News Alert: General Electric Company (NYSE:GE), Exxon Mobil Corporation (NYSE:XOM)
American Realty Capital Trust IV (ARCT) plans to buy a portfolio of retail properties from General Electric Company(NYSE:GE)’s financial arm, GE Capital, for $1.45 billion (950.6 million pounds).
The U.S. real estate investment trust owned by the American Realty Capital group has said that the purchase would reduce dependence on its top 10 tenants.
The deal will also significantly enhance ARCT’s annualized rental income to about $170 million from $71 million. It will also increase the size of ARCT’s total portfolio to about $2.3 billion.
The deal will be financed with a combination of cash and debt.
On Friday, American Realty Capital Properties Inc had said it would buy U.S. real estate assets from GE Capital for $807 million, while GE had announced that it would sell its Canadian vehicle leasing business for about $553 million.
GE shares climbed 0.0.60 percent to $23.47.
Meanwhile, Total is planning to partner with Exxon Mobil Corporation(NYSE:XOM) and Kuwait Foreign Petroleum Exploration Company (Kufpec) to explore part of its onshore portfolio in South Sudan.
The French explorer has not been active at its 120,000-square kilometre Block B concession in Jonglei state for a very long time, thanks to Sudan’s 22-year-long civil war.
Now Total has decided to team up with ExxonMobil and Kufpec, reportedly on a nudge from the Sudanese government.
Henry Odwar, chairman of South Sudan’s parliamentary committee on energy and mining, said :
“Exxon Mobil and Kufpec have been brought in to be a partner in Block B1.”
Block B2 is likely to be held by the 3 partners while the government is yet to decide about B3.
The government wants to start exploration in Block B1, B2 and B3 soon because of falling reserves in its main producing fields.
Also, due to animosity between the 2 Sudans, the South wants to build alternative pipelines which analysts say is unviable unless there are new oil discoveries.
Tags: Exxon Mobil Corporation (NYSE:XOM), General Electric Company (NYSE:GE)