American Realty Capital Healthcare Trust III to Pay Final Liquidating Distribution
March 7, 2019 | James Sprow | Blue Vault
On March 5, 2019, the board of directors of American Realty Capital Healthcare Trust III, Inc. (the “Company”) authorized a final liquidating distribution of $2.29 per share of the Company’s common stock to the stockholders of record as of the close of business on March 6, 2019. The final liquidating distribution will be paid on or about March 7, 2019. The final liquidating distribution will be the final distribution made pursuant to a plan of liquidation and dissolution of the Company that was approved by the Company’s stockholders on December 21, 2017 in connection with a purchase agreement dated as of June 16, 2017 to sell substantially all of the Company’s assets to Healthcare Trust, Inc. The closing of the asset sale occurred on December 22, 2017.
The Company paid an initial liquidating distribution of $15.75 per share of the Company’s common stock on January 5, 2018 to stockholders of record as of the close of business on December 22, 2017. After giving effect to the final liquidating distribution, stockholders will have received aggregate liquidating distributions of approximately $18.04 per share.
The Company anticipates that promptly following the final liquidating distribution, it will file its Articles of Dissolution with the State Department of Assessments and Taxation of the State of Maryland, upon which the Company will be legally dissolved and all shares of the Company’s outstanding common stock will be canceled and no longer deemed to be outstanding and all rights of the holders thereof as stockholders will cease and terminate. In addition, the Company will file appropriate notification with the SEC to fully terminate its obligations under the U.S. securities laws.
American Realty Capital Healthcare Trust III, Inc. was formed in April 2014 and broke escrow in its initial public offering in February 2015. The offering closed in December 2015 after raising approximately $167.2 million, including distributions reinvested. Shares were priced at $25.00 per share and $23.75 pursuant to the DRIP. The Company entered into an agreement on June 19, 2017, to sell all 19 properties owned by the Company to Healthcare Trust, Inc. for a purchase price of $120.0 million. The asset sale was closed on December 22, 2017. The total liquidating distributions represent roughly 80% of the original offering price.
On July 18, 2017, the independent directors of the board of directors unanimously approved the July Estimated Per-Share NAV equal to $17.64 based on 6,959,059 shares of common stock outstanding on a fully diluted basis. On January 8, 2018, the REIT published the Revised Estimated Per Share NAV equal to $1.89.
The Company was paying distributions at the rate of $1.56 per annum, beginning March 15, 2015. On July 18, 2017, the distributions were suspended, in light of the asset sale to Healthcare Trust, Inc. and plan of liquidation.
Sources: SEC, Blue Vault