RCS Capital Corp. said Wednesday that it is buying a subsidiary of American Realty Capital Properties Inc. that invests in commercial real estate for at least $700 million.
The deal is expected to close in the second half of 2014.
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RCS, a New York-based investment banking company, said it is buying Cole Capital in a series of transactions that will take place until April 2015. RCS will pay $200 million in cash, $300 million in unsecured debt and $200 million in RCS stock.
The purchase price might increase. If Cole Capital performs well, ARCP will receive up to $130 million more from RCS.
ARCP, a New York-based real estate investment trust, said it will use the cash from the transaction to pay off debt.