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Schorsch’s AR Global looking to consolidate $10.5 billion of REITs

April 27, 2016

Schorsch’s AR Global looking to consolidate $10.5 billion of REITs

Move would generate fees and income from 20-year management agreements

Apr 26, 2016 @ 11:30 am | By Bruce Kelly | Investment News

Nicholas Schorsch’s AR Global is attempting to consolidate more than a half dozen real estate investment trusts with almost $10.5 billion in assets, according to two sources with knowledge of the negotiations.

Two REITs, American Finance Trust Inc. and Global Net Lease Inc., would purchase five other real estate companies managed by AR Global, formerly known as AR Capital, according to the two sources familiar with the discussions. Mr. Schorsch and William Kahane are the controlling partners of AR Global, which in turn controls the adviser to each of the seven REITs in the potential roll ups.

Through its advisers, AR Global generates fees and income by acquiring and managing properties on behalf of the REITs, said Brad Thomas, editor of Forbes Real Estate Investor. “The investor doesn’t get paid a fee every time the REIT buys a property, but the management does.”

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.