10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

	OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 333-177563

American Realty Capital Global Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	45-2771978
(State or other  jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
405 Park Ave., 15th Floor New York, NY	10022
(Address of principal executive offices)	(Zip Code)
(212) 415-6500
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant submitted electronically and posted on its corporate Web Site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o		Accelerated filer o
Non-accelerated filer x	(Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

As of October 31, 2012, the registrant had 254,000 shares of common stock outstanding.

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30, 2012 (Unaudited) and December 31, 2011	2
Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2012, the Period from July 13, 2011 (Date of Inception) to September 30, 2011 and the Period from July 13, 2011 (Date of Inception) to September 30, 2012 (Unaudited)	3
Consolidated Statement of Stockholders' Equity (Deficit) for the Period from July 13, 2011 (Date of Inception) to September 30, 2012 (Unaudited)	4
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2012, the Period from July 13, 2011 (Date of Inception) to September 30, 2011 and the Period from July 13, 2011 (Date of Inception) to September 30, 2012 (Unaudited)	5
Notes to Consolidated Financial Statements (Unaudited)	6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures About Market Risk	25
Item 4. Controls and Procedures	25
PART II - OTHER INFORMATION
Item 1. Legal Proceedings	26
Item 1A. Risk Factors	26
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3. Defaults Upon Senior Securities	27
Item 4. Mine Safety Disclosures	27
Item 5. Other Information	27
Item 6. Exhibits	27
Signatures	28

1

Part I — FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

	September 30, 2012			December 31, 2011
	(Unaudited)
ASSETS
Prepaid expenses and other assets	$	67		$	—
Deferred offering costs	—			559
Total assets	$	67		$	559
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable and accrued expenses	$	2,085		$	375
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding	—			—
Common stock, $0.01 par value, 300,000,000 shares authorized, 31,222 and 22,222 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	—			—
Additional paid-in capital	(1,845		)	200
Accumulated deficit during the development stage	(173		)	(16		)
Total stockholders' equity (deficit)	(2,018		)	184
Total liabilities and stockholders' equity (deficit)	$	67		$	559

The accompanying notes are an integral part of these statements.

2

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

	Three Months Ended			For the Period from July 13, 2011 (date of inception) to September 30, 2011		Nine Months Ended			For the Period from July 13, 2011 (date of inception) to September 30, 2012
	September 30, 2012					September 30, 2012
Revenues	$	—		$	—	$	—		$	—
Expenses:
General and administrative	93			—		157			173
Total expenses	93			—		157			173
Net loss	$	(93	)	$	—	$	(157	)	$	(173	)
Comprehensive loss	$	(93	)	$	—	$	(157	)	$	(173	)

The accompanying notes are an integral part of these statements.

3

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

For the Period from July 13, 2011 (Date of Inception) to September 30, 2012

(In thousands, except for share data)

(Unaudited)

	Common Stock						Accumulated Deficit
	Number of Shares	Par Value		Additional Paid-in Capital			During the Development Stage			Total
Balance, July 13, 2011	—	$	—	$	—		$	—		$	—
Issuance of common stock	22,222	—		200			—			200
Net loss	—	—		—			(16		)	(16		)
Balance, December 31, 2011	22,222	—		200			(16		)	184
Offering costs	—	—		(2,052		)	—			(2,052		)
Share-based compensation	9,000	—		7			—			7
Net loss	—	—		—			(157		)	(157		)
Balance, September 30, 2012	31,222	$	—	$	(1,845	)	$	(173	)	$	(2,018	)

The accompanying notes are an integral part of this statement.

4

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended			For the Period from July 13, 2011 (date of inception) to September 30, 2011		For the Period from July 13, 2011 (date of inception) to September 30, 2012
	September 30, 2012
Cash flows from operating activities:
Net loss	$	(157	)	$	—	$	(173	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	7			—		7
Changes in assets and liabilities:
Prepaid expenses and other assets	(67		)	—		(67		)
Accounts payable and accrued expenses	(8		)	—		8
Net cash used in operating activities	(225		)	—		(225		)
Cash flows from financing activities:
Proceeds from issuance of common stock	—			—		200
Payments of offering costs	(416		)	—		(696		)
Advances from affiliate	641			—		721
Net cash provided by financing activities	225			—		225
Net change in cash	—			—		—
Cash, beginning of period	—			—		—
Cash, end of period	$	—		$	—	$	—
Non-Cash Financing Activities:
Deferred offering costs paid directly by affiliates	$	—		$	—	$	90

The accompanying notes are an integral part of these statements.

5

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

Note 1 — Organization

American Realty Capital Global Trust, Inc. (the “Company”), incorporated on July 13, 2011, is a Maryland corporation that intends to qualify as a real estate investment trust for U.S. federal income tax purposes for the taxable year ending December 31, 2012. On April 20, 2012, the Company commenced its initial public offering ("IPO") on a “reasonable best efforts” basis of up to 150.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to a registration statement on Form S-11 (File No. 333-177563) (the "Registration Statement) filed with the Securities and Exchange Commission ("SEC") under the Securities Act of 1933, as amended. The Registration Statement also covers up to 25.0 million shares of common stock pursuant to a distribution reinvestment plan (the “DRIP”) under which the Company's common stockholders may elect to have their distributions reinvested in additional shares of the Company's common stock.

