ARCP Plans To Sell Multi-tenant Shopping Center Portfolio For $1.975 Bln Cash

(RTTNews) - American Realty Capital Properties, Inc., (ARCP) or ARCP said it intends to sell substantially all its multi-tenant shopping center portfolio for $1.975 billion in cash to affiliates of Blackstone Real Estate Partners VII.

ARCP has entered into a letter of intent to sell its multi-tenant shopping center portfolio to Blackstone and expects to finalize definitive documentation with respect to the sale in the next 30 days.

The company then will use the proceeds from this sale to fund its recently announced Red Lobster sale-leaseback transaction.

The properties included in this portfolio are the same properties ARCP previously announced would be spun off into American Realty Capital Centers, Inc.

With the acquisition of the $1.5 billion Red Lobster real estate portfolio via sale-leaseback, ARCP will meet its previously announced acquisition goal for 2014 of $3.0 billion, well ahead of year-end.

As a result, the company is increasing its self-originated acquisitions target for the full-year 2014 to $4.5 billion.

Separately, the company said it has commenced a public offering of 100 million shares of its common stock. ARCP expects to grant the underwriters a 30-day option to purchase up to 15 million additional shares of common stock.

The company plans to use the net proceeds of the offering to repay outstanding debt under its existing credit facility and for other general corporate purposes.