American Realty Capital Global Trust II Discusses Strategic Transaction
American Realty Capital Global Trust II, a publicly registered non-traded real estate investment trust sponsored by AR Global, the successor business to AR Capital, is reviewing an unsolicited proposal for a potential strategic transaction. The company also withdrew a number of charter amendment proposals from its proxy statement, as well as from the agenda of its annual meeting.
A special committee comprised of independent directors, along with its financial and legal advisors, noted that although no definitive agreement has been made, the discussions “have progressed.” The entity soliciting the proposal was not named.
As previously reported by The DI Wire, AR Global is seeking to consolidate seven of its real estate investment trusts with nearly $10.5 billion in assets.
American Finance Trust is seeking to buy Healthcare Trust, Realty Finance Trust, American Realty Capital – Retail Centers of America, and American Realty Capital Healthcare Trust III, while publicly traded Global Net Lease (NYSE: GNL) would acquire American Realty Capital Global Trust II.
American Realty Capital Global Trust II also withdrew nine charter amendment proposals from its proxy statement, as well as from the agenda of its annual meeting. Certain charter amendments from various AR Global REITs were heavily criticized by Robert A. Stanger and Co. in their special report titled “Clear and Present Danger” for attempting to revise shareholder voting and information rights, among other things.
In recent weeks, two additional AR Global non-traded REITs, Healthcare REIT III and Retail Centers of America, have taken similar measures as Global Trust II to evaluate potential strategic transactions. Both REITS also removed certain proposed charter amendments from their proxy statements and from their annual meeting agendas.
American Realty Capital Global Trust II went effective in August 2014 and raised $305.2 million in investor equity prior to suspending its offering following a series of ARC-related scandals. As of March 31, 2016, the company owned 16 properties, of which 4.5 percent are located in the United States and 95.5 percent are located in Europe.
