Schorsch spins off new listed REIT to squeeze out more value

American Realty Capital Centers will concentrate on multitenant shopping centers

Mar 13, 2014 @ 11:59 am

By Trevor Hunnicutt

Nicholas Schorsch plans to add a new publicly traded real estate investment trust to his portfolio by breaking up an existing REIT.

He intends to create a new REIT, American Realty Capital Centers Inc. (ARCM), out of another of his publicly traded REITs, American Realty Capital Properties Inc. (ARCP).

Shareholders of ARCP will receive one share of ARCM for every 10 shares that they own of ARCP.

(Don't miss: IN senior columnist Bruce Kelly on Schorsch's plans to grow RCS Capital.)

ARCM, which will be known as ARCenters, will concentrate on owning and operating multitenant shopping centers, while ARCP will narrow its focus to single-tenant, free-standing retail properties.

ARCM will start out with 69 properties from ARCP with a total of 11.8 million square feet.

ARCP's operating partnership will retain 25% ownership of ARCM. Mr. Schorsch will serve as chairman.

“By separating the two high-quality portfolios, we intend to create more clarity, more efficiency and more opportunity for our stockholders,” he said in a statement announcing the spinoff.

The REITS trade on the Nasdaq.

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