NEW YORK CITY—American Realty CapitalProperties is eyeing an acquisition of NorthStarRealty Finance Corp., Bloomberg and the FinancialTimes reported Monday. Citing unnamed sources, Bloombergreported that ARCP is contemplating an offer of about $20 pershare, representing a 25% premium on NorthStar's closing price thispast Friday. The deal would value Northstar at about $6.5billion.
ARCP, the largest net lease REIT, would boost its nontraded REITfundraising and management business with a NorthStar acquisition.Previously, NorthStar announced plans in December to spin off itsasset management business into a new, publicly traded company.
Both Bloomberg and the Financial Times reported thatthe talks are ongoing and there's no guarantee that a deal will bereached. Further, the offer price could change as negotiationscontinue. Spokesmen for both ARCP and NorthStar did not respond toGlobeSt.com's requests for comment by early Monday afternoon.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
