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.
The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.