CIM Real Estate Finance Trust Sells Shopping Portfolio

Michael Weil and Richard Ressler (AR-Global, CIM-Group)

CIM Real Estate Finance Trust announced Monday that it had reached an agreement to sell all of its shopping centers to American Finance Trust Inc. for $ 1.3 billion.

The deal includes 81 properties anchored with major retail tenants and grocery centers, according to a press release. Upon completion, the New York-based real estate investment trust will have a portfolio that will include over 1,000 properties and 29 million square feet.

Upon completion, American Finance will rename itself to “The Necessity Retail REIT”. The name is an obvious nod to the company’s focus on “necessary retail,” as described in a press release accompanying the deal.

The transaction is expected to close in the first quarter of 2022.

The transaction “represents an important milestone as CMFT sharpens its focus on its core business as a credit REIT, investing primarily in senior secured loans and credit leases,” said Richard Ressler, principal and co-founder of CIM, in a statement.

The acquisition is expected to be financed by a combination of cash, including expected proceeds of $ 261 million from the sale of the American Finance Trust’s Sanofi office, borrowing under the company’s credit facility, real estate debt and $ 53 million in equity issuance the seller.

“This instant off-market, value-add transaction represents a unique opportunity to create value. We are significantly increasing in scope while enhancing our world-class portfolio of pandemic-tested assets on value-adding terms,” ​​said Michael Weil, CEO of American Finance Trust, in a statement.

Upon completion of the transaction, CIM’s credit leasing portfolio is expected to consist of 114 tenant concepts with gross lettable space of around 13.2 million square meters in 45 states. 98 percent of these assets are let. Additionally, the REIT’s senior secured loan portfolio as of September 30, 2021 was $ 1.6 billion.

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