American Realty Capital Global Trust, Inc. announced that it had acquired an office building leased to Everything Everywhere (the "Property") located in Merthyr Tydfil, United Kingdom.
The Property was purchased for £8.15 million, excluding acquisition costs, representing a capitalization rate of 9.6% (calculated by dividing annualized rental income on a straight-line basis by base purchase price). The triple-net lease has a remaining lease term of 14.1 years at acquisition and is subject to upward rent adjustments marked to market every five years.
The office building is 100% leased to Everything Everywhere Limited, a mobile network operator and internet service provider, which has an investment grade credit rating as determined by a major credit rating agency. Everything Everywhere is a joint venture between Deutsche Telekom and France Telecom.
"Our third U.K acquisition is our largest to date and adds another strong investment grade credit to our portfolio," stated Nicholas S. Schorsch, Chairman and Chief Executive Officer of ARC Global. Mr. Schorsch continued, "As we expand our European portfolio, it is acquisitions like this one that signify our attention to making purchases that follow our investment objectives of buying single tenant net lease commercial real estate with an eye toward a diversified global portfolio. We maintain our focus on making domestic acquisitions with tenants concentrated in the office and industrial sectors as we continue to find European assets that are highly accretive to our earnings."