American Realty Capital Global Trust II Inc., a publicly registered non-traded investment trust sponsored by AR Capital, acquired two distribution buildings and an office headquarters located in Glasgow, Scotland, United Kingdom from Futurestate Limited for $84.8 million, exclusive of closing costs.
The portfolio contains approximately 873,119 rentable square feet, and is 100 percent leased to William Collins Sons & Company Limited. The lease commenced in August 1990, has a 35-year term and expires in August 2025. The properties serve as the distribution and office headquarters for Harper Collins books in the U.K.
The company funded the acquisition of the property with funds from its initial public offering and a mortgage loan and a mezzanine loan, in an aggregate amount of $85.5 million. The excess funding was utilized on the payment of closing costs.
The company entered into a mortgage debt agreement with Lloyds Bank PLC in the aggregate amount $42.4 million. The mortgage loan provides for quarterly interest payments with all principal outstanding due on October 15, 2019, with an option to extend until October 15, 2020.
The loan bears an interest rate of 2 percent plus 3-month LIBOR per year, which has been fixed to 1.35 percent through an interest rate swap for a total interest rate of 3.35 percent.
In connection with the purchase, the company drew $43.2 million from its mezzanine loan which bears an interest rate of 8.25 percent, payable quarterly, and has a maturity date of August 13, 2017.
In other company news, the REIT’s board of directors appointed Scott Bowman, the company’s chief executive officer, to serve as its president. Bowman will continue to serve as chief executive officer.
American Realty Capital Global Trust II 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.