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ARCP Completes Acquisition of a Non-Traded REIT

American Realty Capital Property (ARCP) announced today that it has completed its acquisition of Cole Credit Property Trust (CCPT). CCPT was the first non-traded REIT offered by Cole Capital, the private capital management business of ARCP. CCPT invests primarily in single-tenant commercial properties that are net leased to creditworthy tenants, long-term.

The acquisition comes after the announcement of the successful completion of ARCP’s tender offer for all of the outstanding shares of CCPT common stock. The offer, which had been extended to May 16 from its original expiration date of April 25, was for $7.25 per share, net to the seller in cash, without interest and less any applicable withholding taxes.

When combined with the $5.57 per share average aggregate distributions received by CCPT stockholders through May 16, 2014, the $7.25 per share tender price equates to a total return of $12.82 per share, or an approximate premium of 28.2%.

Approximately 77% of CCPT’s stockholders tendered their shares in the offer and ARCP, through its wholly-owned subsidiary, Desert Acquisition, Inc., immediately used its top-up option, thus acquiring an additional number of CCPT shares, bringing shares owned by Desert Acquisition to one share more than 90% of the outstanding shares of CCPT.

Each share of company common stock not purchased in the offer was converted into the right to receive an amount, in cash and without interest, equal to the offer price ($7.25 per share). Such consideration will total approximately $73.1 million, exclusive of transaction and closing costs. Former holders of company common stock will also be entitled to any accrued and unpaid dividends through the closing of the offer. All holders of CCPT shares will receive unpaid distributions of $0.06 per share for the period from April 1, 2014 through May 16, 2014.