Merger Approved – Cole to Merge with ARC

Announced today, in separate special meetings for American Realty Capital Properties, Inc. (ARCP) and Cole Real Estate Investments, Inc. (Cole), each company’s voting stockholders have overwhelmingly approved the merger expected to create the world’s largest net lease REIT with an enterprise value of $21.5 billion.

ARCP stockholders voted 98.2% in favor while 94.9% of Cole’s shares voted were voted in support of the merger.

Marc Nemer, Cole’s Chief Executive Officer, said, “We believe that this transaction provides the size, scale and operating efficiencies that will create superior growth opportunities and higher returns for our stockholders. ARCP continues to demonstrate its ability to grow its net lease business for the benefit of stockholders, and at the same time position the company as the undisputed leader in the net lease category, and one of the most successful REITs in the industry.”

Nicholas S. Schorsch, Chairman & CEO of ARCP, commented, “We are thrilled that stockholders from both companies have voted overwhelmingly to approve the proposals related to the ARCP-Cole merger.”

ARCP and Cole were the top two sponsors in terms of capital raised in 2013 according to Robert A. Stanger & Co. Of the $24.6 billion raised in the direct investment industry, these two firms, soon to be one, took in over $11.9 billion in new capital collectively, or 48% of the industry total. 

It takes talent to achieve numbers like these. In order for the distribution teams to raise this type of money, the management side of the business has to perform as well. 

Mr. Schorsch added, “We are also excited to welcome the Cole management team and their employees to the ARCP family.”