Global Net Lease (GNL) is merging with US industrial real estate investment trust Modiv Industrial in a $535m (€458m) deal.
NYSE-listed GNL is offering Modiv shareholders 1.975 shares for each share held in a deal that represents a 17% premium to the Modiv stock’s last closing price.
Once the deal completes, existing GNL stockholders are expected to own approximately 89% of the combined company and Modiv stockholders are expected to own approximately 11%.
GNL acquires and manages a global portfolio of income-producing net-lease assets across the US and Western and Northern Europe, while listed peer Modiv focuses on single-tenant net-lease industrial manufacturing real estate in the US.
Michael Weil, CEO of GNL, said: “We believe this transaction is a compelling opportunity for GNL to expedite our transition to earnings growth in 2026 following the completion of our deleveraging initiative while continuing to reduce our office exposure.
“Modiv has thoughtfully assembled a high-quality portfolio of industrial net-lease assets that provide durable and predictable cash flows that align well with our objectives of enhancing earnings and long-term portfolio quality.”
Rob Kauffman, non-executive chairperson of the GNL Board, said: “This is a compelling transaction that we believe strengthens GNL’s portfolio and accelerates our path to long-term earnings growth.
“Modiv’s high-quality net-lease industrial portfolio is an excellent fit for GNL, and we expect this combination will generate meaningful long-term value for stockholders of both companies.”
Aaron Halfacre, president and CEO of Modiv, said: “Over the past year, Modiv attracted substantial interest from a range of suitors, including multiple unsolicited offers, but GNL distinguished itself through the long-term opportunity this transaction creates.
“I personally believe this transaction represents the best opportunity for Modiv investors to not only receive compelling value today – even before considering the tax advantages of a stock-for-stock deal – but allows us the opportunity to participate in future upside as continuing investors in GNL.”
Thomas H Nolan Jr, chairman of the board of Modiv, said: “After a thorough and disciplined review process, our board unanimously determined that this transaction represents the best outcome for our stockholders.
“It is also a clear validation of the strength of our platform and the exceptional execution of our management team, who have built a high-quality portfolio that naturally aligns with a larger, well-capitalised REIT.”
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