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American Finance Trust to Acquire Retail Portfolio.

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Vincent

MANews-(C)2009-2021

US-based real estate investment trust American Finance Trust, Inc. (NASDAQ: AFIN), through its operating partnership, has entered into a definitive agreement to acquire a portfolio of 81 multi-tenant power, anchored and grocery centers from certain subsidiaries of CIM Real Estate Finance Trust, Inc. for USD 1.3bn, the company said.

This price represents a 7.19% cash capitalization rate.

The company also said that it entered into a definitive agreement to dispose of a non-core portfolio of three office buildings leased to Sanofi S.A. for USD 261m, representing a 6.38% cash capitalization rate and a USD 10m increase from its original purchase price.

Both transactions are expected to close during 1Q22 and the company expects the net financial impact of the transactions will be immediately accretive to AFFO per share.

The acquisition is expected to be funded through a combination, to be determined at closing, of cash, including the anticipated USD 261m of proceeds from the sale of its Sanofi office asset, borrowings under the company's credit facility, property level debt the company will seek to assume and USD 53m of equity issuance to the sellers.

The acquisition is expected to result in...

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