ARCP, Cole to Join in $11B Merger

NEW YORK CITY-Having sought unsuccessfully to acquire Cole Credit Property Trust III this past spring, American Realty Capital Properties Inc. will now be taking over Cole Real Estate Investments Inc., the REIT formed from the subsequent merger of Cole Credit III and Cole Holdings. Valued at $11.2 billion, the merger announced Wednesday morning—along with the pending acquisitions of CapLease of American Capital Trust IV—will create a net lease REIT with an enterprise value of $21.5 billion, the largest such company in the space.

The merger has been approved by the boards of both companies and is expected to close in the first half of 2014. It will create a net lease portfolio of about 102 million square feet, with 3,732 properties leased to over 600 tenants across 49 states and Puerto Rico.