Global Net Lease, The Necessity Retail REIT to Merge, Creating New GNL REIT
Global Net Lease Inc. (GNL) and The Necessity Retail REIT Inc. (RTL) have announced a definitive merger agreement in an all-stock transaction.
Under the agreement, GNL will acquire RTL, and the combined entity will become internally managed. The external asset and property management functions currently performed by affiliates of AR Global, LLC will be internalized. The post-merger company, known as Global Net Lease, is expected to own and manage over 1,350 properties with a total real estate asset value of approximately $9.6 billion.
“The merger of Global Net Lease and The Necessity Retail REIT is an exceptional opportunity to build a premier global net lease portfolio with very attractive future prospects,” said P. Sue Perrotty, chair of the GNL board of directors. The internalization is projected to generate around $54 million in annual cash savings, while the merger is expected to result in approximately $21 million in annual cash savings.