UNLOCK THE POWER OF THE VAULT

AR Global Non-Traded REITs to Merge in $1.4B Deal

September 16, 2016

AR Global Non-Traded REITs to Merge in $1.4B Deal

Once combined, the retail-focused portfolio will comprise 494 properties in 39 states with a total of 20.8 million square feet.

September 9, 2016 | by Gail Kalinoski | Commercial Property Executive

New York—Two non-traded REITs sponsored by New York-based AR Global plan to merge, with American Finance Trust Inc. acquiring the much smaller American Realty Capital–Realty Centers of America Inc.–for $1.4 billion in a combination of cash, stock and assumed debt. The merger will create a retail-focused REIT with an enterprise value of approximately $3.9 billion.

In separate announcements, both REITs said special committees of their boards had unanimously approved the definitive merger agreement. Once combined, the portfolio will comprise 494 properties in 39 states with a total of 20.8 million square feet.

Under the terms of the agreement, RCA shareholders will receive 0.385 shares of AFIN common stock and $0.95 in cash for each share of RCA common stock they own. Upon closing, RCA shareholders will own about 37 percent of the combined company. The deal also gives RCA a 45-day go-shop period in which they can seek proposals from third parties. RCA would pay a $5.1 million termination fee to AFIN if RCA cancels the merger agreement.

Article Located Here

Print Friendly, PDF & Email
Go Back
Second Annual Blue Vault Broker Dealer Educational Summit 2016
Broker Dealer Educational Summit 2016
April 14, 2016

The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.