ARC Global Seeks NYSE Listing, Names New Board Chair
- Mar 10, 2015
Calling it an “exciting milestone” for the company and its stockholders, the CEO of American Realty Capital Global Trust, Inc. said it plans to list its common stock on the New York Stock Exchange under the symbol GNL.
If the New York-based REIT gets approval by the NYSE, it could begin trading its common stock by the second quarter. At that time, the firm would also change its name to Global Net Lease, Inc.
Global Trust is a publicly registered, non-traded REIT that focuses on global sale-leaseback properties. It currently owns 295 assets in the United States and Europe, totaling 16 million square feet.
In December, the company’s Board of Directors began evaluating strategic alternatives. The board, along with its financial advisors, Barclays and RCS Capital, determined it was in the company’s best interests to move forward with the listing application.
“The decision to seek a liquidity event by listing on the NYSE marks an exciting milestone for the company and its stockholders,” Global Trust CEO Scott Bowman said in a news release. “The company remains strategically positioned to continue its growth and our U.S. and European management teams look forward to utilizing their expertise to capitalize on further property investments and seek to enhance long-term value for our stockholders.”
The company also announced that P. Sue Perrotty, president & CEO of AFM Financial Services in Cranford, N.J., has been named non-executive chair of the Board of Directors. She replaces William Kahane, who is stepping down as executive chairman but will remain as a director.
Kahane took over as executive chairman on Feb. 11 from Nicholas Schorsch, the embattled former chairman & CEO of American Realty Capital Properties and head of numerous AR Capital-sponsored non-traded REITs, business development corporations and other partnerships. Schorsch, who remains as chairman of the AR Capital investment firm, had resigned in December from ARCP and the boards of 13 companies. Schorsch’s departures came after an accounting scandal was revealed at ARCP in the fall. ARCP had disclosed in late October that there were $23 million in accounting errors that had been intentionally concealed. Last week, ARCP released six quarters of restated financials. ARCP, which has new management, is now operating out of Phoenix as it looks to rebuild from the accounting scandal.
With the pending NYSE listing, a new non-executive chair in place and a new name ready to go, Global Trust is also moving on.
Bowman said Perrotty “brings a wealth of industry knowledge as well as extensive senior leadership to our board, and I am confident she will be an invaluable addition to our team as we seek to continue to create long-term value for our stockholders through the execution of our strategy.”
He said the board now has four directors, three of them independent.
Perrotty said she was excited to join Global Trust’s board.
“The strengths of our investment team coupled with the significant opportunities in this sector, especially in northern and Western Europe, resulting from the economic dislocations across the continent, present an excellent opportunity to invest for yield and absolute return,” she said in the release.
The portfolio, which is fully occupied, has about 60 percent of its assets in the U.S. The remaining geographic allocation is 23 percent in the United Kingdom; 11 percent in Germany and 3 percent each in Finland and the Netherlands.
Moor Park Capital Partners, L.L.P., a private real estate firm based in London, is Global Trust’s partner and European service provider.