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AR Global to Exit External Management of Global Net Lease and Necessity Retail REIT Amid Merger
- Client News
- May 23, 2023
Paul, Weiss is advising affiliates of AR Global, LLC, in connection with the internalization of management as part of an all-stock merger agreement between Global Net Lease Inc. and The Necessity Retail REIT Inc., creating the third-largest publicly traded net lease REIT with a global presence. The AR Global affiliates currently perform external asset and property management functions for both entities. Under the terms of the transaction, those external management functions will become internally managed by the combined entity, which will operate as Global Net Lease. The post-closing Global Net Lease is expected to own and manage over 1,350 properties and have an aggregate real estate asset value of approximately $9.6 billion.
The AR Global affiliates will receive $325 million in Global Net Lease stock and $50 million in cash; they will own up to 17% of the combined entity. The transactions are expected to close in the third quarter of 2023, subject to the satisfaction of closing conditions and approval by the stockholders of Global Net Lease and Necessity Retail REIT.
The Paul, Weiss team is led by corporate partners Ross Fieldston, Jeffrey Marell and Megan Spelman, and includes corporate partner David Huntington and counsel Justin Fraterman; tax partner Scott Sontag and counsel Sohail Itani; executive compensation partner Lawrence Witdorchic and counsel Reuven Falik; intellectual property partner Charles Googe; and antitrust counsel Marta Kelly.