Schorsch REIT to sell shopping center portfolio to Blackstone

$1.975B sale will pay for land under 500 Red Lobster restaurants

May 21, 2014 @ 12:28 pm

By Bruce Kelly

American Realty Capital Properties Inc. said Wednesday it intended to pay for its purchase of 500 Red Lobster restaurants by selling most of its multitenant shopping center portfolio to Blackstone Real Estate Partners VII for $1.975 billion in cash.

American Realty Capital Properties, a publicly traded real estate investment trust with the ticker symbol ARCP, said Friday it bought the land on which more than 500 Red Lobster restaurants stand in a $1.5 billion sale-leaseback deal. ARCP invests in net lease real estate, meaning the tenant pays operating expenses of the property such as taxes and utilities. Net lease properties are commonly single-tenant buildings, including restaurant chains such as Red Lobster.

ARCP expects to finalize the sale to the Blackstone fund in the next month. With the acquisition of the $1.5 billion Red Lobster real estate portfolio, ARCP would meet its goal for 2014 of $3 billion in acquisitions. The company is increasing its acquisition goal for the year to $4.5 billion, according to a statement.

“We now believe the sale of the multitenant portfolio will deliver the best value creation option to our shareholders and serve to enhance the clarity of our single-tenant, net lease investment strategy, further simplifying and rationalizing our business plan,” nontraded REIT czar Nicholas Schorsch, chief executive and chairman of ARCP, said in a statement.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why broker-dealers are on a roll

Deputy editor Bob Hordt and senior columnist Bruce Kelly discuss last year's bounce-back for IBDs.

Latest news & opinion

UBS continues to cut loans to recruits, while increasing compensation to brokers

The wirehouse reduced recruitment loans 20% and increased bonus loans 68% in the first quarter.

Things are looking up: IBDs soared in 2017

With revenue up, interest rates rising and regulation easing, IBDs are soaring.

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

Brokers accept proposed SEC rule on who can call themselves an adviser

Some say the rule will clear up investor confusion, but others say the SEC didn't go far enough.

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print