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Global Net Lease Inc. (NYSE: GNL) announced Wednesday that it has reached a definitive agreement to sell its portfolio of 100 non-core multi-tenant properties to an affiliate of RCG Ventures Holdings LLC for approximately $1.8 billion. The move aligns with GNL’s ongoing strategic shift toward becoming a purely single-tenant real estate investment trust (REIT) and represents a major step in the company’s ongoing deleveraging and portfolio repositioning efforts.

GNL’s Push to Reduce Debt and Optimize Portfolio

The sale forms part of a broader disposition and deleveraging plan GNL launched in 2023, which aims to reduce the company’s overall debt burden, enhance its financial flexibility, and lower its cost of capital. GNL expects that following the completion of this deal, it will have successfully closed or arranged nearly $3 billion in asset dispositions since the beginning of 2024.

As part of the transaction, RCG Ventures has already provided a $25 million non-refundable deposit to GNL at the signing of the binding agreement. The company stated that the transaction is expected to further strengthen its balance sheet, allowing it to focus entirely on its single-tenant leasing strategy while improving financial efficiency.

Legal and Advisory Teams Involved in the Transaction

Multiple prominent law firms are advising both parties in the transaction. GNL has enlisted Paul Weiss Rifkind Wharton & Garrison LLP to guide it through the deal. On the buyer’s side, RCG Ventures is receiving legal counsel from McGuireWoods LLP on matters related to real estate acquisition and financing, while King & Spalding LLP is advising on fund formation and transaction-related legal issues.

Strategic Shift Positions GNL for Long-Term Growth

GNL has been actively repositioning its portfolio to move away from multi-tenant properties and concentrate exclusively on single-tenant net leases, a strategy that the company believes will provide a more stable and predictable revenue stream.

“We believe the proposed sale of our multi-tenant portfolio is a strategic and prudent transaction that will bolster our balance sheet and position GNL for continued success,” the company said in a statement.

The transaction is subject to customary closing conditions and is expected to be finalized later this year.