REIT Watch: American Realty Capital Trust to Buy GE Capital Retail Properties Portfolio

on Jun 4, 2013

**United States**

**American Realty Capital Trust to Pay $1.45 Billion for 986 Properties**
American Realty Capital Trust IV has agreed to buy a portfolio of retail properties from General Electric’s finance arm for $1.45 billion (₤948 million). The non-traded real estate investment trust owned by the American Realty Capital group, said the purchase would reduce net operating income from its top 10 tenants to 39.5 percent of the total from 82.5 percent and will also more than double annualised rental income to about $170 million (₤111 million) from $71 million (₤46 million).

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The portfolio to be acquired comprises 986 properties and its tenants include Burger King and Pizza Hut. The REIT plans to finance the deal using part of equity from shareholders and debt. “This acquisition exemplifies our focus on building one of the best-in-class, lowest leveraged, long-term, retail focused net lease portfolios in the REIT industry’s history,” said Nicholas Schorsch, chief executive and chairman of American Realty Capital Trust IV.

The REIT expects to close the major portion of the GE Capital’s portfolio acquisition in the next 30 days.
**Griffin Capital Essential Asset to Acquire R&D Facility in Arizona**
Griffin Capital Essential Asset, a publicly registered non-traded real estate investment trust with a portfolio that currently includes 19 office and industrial distribution properties, announced today the acquisition of a 231,400 sq. ft. Class A Research & Development facility located in Arizona. The REIT will pay approximately $32.5 million (₤21.3 million) for the real estate asset, which represents an estimated going-in capitalisation rate of 8.49 percent.

“This acquisition fulfills a number of key objectives for the REIT including: a highly accretive investment yield relative to the REIT’s current distribution rate; our first acquisition in the Phoenix market; and the ability to acquire a large, institutional-quality asset while still preserving cash for future acquisitions,” Michael Escalante, Griffin Capital’s chief investment officer, said in a statement.

**Whitestone REIT to Pay $0.285 Quarterly Dividend**
Whitestone (NYSE:WSR), a real estate investment trust that owns, operates and redevelops visibly located properties in established or developing culturally diverse neighbourhoods, announced today that it would distribute a quarterly dividend for July, August and September of $0.285 per share. The dividend will be paid in three instalments of $0.095 per share each month.
**Phillips Edison-Arc Shopping Center Appoints New CFO**
Phillips Edison-Arc Shopping Center, a public non-traded REIT investing in grocery-anchored shopping centres, announced yesterday that Devin I. Murphy had joined the company as its chief financial officer.
“With over 25 years of experience in the real estate investment industry, including executive leadership positions with Morgan Stanley and Deutsche Bank Securities Inc., Devin brings significant experience to the Company,” Jeffrey Edinson, co-chairman of the board and chief executive, said in a statement. “He complements Phillips Edison-ARC, which is dedicated to building a diverse portfolio of top-performing grocery-anchored shopping centers throughout the United States.”
**Whitestone REIT’s share price was $16.58 as of 04.06.2013, 14.30 BST.**


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