American Realty Capital Investor Sues Over Ventas Buyout

An American Realty Capital Healthcare Trust Inc. investor sued to block a proposed $2.6 billion acquisition of the company by Ventas Inc., the biggest health-care real estate investment trust, as it expands its ownership of medical offices and housing for the elderly.

Ventas, based in Chicago, agreed to buy American Realty Capital Healthcare Trust for cash and shares, according to a June 2 statement. Shareholder Ben Schindler sued to block the deal in New York State Supreme Court today, saying the transaction undervalues the company.

Health-care REITs are capitalizing on rising demand for medical services from an aging population in the U.S. Ventas is adding properties in the growing senior-housing and medical-office segments of the real estate market to boost income and payouts to shareholders.

Andrew Backman, a spokesman for New York-based American Realty Capital Healthcare Trust, didn’t immediately respond to a phone call seeking comment on the lawsuit.

The case is Schindler v. Burns, 651761/2014, New York State Supreme Court, New York County (Manhattan).

Before it's here, it's on the Bloomberg Terminal.