SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
_____________
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: August 7, 1997
RECKSON ASSOCIATES REALTY CORP.
(Exact name of Registrant as specified in its Charter)
Maryland
(State of Incorporation)
1-13762 11-3233650
(Commission File Number) (IRS Employer Id. Number)
225 Broadhollow Road 11747
Melville, New York (Zip Code)
(Address of principal executive offices)
(516) 694-6900
(Registrant's telephone number, including area code)
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
(99) Press Release and Additional Information
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RECKSON ASSOCIATES REALTY CORP.
/s/ J. Michael Maturo
_______________________________________
J. Michael Maturo
Executive Vice President
and Chief Financial Officer
Date: August 7, 1997
EXHIBIT INDEX
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EXHIBITS DESCRIPTION PAGE
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(99) Press Release and 5
Additional Information
EXHIBIT 99
PRESS RELEASE
RECKSON ASSOCIATES REALTY CORP.
225 Broadhollow Road
Melville, New York 11747
(516) 694-6900 (Phone)
(516) 756-1764 (Facsimile)
Contact: Scott Rechler, President
J. Michael Maturo, C.F.O.
FOR IMMEDIATE RELEASE
RECKSON ANNOUNCES FORMATION OF STRATEGIC INVESTMENT
PARTNERSHIP AND SUBSIDIARY C-CORPORATION TO POSITION
THE COMPANY FOR LONG-TERM OPPORTUNISTIC GROWTH
LEWIS RANIERI AND JON HALPERN JOIN RECKSON BOARD
IN SERIES OF STRATEGIC, INTEGRATED MOVES
MELVILLE, NEW YORK, JULY 11, 1997) - RECKSON ASSOCIATES REALTY CORP. (NYSE:
RA) today announced a series of strategic events that will establish a
platform for the Company to execute its opportunistic vision for growth into
the future. The Company announced the formation of RECKSON OPPORTUNITY
PARTNERS, L.P. ("ROPARTNERS"), and the creation of RECKSON STRATEGIC INC.
("RECKSON STRATEGIC").
ROPartners is a joint venture that will invest primarily in real estate
operating companies in sectors (other than suburban office and industrial
properties) that provide for significant growth opportunities. ROPartners
will initially be capitalized with $120 million of equity commitments to be
drawn as required, and anticipates raising another $200 million from
institutional investors.
Reckson Strategic is being formed as a subsidiary of Reckson that will serve
as the majority owner of the general partner of ROPartners. In addition,
Reckson Strategic may take other investments in real estate related companies
that are complimentary to Reckson's core business. Reckson Strategic will
initially be capitalized by Reckson Operating Partners, L.P. The Company is
evaluating a spin off of Reckson Strategic to Reckson stockholders at a
future date.
Commenting on these events, Scott Rechler, Reckson's President and Chief
Operating Officer stated, "Reckson's management team has historically focused
its energies on developing innovative strategies to identify opportunities
where our vision and experience can create significant value. The
establishment of Reckson Strategic Inc. and Reckson Opportunity Partners, L.P.
will provide Reckson with a flexible platform from which to source additional
investment opportunities that focus on the value creation potential of
experienced entrepreneurial management teams." Rechler added, "Among other
advantages, we believe that this platform will provide the Company with
the ability to research a diversity of market sectors and identify operating
"franchises" that have significant upside potential."
The general partner of ROPartners is owned by Martin J. Rabinowitz, Jon
Halpern and Reckson Strategic. Mr. Rabinowitz and Mr. Halpern will manage
the day to day operations of ROPartners from a separate location. Mr.
Rabinowitz was formerly a general partner and head of real estate investments
of Odyssey Partners, L.P., a $3 billion hedge fund. Prior to his 14 year
tenure with Odyssey, Mr. Rabinowitz was a partner and head of the tax
practice group at the New York law firm of Weil, Gotshal & Manges. Mr.
Halpern and Mr. Rabinowitz have committed to contribute $10 million each to
ROPartners, with $100 million to be contributed by Reckson Strategic.
Jon Halpern commented, "ROPartners' strategy of targeting franchise type
investments offers three levels of potential value creation: first, the
opportunistic acquisition of an operating company and its assets; second, the
utilization of the operating company as a platform to pursue additional
opportunities in its respective sector; and third, the enhancement of the
operating company's enterprise value. This strategy is exemplified by our
first franchise investment where ROPartners acquired a 76% interest in
America Campus Lifestyles Companies, LLC, a leading student housing
enterprise based in Austin, Texas."
In addition, the Company announced the expansion of its Board by two seats to
be filled by Lewis Ranieri and Jon Halpern. Mr. Ranieri was formerly Vice
Chairman of Salomon Brothers, Inc., and is founder of Hyperion Partners L.P.,
and Chairman of Bank United Corp. of Houston, Texas. Mr. Halpern will resign
his position as Executive Vice President of Reckson to assume positions on
Reckson's Board and Executive Committee and as a managing member of the
general partner of ROPartners. Mr. Halpern has also committed to invest an
additional $7 million of equity into Reckson.
Donald Rechler, Reckson's Chairman and Chief Executive Officer stated,
"Reckson shareholders should benefit from an expanded pool of talent, capital
and opportunities that will build on our core capabilities in a structure
that controls our risk exposure. Jon Halpern and Martin Rabinowitz represent
some of the finest real estate deal making talent available. I am also
pleased to welcome Lewis Ranieri, a widely acknowledged innovator in real
estate finance, to the Reckson team. Lew has an outstanding track record and
will be a valuable addition to our Board."
Reckson Associates Realty Corp. is a self-administered and self-managed real
estate investment trust (REIT) specializing in the acquisition, leasing,
financing, management, and development of office and industrial properties.
Reckson's core growth strategy is focused on the suburban markets within the
50 mile radius surrounding New York City. Since the completion of its
initial public offering in May 1995, Reckson has acquired or contracted to
acquire approximately $550 million of properties comprising approximately 7.6
million square feet of space.
Reckson is one of the largest publicly-traded owners and managers of Class A
suburban office and industrial properties in the New York "Tri-State" area,
with 142 properties comprised of approximately 12.9 million square feet
either owned or under contract.
This information contains forward-looking information that is subject to
certain risks, trends and uncertainties that could cause actual results to
differ materially from those projected. Among these risks, trends and
uncertainties are the general economic climate; the supply of and demand for
office and industrial properties in the tri-state area; interest rate levels;
the availability of financing; and other risks associated with the
development and acquisition of properties, including risks that the
development may not be completed on schedule, that the tenants will not take
occupancy or pay rent, or that development or operating costs may be greater
than anticipated. For further information on factors which could impact the
Company, reference is made to the Company's filings with the Securities and
Exchange Commission.
