Apollo buys majority stake in American Realty Capital for $378M

New company, AR Global, will have Schorsch, Kahane on board

TRD MIAMI /
Aug.August 07, 2015 09:45 AM

From the New York website: UPDATED, 5:35 p.m., August 6: Apollo Global Management is acquiring a majority stake in AR Global Investments, a new company representing a majority of scandal-hit American Realty Capital’s asset management business, Apollo announced.

The move will more than double the private equity giant’s real estate assets to around $27 billion.

Apollo, led by Leon Black, is buying the stake with $200 million in cash and $178 million and stock. AR Global will be governed by a newly-created board of directors that will include four American Realty Capital partners — among them Nicholas Schorsch, who will serve as the company’s senior managing director, and William Kahane, who will serve as interim CEO and chief investment officer of AR Global’s real estate activities.

AR Capital currently manages approximately $19 billion in assets across a variety of investment platforms including real estate investment trusts, according to Apollo. The deal includes the Michael Happel-led New York REIT, an Apollo spokesperson told The Real Deal, and will increase Apollo’s total assets under management to $182 billion.

AR Capital’s spin-offs include American Realty Capital Properties, the Glenn Rufrano-led firm now known as VEREIT. That entitity is now completely independent of AR Capital and was not part of the Apollo deal, though it’s also facing backlash for its former ties to the Schorsch empire.

Correction: A previous version of this story said New York REIT was not part of the deal.


Related Articles

arrow_forward_ios

Icon Las Olas 2.0? Related plans mixed-use tower in downtown Fort Lauderdale

Apollo pays $20M for senior housing complex near Lake Worth

White House attorneys investigating whether loans to Kushner Companies violated law: report

Apollo’s Marc Rowan sells One Ocean condo at a loss

Former American Realty Capital CFO arrested over accounting scandal

Schorsch’s AR Global planning $10.5B REIT consolidation

Cypress Financial Center in Fort Lauderdale scores $33M loan

Glenn Rufrano hopes asset sales can reinvent former American Realty Capital Properties

arrow_forward_ios