Tishman Speyer & BlackRock-Led Venture to Transfer Control & Operation of Stuyvesant Town to Lenders

Jan. 25, 2010 - PRLog -- New York, NY -- Statement from spokesperson for the joint venture:

We have spent the last few weeks negotiating in good faith to restructure the debt and ownership of Stuyvesant Town/Peter Cooper Village. It was our hope in these discussions that our partnership would remain as part of the long-term ownership.

Over the last few days, however, it has become clear to us through this process that the only viable alternative to bankruptcy would be to transfer control and operation of the property, in an orderly manner, to the lenders and their representatives.

We have no intention of putting ST/PCV into bankruptcy. We make this decision as we feel a battle over the property or a contested bankruptcy proceeding is not in the long-term interest of the property, its residents, our partnership or the City.

Tishman Speyer (http://www.tishmanspeyer.com/) would not consider a long-term management contract to continue operating the property that does not involve ownership. Without a restructuring that would keep our ownership group as part of the equity, we felt it best that the new owners install a new management team.

We are fully committed to an efficient transition of the property's operation and are offering to continue managing the property during this period to make the transition smooth and seamless for the residents.