Global Net Lease Acquisition to Create $3.3B Mega-REIT

The move will combine two portfolios comprising 23 million square feet.

By Bogdan Odagescu, Associate Editor

ING Bank in Amsterdam, an American Realty Capital Global Trust II property
ING Bank in Amsterdam, an American Realty Capital Global Trust II property

New YorkGlobal Net Lease Inc. (GNL) is set to acquire American Realty Capital Global Trust II, the two companies announced upon both of their board of directors unanimous approval. The acquisition will create a global mega-REIT with an enterprise value of approximately $3.3 billion. Upon closing, Global II shareholders will own a 14 percent slice of the resulting company.

By acquiring the outstanding common stock of Global II for approximately $247 million, GNL will put together two net lease portfolios with a combined 345 properties with 99 tenants. The resulting asset base—with properties in the U.S. and six European countries—will comprise approximately 23 million square feet. The combined occupancy rate of the portfolio is almost 100 percent.

“This transaction represents the realization of our targeted acquisition plan for 2016 and 2017, accelerating our growth,” said Scott Bowman, president & CEO of GNL, in a prepared statement. Global II shareholders will receive 2.27 shares of GNL for every share of their common stock.

UBS Investment Bank served as GNL’s financial advisor, while Shapiro Sher Guinot & Sandler and Proskauer Rose LLP provided legal counsel. BMO Capital Markets and Miles & Stockbridge P.C. assisted Global II with financial and legal counsel, respectively.

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Image courtesy of American Realty Capital Global Trust II