MacKenzie Affiliate Offers to Purchase 1 Million Shares of ARC Retail

Coastal Realty Business Trust, an affiliate of real estate investment firm MacKenzie Capital Management LP, are offering to purchase up to 1 million shares of American Realty Capital – Retail Centers of America common stock for $5.50 per share. The offer, which constitutes 1.01 percent of the outstanding shares, expires on January 24, 2017. Coastal Realty does not currently own any shares of ARC Retail, a non-traded REIT sponsored by AR Global.

The REIT is currently in talks to merge with another AR Global REIT, American Finance Trust, to create a single retail-focused REIT with an enterprise value of approximately $3.9 billion. American Finance Trust plans to acquire all of the outstanding common stock of Retail Centers of America for approximately $1.4 billion, if shareholders approve.

The ARC Retail per share merger consideration has an estimated value of approximately $10.26 per share, based on the exchange ratio and American Finance Trust’s published estimated per share NAV of $24.17 and cash consideration of $0.95 per share. Shares of ARC Retail were originally sold for $10.00 each.

American Realty Capital—Retail Centers of America went effective in March 2011 and closed in September 2014 after raising $973 million in investor equity. The REIT’s portfolio includes 35 properties totaling 7.5 million square feet with an investment cost of $1.2 billion.

MacKenzie Capital Management LP, a real estate investment management business based in Moraga, California has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

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