Tuesday, September 13, 2016

Two Non-Traded Retail REITs Merge in $1.4B Transaction

Once approved, the combined REIT operating as American Finance Trust Inc. will own 494 retail properties, including Northwoods Marketplace in North Charleston, S.C.American Finance Trust Inc. (AFIN) has acquired all of the outstanding common stock of American Realty Capital – Retail Centers of America Inc. (RCA) for approximately $1.4 billion, including the assumption or repayment of $432 million in debt. The merger of the two New York-based, non-traded REITs creates a retail REIT with an enterprise value of approximately $3.9 billion.

The combined company will retain the AFIN name and continue to be led by AFIN’s management team, with the addition of Kase Abusharkh from RCA, who will serve as AFIN’s chief investment officer of the multi-tenant portfolio. Members of both boards of directors will continue to serve on the board of the combined company.. . . more

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