The Peiffer Wolf Carr & Kane securities attorneys are investigating potential claims and preparing to take action on behalf of investors who invested in a number of real-estate investment trusts controlled by AR Global, a New York-based asset manager. Specifically, AR Global’s American Finance Trust Inc. and Global Net Lease Inc. are expected to acquire five other real estate companies managed by the firm, including Healthcare Trust Inc., Realty Finance Trust Inc., American Realty Capital – Retail Centers of America Inc., American Realty Capital Healthcare Trust III Inc., and American Realty Capital Global Trust II Inc.
However, this proposed consolidation may only be good for management not shareholders. Because the acquiring REITS have unusual, difficult to break 20-year advisory contracts with AR Global, by consolidating the other REITS that do not have the same 20-year advisory contracts, AR Global, as the manager of two larger REITS, would create a larger source of fee revenue over a long period of time, benefiting the managing partners of AR Global not the shareholders.
In fact, a former independent director of two nontraded real estate investment trusts controlled by AR Global claims “a manifest conflict of interest” in the potential merger of the REITs. The independent director went on to further say “I am highly suspect as to whether a merger of RFT into [American Finance Trust] is in the best interest of our shareholders and unless and until we fully analyze our other options, I am concerned about our legal exposure,” and adding that corporate governance at the company was, at best, “shoddy.”
What investors can do
If you invested in any of the above REITs and wish to obtain additional information about our investigation or would like to discuss this matter or your rights, please complete the contact form on this website, or contact Jason Kane or James Booker at 585-310-5140 or by email at firstname.lastname@example.org.
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