Combined company one of the largest publicly traded REITs in the U.S., with a total enterprise value exceeding $3 billion
March 1, 2013 (New York) – American Realty Capital
Properties, Inc., and American Realty Capital Trust III, Inc.,
completed the closing of their merger in which global law firm
Proskauer served as corporate counsel to both companies. The
closing was announced February 28, 2013, after receiving approval
by both companies' stockholders on February 26.
With an enterprise value of more than $3 billion, the combined
company, ARCP, is one of the largest publicly traded net lease
REITs in the United States. The company comprises almost 700
freestanding commercial properties totaling approximately 16.4
million square feet in 44 states and Puerto Rico.
"A company of this size and magnitude will make it a force to
be reckoned with in the net-lease market," said Peter M. Fass,
Proskauer Partner and co-head of the firm's Real Estate Capital
Markets Group. "The combination enhances ARCP's real
estate portfolio quality, further diversifies its asset base by
industry and geography and creates a net-lease portfolio with a mix
of high-credit- quality and investment-grade tenants of long- and
mid-term lease durations."
The deal was the second major transaction acted on by
Proskauer's Real Estate Capital Markets Group in the past
six months. In September, the firm advised
American Realty Capital Trust on its acquisition by Realty
Income Corporation in a cash-and-stock deal valued in excess of
$2.95 billion, one of the largest mergers of U.S. REITs in 2012.
That deal closed on January 22, 2013.
Together, the two deals vaulted Proskauer to
first place among law firms in SNL Financial's 2012 REIT
M&A league tables. The firm claimed the top spot in terms
of both number of deals and deal value.
In addition to Peter Fass, who led the Proskauer deal team, the
other team members included Partners Daniel I. Ganitsky, Steven L.
Lichtenfeld, James P. Gerkis, Frank Zarb (Corporate) and Leslie
Loffman (Tax); Special Counsel Timothy W. Donovan (Tax); and
Associates Leon Volchyok, Adela K. Cho, Michael E. Ellis and Liz
Crimer Walsh (Corporate).
Proskauer's Real Estate Capital Markets Group is recognized
for its skill and experience. A pioneer in the use of innovative
structures and techniques and creative approaches for executing
highly complex transactions, the firm regularly counsels a premium
roster of clients – including REITs, investment banks, real
estate funds, hedge funds, institutional and specialty lenders,
sovereign wealth funds and pension advisers – across a broad
spectrum of transactions, ranging from public debt and equity
offerings and private placements, mergers and acquisitions and
mortgage and mezzanine financings and restructurings, to joint
ventures, distressed real estate and workouts and real estate
dispute matters.
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