Public, non-traded real estate investment trust (REIT) American Realty Capital Global Trust II, Inc. (ARC Global Trust II) recently acquired a build-to-suit office building in Luxembourg for $78.6 million, exclusive of closing costs.
Located at 2 Boulevard Konrad Adenauer, the building contains 232,235 rentable square feet, of which, 100 percent is leased to a subsidiary of Deutsche Bank AG. The net-lease expires in December 2023 and contains annual rent escalations plus one 3-year renewal option.
Annualized rental income is about $5.3 million based upon an exchange rate of $1.14 to €1.00, as of May 18, 2015, the date of the acquisition.
ARC Global Trust II funded the acquisition with cash on hand and financing by way of two loans in an aggregate amount of $66.5 million.
The REIT seeks to acquire a portfolio of single tenant net leased commercial real estate properties investing 50 percent of its capital in the U.S. and 50 percent in Europe. It commenced its initial $3.125 billion initial public offering in August 2014 and as of March 31, 2015, had received $107.1 million gross proceeds.