartson advised Onexim.
FCRC announced yesterday that $511 million in bonds for the Barclays Center had been sold.