New York City-based Global Net Lease Inc. (NYSE: GNL), a real estate investment trust focused on income producing net lease assets, continued its strategic disposition plan with the sales of The Plant Shopping Center in San Jose, California, for $95 million and the Foster Wheeler office property in Shinfield Park, Reading, United Kingdom, for over $27 million.
GNL said it will use the net proceeds from The Plant Shopping Center sale to pay down its Revolving Credit Facility. GNL subdivided the asset into two separate parcels, bifurcating The Plant Shopping Center from an adjacent single-tenant property. The newly created parcel that GNL retained ownership of is now a core single-tenant property occupied by Home Depot, which has approximately 10 years remaining on the lease, with a 12.5% rental increase every five years.
As for the 366,000-square-foot Foster Wheeler Office property, GNL owned it for nearly eight years and sold the property after the tenant’s lease expired in mid-August, having collected 100% of the rent under the term of the lease. The company said the sale will further reduce its office exposure by approximately 100 bps, decreasing total office exposure to 19% of total portfolio’s straight-line rent.
Michael Weil, CEO of GNL, stated, “We are pleased with the rapid progress of our strategic disposition initiative, successfully building a pipeline of closed and pending dispositions of $854 million at a cash cap rate of 7.2%, within the stated cash cap guidance range of 7% to 8%. This reflects the strong execution of our 2024 business plan across multiple strategic initiatives. We intend to continue using the net proceeds from asset sales to reduce outstanding debt, with a key focus on lowering our Net Debt to Adjusted EBITDA.”
As of Aug. 31, GNL has closed or secured agreements for dispositions totaling $854 million at a cash cap rate of 7.2%1.
Photo of The Plant Shopping Center courtesy of LoopNet
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