ARCP Reels in Red Lobster SLB; Darden Chief Bows Out

NEW YORK CITY—In a three-pronged outcome from a single large-scale transaction, American Realty Capital Properties Inc. has closed on its previously announced $1.5-billion sale-leaseback of approximately 500 Red Lobster locations; Darden Restaurants has closed on its sale of the seafood chain to Golden Gate Capital; and Darden’s chairman and CEO announced that he would step down at year’s end. All three announcements were made late Monday afternoon.

For ARCP, the SLB “provides value to our shareholders and supports long-term earnings growth” thanks to built-in annual compounded rent gains, says David S. Kay, the net lease REIT‘s president. “We are pleased with the opportunity to partner with GGC, who brings exceptional experience in the full-service restaurant industry, as well as the seasoned Red Lobstermanagement team, and have great confidence in the bright future for this iconic restaurant brand.” It’s the fourth partnership between ARCP and San Francisco-based GGC.