Related Signs Rail Yards Deal with M.T.A.; Picks up Canadian Partner
Eliot Brown May 26, 2010, 10:52 a.m.
Two years after it was first designated the winning bidder of the West Side rail yards, the Related Companies has signed a contract with the M.T.A. to embark on a $15 billion development on the 26-acre site by the Javits Center, the company announced Wednesday.
The firm, led by Stephen Ross, also announced a new equity partner in the deal: Candaian Pension fund Ontario Municipal Employees Retirement System, which came in after Goldman Sachs dropped out as a 33 percent partner in late Janaury. The fund will provide up to $475 million in equity for the mega-project. The Journal had the news of the fund’s partnership today.
“Related is thrilled to partner with OMERS’ Oxford Properties Group on what is destined to be the most defining development opportunity of the 21st Century,” Mr. Ross said in a statement. “Their investment in the West Side Yards is an unequivocal show of confidence in the future of New York. Oxford has an over fifty year track record of success and global reach making them an ideal partner for Related on the West Side Yards.”
Now the task for Mr. Ross is to land some tenants, as the development requires tremendous investment in infrastructure. It needs a platform, for a cost of about $1 billion, before any major buildings can get constructed, a lengthy process itself.
Related does not need to close on the contract with the M.T.A. until the market hits certain triggers showing improvement.