Global Net Lease to Merge With Modiv Industrial in $535M Deal
The move comes as GNL is limiting its office exposure.
Global Net Lease, a N.Y.-based net-lease REIT, has entered into a definitive merger agreement with Modiv Industrial Inc., a REIT focused on single-tenant net-leased industrial properties, in a $535 million enterprise-value transaction.
The agreement was approved by both companies’ boards of directors and is expected to close in the third quarter of 2026.
This merger reflects GNL’s efforts to diversify its portfolio away from office assets and expand into the industrial sector. The all-stock transaction will provide GNL with Modiv’s portfolio of single-tenant net-leased industrial properties. Upon closing of the deal, GNL will own 89 percent of the combined company, while Modiv will retain an 11 percent stake.
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GNL also plans to pay off Modiv’s existing debt and preferred equity using its Revolving Credit Facility and cash on hand. Modiv’s industrial portfolio has a weighted average lease term of 15 years and 2.4 percent annual rent escalations, which is expected to strengthen GNL’s portfolio.
Modiv’s assets include 8060 Bryan Dairy Road in Largo, Fla. Modiv purchased the nearly 30,000-square-foot property from Salvo Technologies in 2024, according to Yardi Matrix. GNL’s holdings include Executive Mailing Service Headquarters in Palos Hills, Ill. The company acquired the asset from its tenant, Executive Mailing Service, in 2022, the same source shows.
For this transaction, GNL brought on BMO Capital Markets as its financial advisor, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and Greenberg Traurig LLP serving as legal counsel.
Truist Securities is Modiv’s financial advisor while Morrison & Foerster LLP and Venable LLP are the company’s legal counsel.
GNL’s M&A history
Global Net Lease first made its debut on the New York Stock Exchange in 2015. This is not the first time Global Net Lease has expanded through a merger and acquisition deal. In 2016, the company acquired American Realty Capital Global Trust II to create a mega-REIT in a $3.3 billion transaction.
In September 2023, the company merged with The Necessity Retail REIT. The merger had an aggregate real estate asset value of approximately $9.6 billion. Through the deal, GNL acquired 1,350 properties. Last June, the company closed on a $1.8 billion transaction to sell a 99-property, 14 million-square-foot multi-tenant retail portfolio to RCG Ventures LLC. The sale was completed in three phases.
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