Boston, MA 06/13/2014 (wallstreetpr) – The American Realty Capital Properties Inc (NASDAQ:ARCP) on June 12, 2014 announced about execution of its sale and purchase agreement with the joint venture between the affiliates of Blackstone Real Estate Partners VII (Blackstone) and DDR Corp. (NYSE: DDR). The agreement was signed for selling ARCP’s multi-tenant shopping center portfolio in a deal worth $1.975 billion in cash. After following the customary closing conditions, the sale will close by Q3 2014.
Key Highlights of the Agreement
- The joint venture between affiliates of DDR Corp. (NYSE:DDR) and Blackstone Real Estate Partners VII (Blackstone) executed this purchase and sale agreement for acquisition of portfolio in a $1.975 billion cash deal. This amount includes the assumed debt of $461 million and also around $800 million of new financings.
- Blackstone will be the owner of 95% of the common equity of this joint venture, while the affiliate of DDR will own the rest of 5%.
- As per the agreement, DDR will have to invest up to $300 million in the preferred equity in joint venture with fixed dividend rate of 8.5%.
- DDR has also agreed to offer customary management and leasing services.
- In the venture, DDR will get the rights for the first offer in order to acquire ten of the assets, but it will be subject to conditions dependable with the past transactions.
- The acquisition will close in third quarter of the current financial year. The non-prime asset sales in portfolio will start after the acquisition as a result of the active portfolio management.
What does the ARCP’s multi-tenant shopping center portfolio comprise of?
American Realty Capital Properties Inc (NASDAQ:ARCP)’s multi-tenant shopping center portfolio is spread over 16.4 million square foot and comprises of prime power centers which are situated in Washington D.C., Atlanta, Phoenix, Chicago, Denver, Houston and Los Angeles. These prime power centers are occupied by some of the high quality retailers like The Fresh Market, Walmart, Dick’s Sporting Goods, the TJX Companies, Bed Bath & Beyond, Whole Foods, PetSmart, Kohl’s , Target, Trader Joe’s and Costco.
