New York REIT, Inc. announced that AR Capital LLC, the parent of the Company’s sponsor, and Apollo Global Management have mutually agreed to terminate Apollo’s planned $378 million purchase of a controlling interest in a newly formed company, AR Global Investments.
The company would have owned a majority of the ongoing asset management business of AR Capital and allowed Apollo to more than double its real estate assets .
Randolph C. Read, chairman of New York REIT, said “Today’s announcement regarding the termination of the transaction between AR Capital and Apollo in no way affects our resolve to see our previously announced strategic initiatives through to a successful conclusion.”
“The strategic process which we initiated many months ago continues to move forward. We are committed to maximizing long-term shareholder value.”
Separately, the company alsoannounced that its board decided to increase the size by two additional members and that Keith Locker and James Nelson have been appointed to fill the two new slots as additional independent directors of the company. The Board of Directors of NYRT now consists of seven members, five of which are independent.
Locker is the CEO, President and co-founder of Inlet Capital LLC. He has more than 30 years of major national market experience in real estate finance, private investment, capital markets, transaction structuring, and risk management.
Nelson is a director of Icahn Enterprises L.P.