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EX-99.1 - PRESS RELEASE - Phillips Edison & Company, Inc.d363813dex991.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 4, 2012

 

 

PHILLIPS EDISON – ARC SHOPPING CENTER REIT INC.

(Exact name of registrant specified in its charter)

 

 

 

Maryland   000-54691   27-1106076

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

IRS Employer

Identification No.

11501 Northlake Drive

Cincinnati, Ohio 45249

(Address of principal executive offices)

Registrant’s telephone number, including area code: (513) 554-1110

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01. Entry into a Material Definitive Agreement

The information required in Item 1.01 is included in Item 2.01 below and is incorporated by reference herein.

 

Item 2.01. Completion of Acquisition or Disposition of Assets

On June 4, 2012, Phillips Edison – ARC Shopping Center REIT Inc., a Maryland corporation (the “Company”), through a joint venture formed between a group of institutional international investors advised by CBRE Investors Global Multi Manager (the “CBRE Global Investors”) and the Company’s wholly-owned subsidiary (the “Joint Venture”), purchased a shopping center containing 88,720 rentable square feet located on approximately 18.4 acres of land in Kissimmee, Florida (“Vine Street Square”) for approximately $13.7 million, exclusive of closing costs. The Company holds an approximate 54% interest in the Joint Venture and the CBRE Global Investors hold the remaining approximate 46% interest. The Joint Venture funded the purchase price with proceeds of approximately $7.4 million from the Company’s initial public offering and approximately $6.3 million provided by the CBRE Global Investors. Vine Street Square was constructed in 1986. Vine Street Square was purchased from Kimco Kissimmee 613, Inc., a Florida corporation that is not affiliated with the Company, its advisor or its sub-advisor.

Vine Street Square is approximately 98% leased to 26 tenants. The largest tenant at Vine Street Square is Walmart Neighborhood Market, which occupies approximately 36% of the rentable square feet at Vine Street Square. The current aggregate annual effective rent for the tenants of Vine Street Square is approximately $1.2 million and the current weighted-average remaining lease term for the tenants is approximately 7.7 years. The current weighted-average effective rental rate over the lease term, which is calculated as the annualized effective rent divided by the leased rentable square feet, is $10.02 per square foot.

Based on the current condition of Vine Street Square, the Company does not believe that it will be necessary to make significant renovations to Vine Street Square. The Company’s management believes that Vine Street Square is adequately insured.

 

Item 8.01. Other Events

On June 6, 2012, the Company issued a press release announcing the acquisition of Vine Street Square.


Item 9.01. Financial Statements and Exhibits

(a) Financial Statements and Businesses Acquired

Since it is impracticable to provide the required financial statements for the acquired real properties described above at the time of this filing, and no financial statements (audited or unaudited) are available at this time, the Company hereby confirms that it intends to file the required financial statements on or before August 16, 2012, by amendment to this Form 8-K.

(b) Pro Forma Financial Information

See paragraph (a) above

(c) Exhibits

99.1    Press Release dated June 6, 2012


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  PHILLIPS EDISON – ARC SHOPPING CENTER REIT INC.
Dated: June 6, 2012   By:  

  /s/ R. Mark Addy

    R. Mark Addy
    Chief Operating Officer


EXHIBIT INDEX

 

Exhibit
No.

  

Description

Ex. 99.1    Press Release dated June 6, 2012