ARCP to Trade Shopping Centers to Blackstone

NEW YORK CITY—American Realty Capital Properties said Wednesday it plans to sell substantially all of its multi-tenant shopping center portfolio to a Blackstone Group fund for $1.98 billion in cash. Proceeds from the sale would then be recycled to fund the net lease REIT’s $1.5-billion Red Lobster portfolio acquisition, which it announced this past Friday.

The pending sale to Blackstone Real Estate Partners VII follows up ARCP’s announcement in March that it planned to spin off the multi-tenant retail into a separate REIT, to be known as American Realty Capital Centers Inc. Instead, most of the 11.7-million-square-foot portfolio that would have comprised ARCC’s holdings will trade to Blackstone, although ARCP would continue to own 18 shopping centers totaling 1.7 million square feet. The portfolio came into ARCP’s fold as a result of its $11-billion merger with Cole Real Estate Investments earlier this year.