American Realty Capital Global Trust recently acquired two assets – a portfolio of two office buildings in Sunderland, UK and a PPD Global Labs office and laboratory facility in Highland Heights, Kentucky, US.
The properties were acquired for an aggregate purchase price of USD25.6m, exclusive of closing costs. The properties have a weighted average remaining lease term of 10.5 years and were purchased at a weighted average capitalisation rate of 9.4 per cent.
The Northern Rock office buildings are leased to Northern Rock (Asset Management) plc, a UK public company that carries an investment grade credit rating as determined by major credit rating agencies, and holds and services residential mortgages and unsecured loans, as well as government loans, and non-deposit wholesale and secured funding instruments in the UK. These properties serve as Northern Rock's headquarters where operations include back office administration, new sales, customer service, accounting, regulator communications (Ofwat) and bill inquiries.
The PPD Global Labs office and laboratory facility is leased to PPD Global Labs LLC, a contract research organisation that provides testing services for biopharmaceutical companies engaged in clinical drug development. The facility serves as a mission critical research and development centre for product development, post-approval services, drug discovery and lifecycle management services.
Including these recent acquisitions, ARC Global has assembled a USD228.0m portfolio of primarily triple net properties, including USD69.9m of acquired properties, USD79.4m of acquisitions under executed purchase and sale agreements and approximately USD78.7m of acquisitions under executed letters of intent.
"We are pleased to announce the purchase of these high quality real estate assets," says Nicholas S Schorsch (pictured), chairman and chief executive officer of ARC Global. "As ARC Global builds a diversified global portfolio, we continue to execute our European acquisition strategy while identifying strong office, industrial and special purpose net lease assets in the US."