{"id":1004149867,"date":"2016-08-10T02:37:05","date_gmt":"2016-08-10T10:37:05","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004149867"},"modified":"2020-04-15T11:15:54","modified_gmt":"2020-04-15T19:15:54","slug":"gnls-global-ii-acquisition-good-for-future-growth","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/","title":{"rendered":"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019"},"content":{"rendered":"

By Gail Kalinoski<\/em><\/p>\n

\"Scott<\/a>

Scott Bowman, president & CEO, Global Net Lease<\/p><\/div>\n

New York<\/strong>\u2014The head of Global Net Lease said a planned merger<\/a> between GNL and American Realty Capital Global Trust II \u201cbrings together two high quality strategically aligned portfolios and sets a stronger foundation for GNL\u2019s future growth.\u201d The merger would also create a global net lease mega-REIT with a combined enterprise value of $3.3 billion.<\/p>\n

Scott Bowman, GNL president & CEO, made the remarks during a second-quarter earnings call in which he also discussed the announcement that the two net lease REITs would be merging by the fourth quarter if all approvals\u2014including from shareholders of both REITs\u2014are obtained.<\/p>\n

The two firms\u2014GNL, which is publicly traded, and Global II, a non-traded REIT\u2014are both sponsored by AR Global, the New York-based asset management and real estate investment firm run by Nicholas Schorsch and William Kahane.<\/p>\n

InvestmentNews<\/a> described the move as \u201cwidely expected\u201d and noted it had reported in April that AR Global had planned mergers among several of its REITs.<\/p>\n

This week the boards of directors of both GNL and Global II unanimously agreed to the proposed deal which calls for GNL to acquire the outstanding common stock of Global II for about $247 million including assumed debt. The terms call for Global II shareholders to receive 2.27 shares of GNL for each share of Global II stock they own. The all-stock transaction is expected to be tax-free for shareholders. Upon closing, Global II shareholders will own 14 percent of the combined company.<\/p>\n

The deal gives Global II a 45-day go-shop period to solicit alternative proposals. If Global II terminates the agreement it would have to pay $1.2 million to GNL.<\/p>\n

Officials of both REITs said the proposal would benefit both companies and it seems very likely to move forward. It would result in a REIT with a combined asset base of 345 properties in seven countries with 99 tenants comprising 23 million square feet. GNL currently has 329 properties with a total of 18.7 million square feet, 60 percent of which is in the United States and the remaining 40 percent in Europe. Global II owns 16 properties with 4.2 million square feet almost entirely in Europe. Just 4 percent of Global II\u2019s assets are in the U.S. GNL has 100 percent occupancy and Global II is at 99.9 percent occupancy.<\/p>\n

\u201cGlobal II\u2019s disciplined investment philosophy of acquiring high-quality, income-producing properties, long term net-leased to creditworthy tenants, was our foundation, and GNL\u2019s portfolio is highly complementary to this strategy,\u201d Lee Elman, lead independent director of Global II, said in a prepared statement. \u201cAnd the upside potential of owning GNL is significant. GNL is a global company with a strong and flexible capital structure, access to global capital markets, and a low cost of capital.\u201d<\/p>\n

Elman added the transaction would give GNL shareholders \u201ca best in-class international real estate portfolio.\u201d<\/p>\n

Bowman stated during the GNL conference call on Monday that the deal would have many benefits for GNL including increased scale, meaningful synergies and an enhanced portfolio.<\/p>\n

\u201cIncreased scale improves our potential for index inclusions and for supporting our discussions with the rating agencies to secure an investment grade rating, immediately realizable synergies of $5.7 million, including a reduction in fees and reimbursement pay to the advisor of $3.6 million,\u201d Bowman said, according to a transcript<\/a> supplied by SeekingAlpha.com.<\/p>\n

\u201cWe are excited about this transaction as it represents another positive step to position GNL as the premier global net lease company and reinforces our efforts to grow accretive, to grow shareholder value,\u201d he added in the transcript.<\/p>\n

GNL\u2019s management team would run the combined company that will retain its name and continue to trade under the ticker symbol GNL on the New York Stock Exchange. The company began trading its common stock<\/a> on the NYSE in early June 2015. Bowman noted then that the listing was an \u201cimportant milestone\u201d for the REIT and its shareholders. The NYSE listing came about three years after the REIT\u2019s initial public offering in April 2012.<\/p>\n

The merger agreement calls for Global II to appoint one new director to the GNL board, which increases the total number of independent directors to four.<\/p>\n

UBS Investment Bank is the financial advisor to the Special Committee of GNL while Shapiro Sher Guinot & Sandler is serving as legal counsel to the committee. Proskauer Rose LLP is GNL\u2019s legal counsel.<\/p>\n

BMO Capital Markets is financial advisor to the Global II Special Committee and Miles and Stockbridge P.C. is the committee\u2019s legal counsel.<\/p>\n","protected":false},"excerpt":{"rendered":"

Officials of both REITs said the $3.3 billion merger would benefit both companies and it seems very likely to move forward.<\/p>\n","protected":false},"author":1068,"featured_media":1004149802,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,16,21783,23891,1600,21742],"tags":[],"class_list":["post-1004149867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-international","category-investment","category-national","category-new-york","category-latest"],"acf":[],"yoast_head":"\nGNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019 - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019\" \/>\n<meta property=\"og:description\" content=\"Officials of both REITs said the $3.3 billion merger would benefit both companies and it seems very likely to move forward.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-08-10T10:37:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-15T19:15:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"168\" \/>\n\t<meta property=\"og:image:height\" content=\"211\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/\",\"name\":\"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019 - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg\",\"datePublished\":\"2016-08-10T10:37:05+00:00\",\"dateModified\":\"2020-04-15T19:15:54+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg\",\"width\":168,\"height\":211,\"caption\":\"Scott Bowman, president & CEO, Global Net Lease\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\",\"name\":\"Gail Kalinoski\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"caption\":\"Gail Kalinoski\"},\"description\":\"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019 - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/","og_locale":"en_US","og_type":"article","og_title":"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019","og_description":"Officials of both REITs said the $3.3 billion merger would benefit both companies and it seems very likely to move forward.","og_url":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-08-10T10:37:05+00:00","article_modified_time":"2020-04-15T19:15:54+00:00","og_image":[{"width":168,"height":211,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg","type":"image\/jpeg"}],"author":"Gail Kalinoski","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/","url":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/","name":"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019 - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg","datePublished":"2016-08-10T10:37:05+00:00","dateModified":"2020-04-15T19:15:54+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg","width":168,"height":211,"caption":"Scott Bowman, president & CEO, Global Net Lease"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/gnls-global-ii-acquisition-good-for-future-growth\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"GNL\u2019s Global II Acquisition Good for \u2018Future Growth\u2019"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57","name":"Gail Kalinoski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","caption":"Gail Kalinoski"},"description":"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/Scott-Bowman-president-CEO-Global-Net-Lease.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004149867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004149867"}],"version-history":[{"count":2,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004149867\/revisions"}],"predecessor-version":[{"id":1004418382,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004149867\/revisions\/1004418382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004149802"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004149867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004149867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004149867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}