American Realty Capital Global Trust to Purchase Wickes Warehouse in United Kingdom
NEW YORK, April 25, 2013 /PRNewswire/ -- American Realty Capital Global Trust, Inc. ("ARC Global") announced today that it expects to acquire in early May a Wickes retail warehouse in the U.K. The property will be purchased for an aggregate price of £3.9 million, or $6.0 million, using an exchange rate of $1.53 to £1.00, representing a capitalization rate of 8.5% (calculated by dividing annualized rental income on a straight-line basis by base purchase price). The triple-net lease has a remaining primary term of 11.4 years and is subject to upward rent adjustments marked to market every five years.
The retail warehouse is leased to Wickes Building Supplies Ltd., a home improvement store, which has an implied investment grade credit rating as determined by a major credit rating agency. Wickes Building Supplies Ltd. operates a chain of 224 do-it-yourself stores in the U.K. and is a subsidiary of Travis Perkins plc. (LSE: TPK), the largest supplier of building materials in the U.K. Travis Perkins plc. has 24,000 employees and a market capitalization of £3.53 billion.
"We are pleased to announce the pending acquisition of the Wickes Building Supplies retail warehouse at a cap rate of 8.5%. This asset exemplifies our ability to identify quality real estate assets, leased to credit tenants, on a long term basis, generating superior yields. With our partner Moor Park, we have assembled a robust pipeline of European and U.S. opportunities," stated Nicholas S. Schorsch, Chairman and Chief Executive Officer of ARC Global.
About American Realty Capital
Founded in 2006, American Realty Capital ("ARC") is a full-service investment management firm providing advisory services to retail and institutional investors. ARC is an active sponsor and manager of public and private real estate investments, a business development company and other investment products. Collectively, ARC's senior team of seasoned professionals has acquired and managed over $8 billion of real estate, as well as $5 billion of corporate sale-leasebacks and net leased properties.
About Moor Park Capital Partners LLP
Moor Park Capital Partners LLP ("Moor Park"), founded in 2006, is a UK limited liability partnership and is regulated by the FSA. Headquartered in London, Moor Park is a private real estate firm which concentrates on commercial property investment in Europe and has approximately £2.7 billion of real estate assets currently under management. Moor Park provides a wide range of services to its clients, including, among others, acquisition, development, asset, property and facility management, leasing services, centralized corporate support services and financing services. The partners of Moor Park are Gary Wilder, Shemeel Khan and Jagdeep Kapoor, and together have 60 years plus experience structuring and executing in excess of £20 billion of real estate transactions over their careers internationally.
ARC Global is a publicly registered, non-traded real estate investment program that intends to qualify as a real estate investment trust for the taxable year ending December 31, 2013. Additional information about ARC Global can be found on its website at www.arcglobaltrust.com.
The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as "anticipate," "believe," "expect" and "intend" indicate a forward-looking statement, although not all forward-looking statements include these words.
SOURCE American Realty Capital Global Trust, Inc.