Boston, MA 05/06/2014 (wallstreetpr) – The diversified real estate investment trust American Realty Capital Properties Inc (NASDAQ:ARCP) plans to make acquisitions that it expects to support its growth and diversification efforts. However, the company recently denied being in merger talks with real estate financier Northstar Realty Finance Corp. (NYSE:NRF).
Speculations were widespread that the companies were talking towards a tie-up but both companies dismissed such talks as rumors. However, that does not mean that ARCP has given up its acquisition quest. Though the companies denied currently being in talks, they both failed to clarify whether they had previously been in talks. As such, speculations remain that the companies might be working silently but such talks might not necessarily lead to a merger.
NorthStar Realty provides real estate loans and also manages commercial real estate debts. Its acquisition would be important to American Realty Capital Properties Inc (NASDAQ:ARCP) that is keen on expanding to more real estate activities as it anticipates rewarding times ahead.
Growth through acquisition
Acquisitions have proven to be important strategies for the company to attain growth and take advantage of the market opportunities. The company has made several acquisitions in recent times and maintains a closer eye on the market for more acquisitions. Its latest acquisition was the February purchase of Cole Real Estate Investment Inc for $7.3 billion.
Asset spinoff
As American Realty Capital Properties Inc (NASDAQ:ARCP) takes advantage of its strong balance sheet to target peers and rivals for acquisition, the company can also be seen rebalancing its portfolio, perhaps to ensure that the acquisition it has already made or planning to make do not bog down its operations. As such, the company recently announced plans to spin off its shopping center business into a standalone and publicly traded company. The American Realty Capital Centers Inc is expected to list on NASDAQ and might start trading as soon as before the end of the 2Q2014.
The move to spinoff the business resonate with the efforts at American Realty Capital Properties Inc (NASDAQ:ARCP) to enhance shareholder value. Therefore, the company expects to generate as much as $400 million in proceeds.
