A week after its inital offer was rejected, real estate investment trust American Realty Capital Properties Inc had increased its bid for Cole Credit Property Trust III. The new offer is now pegged at US$6.7 billion or US$12.50 per share in cash or US$13.59 per share in stock.
The previous bid was set at US$12 per share in either cash or stock totalling US$5.7 billion. The move was designed to account for Cole Credit's planned acquisition of its external adviser. This was the reason why the original bid submitted was rejected.
Should the deal push through, American Realty would become the largest publicly traded REIT in the net-lease sector. This market has become increasingly popular because of the current low interest cost conditions in the market.
Currently, American Realty has 1,706 properties in its portfolio or about sixty million square feet of leased properties to Citizens Bank, Dollar General, FedEx and Wallgreen's. Cole Credit on the other hand has 926 properties in its portfolio for forty million square feet. It has leased properties in 47 states and has Walgreens and CVS Caremark in its tenant list.
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