By CorpGov Editorial Staff
Alternative investment manager Blackwells Capital LLC, a shareholder of both Global Net Lease Inc. (NYSE: GNL) and The Necessity Retail REIT Inc. (NASDAQ: RTL), gave its rationale for supporting a proposed merger of the two.
The combination will result in a pro forma entity with nearly $10 billion in real estate assets, making GNL one of the largest publicly traded net lease REITs, Blackwells said in a statement.
Blackwells said it expects that the increased scale, diversity and efficiency, combined with internalization of management and impressive governance enhancements, will position the company to create immediate and long-term value for all shareholders.
“Blackwells has been engaged in extensive discussions with both GNL and RTL, and has had the opportunity to examine the proposed transaction and its potential benefits to shareholders,” said Jason Aintabi, Chief Investment Officer at Blackwells. “We have reviewed the portfolios in detail, as well as the proposed and possible cost savings, the benefits of internalization and the details of the governance enhancements, and have signed a non-disclosure agreement in order to continue to pursue this important collaboration.”
GNL and RTL didn’t immediately respond to CorpGov‘s requests for comment.