ARCP Plans Spinoff into Shopping Center REIT

NEW YORK CITY—American Realty Capital Properties said Thursday it planned to spin off its multi-tenant shopping center portfolio into a separate, publicly traded REIT valued at more than $2.2. billion. The spinoff, ARCP president David Kay said during a conference call, would establish ARCP as a pure-play net lease entity and the newly created American Realty Capital Centers Inc. as a pure-play shopping center entity.

At present, the 69-property, 11-million-square-foot shopping center group is “imbedded” in a much larger net lease portfolio, Nicholas Schorsch, ARCP’s executive chairman and CEO, said Thursday. A spinoff, he explained, would unlock the value of those multi-tenant retail assets and leverage the expertise of ARCP’s shopping center team. An ARCP spokesman tells GlobeSt.com that the majority of both the multi-tenant retail portfolio and the team that runs it came into the ARCP fold as a result of the $11-billion merger with Cole Real Estate Investments, which closed with last month.