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American Realty Capital Properties to buy $807 million GE Capital portfolio

Fri May 31, 2013 7:51am EDT

(Reuters) - American Realty Capital Properties (ARCP) (ARCP.O) said it would buy an $807 million property portfolio from GE Capital as the U.S. real estate investment trust expands in the net-lease sector where tenants pay most of the operating costs.

The GE Capital deal for 471 net lease properties follows ARCP's plans to purchase CapLease Inc (LSE.N) for about $2.2 billion, including debt, announced earlier this week.

GE Capital's parent General Electric Co (GE.N) said last week it was considering spinning off parts of the financial arm through an initial public offering as part of its plan to reduce the size of the business.

ARCP said it expects to use its currently available debt to fund the deal.

The company said the acquisition would help it to reduce 2013 proforma rental revenue generated by its largest 10 tenants to 36 percent from 60 percent.

The GE Capital portfolio that ARCP plans to acquire include assets net leased to tenants who operate restaurants such as IHOP, Jack in the Box, Golden Corral, Burger King, Taco Bell, Applebee's and Wendy's, the company said.

ARCP's announcements of two deals in a single week follow its failed efforts to buy Cole Credit Property Trust III for $6.7 billion, which would have made it the largest publicly traded REIT in the net-lease sector.

(Reporting by Bijoy Koyitty in Bangalore; Editing by Maju Samuel)

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