China-based Greenland to increase stake in Brooklyn housing project

Greenland USA, a subsidiary of the Shanghai-based real estate developer Greenland Group, expects to close a deal by mid-2018 to increase its stake in a $5 billion Brooklyn, New York, housing project to 95 percent.

In the deal with Forest City Realty Trust – an Ohio-based real estate investment trust– Greenland will increase its ownership of Pacific Park from 70 percent, and Forest City will reduce its stake to 5 percent from 30 percent.

"We are excited to continue working with Forest City and are proud of the tremendous progress we've made together in bringing affordable housing and residential space to the market quickly," Zhang Yuliang, president and chairman of Greenland Group, said in a statement.

The Pacific Park project – first announced in December 2003 – will likely get a boost in speed to complete it and capital from the deal, according to the New York Post. In October, Forest City stopped work at the development, citing a $307.6 million accounting loss on the project, The Real Deal reported.

Four of 15 buildings are complete. The project calls for 6,430 units of housing, including 2,250 units of affordable housing, office space, retail stores, community facilities and eight acres of publicly accessible open space.

The 22-acre development, known as Atlantic Yards until 2014, is adjacent to the Barclays Center, a sports and entertainment arena. Greenland intends to break ground on a new apartment building next to the sports center in 2019.

Since entering the US market in 2013, Greenland USA has developed several projects, including the $1 billion Metropolis complex in Los Angeles with residential buildings and an upscale hotel.