Two publicly traded net lease REITs previously targeted by activist investors announced Wednesday that they will merge to create a REIT with nearly $10B in real estate assets.

The company that the merger of Global Net Lease and The Necessity Retail REIT creates will be the third-largest publicly traded net lease REIT in the country, the companies said. The REITs both specialize in sale-leaseback transactions with single tenants.

Operating under the name Global Net Lease, the new entity will own and manage more than 1,350 properties with a real estate asset value estimated at $9.6B, according to a release for the merger.

Through an all-stock deal, GNL will acquire Necessity Retail. Once combined, the new company will internalize management functions, including those now handled by external manager AR Global.

In late 2022, activist investor Blackwells Capital targeted both Global Net Lease and The Necessity Retail REIT, seeking to modify or exit management contracts with AR Global and possibly explore selling the companies. Blackwells claimed that AR Global was charging the companies excessive fees.

Internalizing management is anticipated to result in roughly $54M in cash savings annually for the new company, the release noted.

The chair of the board for Global Net Lease, P. Sue Perrotty, called the merger “an exceptional opportunity to build a premier global net lease portfolio with very attractive future prospects.”

The merger and internalization of management are expected to close in the third quarter.