MacKenzie Affiliate Extends ARC Retail Tender Offer Expiration Date

Coastal Realty Business Trust, an affiliate of real estate investment firm MacKenzie Capital Management LP, has extended the expiration date for the recent American Realty Capital – Retail Centers of America tender offer. The tender offer now expires on February 7, 2017.

As previously reported by The DI Wire, the MacKenzie affiliate is offering to purchase up to 1 million shares of ARC – Retail common stock for $5.50 per share. The offer constitutes 1.01 percent of the outstanding shares and nearly 1400 shares have been tendered so far.

The REIT is currently in talks to merge with another AR Global REIT, American Finance Trust, to create a single retail-focused REIT with an enterprise value of approximately $3.9 billion. American Finance Trust plans to acquire all of the outstanding common stock of Retail Centers of America for approximately $1.4 billion, if shareholders approve. The stockholder meetings are scheduled for February 13, 2017.

The ARC Retail per share merger consideration has an estimated value of approximately $10.26 per share, based on the exchange ratio and American Finance Trust’s published estimated per share NAV of $24.17 and cash consideration of $0.95 per share. Shares of ARC Retail were originally sold for $10.00 each.

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.

MacKenzie Capital Management LP, a real estate investment management business based in Moraga, California has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

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