Related Cos. Spin-Off Will Acquire Controlling Stake in Citi Bike
Alta Bicycle Share, the Portland, Ore. based company that operates New York’s Citi Bike program as well as bicycle share systems in several other cities, is about to get a financial shot in the arm, the Wall Street Journal reported yesterday.
REQX Ventures, an investment firm founded by members of Related Companies, will finalize a deal to acquire a controlling stake in the beleaguered bike share network with an eight-figure contribution which could close as soon as next week, the Journal reported.
Citi Bike has been popular with locals, garnering over 100,000 yearly memberships, but was hit hard by infrastructure damage caused by Superstorm Sandy and a dearth of tourist ridership. The funding that the deal would provide will allow Citi Bike to expand further into Brooklyn, Queens and upper Manhattan, according to the Journal’s story.
In a call with Commercial Observer, a spokeswoman for Related declined to provide further details about the deal or comment on whether the company’s real estate portfolio was a factor in the acquisition.