The spin off is off; American Realty to sell multi-tenant shopping center portfolio

|By:, SA News Editor

The buyer for $1.975B in cash is a Blackstone (BX) real estate fund. A letter of intent has been signed and a definitive agreement of sale is expected in the next 30 days. The properties included in the sale are the same ones American Realty earlier announced would be spun off into American Realty Capital Centers.

ARCP will use the proceeds from the sale to fund the just-announced Red Lobster sale-leaseback deal.

American Realty President David Kay notes the cap rate on the shopping center portfolio is more than 100 basis points lower than the 7.9% cash cap rate on the Red Lobster properties.

The company also launches a 100M share secondary offering, with the underwriters granted a greenshoe option of 15M shares.

Source: Press Release