ARC Healthcare Trust III in Strategic Transaction Talks with Affiliate
American Realty Capital Healthcare Trust III, Inc., a publicly registered non-traded REIT sponsored by AR Global, the successor business to AR Capital, is discussing a potential strategic transaction with an affiliate of its sponsor.
Healthcare Trust III’s special committee along with its financial adviser, SunTrust Robinson Humphrey Inc., are in talks with the special committee and financial advisor of the unnamed affiliated company. The REIT indicated that although the discussions have progressed since the unsolicited proposal was received, there is currently no agreement with any party.
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.
Healthcare Trust III also withdrew two heavily criticized charter amendment proposals from its proxy statement, as well as from the agenda of its annual meeting.
Another AR Global non-traded REIT, American Realty Capital – Retail Centers of America Inc., recently disclosed that it had also taken similar measures as Healthcare REIT III. ARC-Retail formed a special committee to evaluate a potential strategic transaction with American Finance Trust. It also removed certain proposed charter amendments from its proxy statement and from the agenda of its annual meeting, and settled a shareholder lawsuit relating to the proposed merger and charter amendment changes.
American Realty Capital Healthcare Trust III raised $168 million prior to the cancellation of its offering following a series of ARC-related scandals, and currently owns a portfolio of 19 properties valued at $128 million.
