American Realty Capital plans to spin off its $2.2 billion portfolio of multi-tenant shopping center properties into a publicly traded real estate investment trust.
The Manhattan-based global real estate firm will own 25 percent of the new REIT, dubbed American Realty Capital Retail Centers of America, according to the company’s website. Investors will receive a share of the REIT for every 10 shares they own of American Realty.
Net operating income for the new property trust is expected to reach $139 million in 2014, the company told Bloomberg.
The firm, one of the biggest landlords for single-tenant buildings in the U.S., has been active in retail real estate as of late. In October of last year American Realty acquired Cole Real Estate Investments, a REIT which holds 3,700 retail, office and other properties, for $6.85 billion. The firm currently has spinoff trusts for hospitality and medical properties, and owns the retail space that Macy’s megastore leases at 1440 Broadway. [Bloomberg] –– Angela Hunt