AR Capital’s Retail Centers of America Suspends DRIP
American Realty Capital — Retail Centers of America, a publicly registered non-traded REIT sponsored by AR Global – the successor business to AR Capital, has suspended its distribution reinvestment plan to consider a potential strategic transaction with American Finance Trust, another AR Global-sponsored non-traded REIT.
As reported by The DI Wire, American Finance Trust also suspended its DRIP campaign this week in light of a recent strategic review process, although a potential strategic transaction with Retail Centers of America was not mentioned in its SEC filing.
American Realty Capital – Retail Centers of America was named as part of an undisclosed merger between a number of AR Global-sponsored REITs. It was reported that American Finance Trust would buy Healthcare Trust, Realty Finance Trust, American Realty Capital – Retail Centers of America, and American Realty Capital Healthcare Trust III.
ARC—Retail’s board of directors recently established a special committee of independent directors to respond to the unsolicited proposal from American Finance Trust. They also engaged BMO Capital Markets Corp. to act as its exclusive independent financial advisor and retained Arnold & Porter LLP as its special independent legal counsel. The committee noted that the discussions have progressed since receiving AFT’s proposal, but have not resulted in an agreement at this time.
According to a letter sent to DRIP participants, the next distribution payable on September 5th will be paid in cash with no DRIP shares issued.
American Realty Capital—Retail Centers of America went effective in March 2011 and closed in September 2014 after raising $973 million in investor equity. The REIT’s portfolio includes 35 properties totaling 7.5 million square feet with an investment cost of $1.2 billion.
