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Forest City Announces It Has Financing to Build Barclays Center

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ShoP Architects
ShoP Architects

Forest City Enterprises announced Tuesday that it now has all the money it needs to complete the billion dollar Barclays Center by 2012. It will be the most expensive arena ever built...anywhere.

In a statement of its quarterly earnings, FCE, Bruce Ratner's parent company, briefly noted, "All projected debt and equity needed to complete the construction has been fully funded and the Company expects the arena to open in 2012."  FCE's New York subsidiary, Forest City Ratner, will build the arena, for a 5% development fee. In previous statements it reported Barclays Center should be open in time for the 2012-13 season, which will require construction to be complete by July.  The NBA requires a four-month "qualification" period to test everything from security to heat and AC.

Much of the funding comes from the $511 million bond sale in December,. Mikhail Prokhorov's Onexim Group is providing several hundred million more while the state and city is funding infrastructure improvements at the site.  Prokhorov will control 45% of the arena but under certain conditions, the stake can go up to 80%.