Until the first quarter following the Company's acquisition of at least $1.2 billion in total investment portfolio assets, the per share purchase price in the IPO will be up to $10.00 per share (including the maximum allowed to be charged for commissions and fees) and shares issued under the DRIP will initially be equal to $9.50 per share, which is 95% of the initial offering price in the IPO. Thereafter, the per share purchase price will vary quarterly and will be equal to the net asset value ("NAV") divided by the number of shares outstanding as of the end of business on the first day of each fiscal quarter after giving effect to any share purchases or repurchases effected in the prior quarter plus applicable commissions and fees, and the per share purchase price in the DRIP will be equal to the NAV per share.

The Company was formed to primarily acquire a diversified portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. The Company’s primary geographic target will be the United States, although up to 40% of its portfolio may consist of properties purchased in Europe and up to an additional 10% may consist of properties purchased elsewhere internationally. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire first mortgage loans secured by real estate. As of September 30, 2012, the Company had not acquired any real estate investments or commenced real estate operations. On October 24, 2012, the Company had raised proceeds sufficient to break escrow in connection with the IPO. The Company purchased its first property and commenced real estate operations on October 30, 2012.

Substantially all of the Company’s business will be conducted through American Realty Capital Global Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP ("OP units"). American Realty Capital Global Special Limited Partner, LLC (the “Special Limited Partner”), an entity wholly owned by AR Capital Global Holdings, LLC (the “Sponsor”) will contribute $200 to the OP in exchange for 22 units of limited partner interest in the aggregate OP ownership, which will represent a nominal percentage of the aggregate OP ownership. After one year, the limited partner interests have the right to convert OP units for the cash value of a corresponding number of shares of common stock or, at the option of the OP, a corresponding number of shares of common stock, as allowed by the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP’s assets.

The Company has no paid employees. American Realty Capital Global Advisors, LLC (the “Advisor”) is the Company’s affiliated advisor, which has been retained to manage the Company’s affairs on a day-to-day basis. The Advisor entered into a service provider agreement with a third party, Moor Park Global Capital Partners LLP (the "Service Provider"), pursuant to which the Service Provider has agreed to provide, subject to the Advisor's oversight, certain real estate related services, including sourcing and structuring of investment opportunities, performance of due diligence, and arranging debt financing and equity investment syndicates with respect to the Company's properties in Europe. The properties will be managed and leased initially by American Realty Capital Global Properties, LLC (the “Property Manager”). Realty Capital Securities, LLC (the “Dealer Manager”) will serve as the dealer manager of the IPO. The Advisor, Property Manager and Dealer Manager are affiliates of the Sponsor and Special Limited Partner. These related parties will receive compensation and fees for services related to the IPO and for the investment and management of the Company’s assets. These entities will receive fees during the offering, acquisition, operational and liquidation stages. Pursuant to the service provider agreement between the Advisor and the Service Provider, the Advisor has agreed to assign 50.0% of the fees payable by the Company under the advisory agreement to the Service Provider, solely with respect to our foreign investment strategy in Europe. The assigned fees will be deducted from the fees payable to the Advisor, pursuant to the service provider agreement.

6

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

Note 2 — Summary of Significant Accounting Policies

The accompanying consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to this Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2012 and for the period from July 13, 2011 (date of inception) to September 30, 2012 are not necessarily indicative of the results for the entire year or any subsequent interim period.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2011, and for the period from July 13, 2011 (date of inception) to December 31, 2011, which are included in the Company's Registration Statement on Form S-11. There have been no significant changes to Company's significant accounting policies during the nine months ended September 30, 2012 other than the updates described below.

Deferred Costs

Deferred costs consist of deferred offering costs. Deferred offering costs represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with registering to sell shares of the Company's common stock. On April 20, 2012, the day the Company commenced its IPO, deferred offering costs were reclassified to stockholders’ equity.

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued guidance that expands the existing disclosure requirements for fair value measurements, primarily for Level 3 measurements, which are measurements based on unobservable inputs such as the Company's own data. This guidance is largely consistent with current fair value measurement principles with few exceptions that do not result in a change in general practice. The guidance was applied prospectively and was effective for interim and annual reporting periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations as the guidance relates only to disclosure requirements.

In June 2011, the FASB issued guidance requiring entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The new guidance does not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. In December 2011, the FASB deferred certain provisions of this guidance related to the presentation of certain reclassification adjustments out of accumulated other comprehensive income, by component in both the statement and the statement where the reclassification is presented. This guidance was applied prospectively and was effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations but changed the location of the presentation of other comprehensive income to more closely associate the disclosure with net income.

In September 2011, the FASB issued guidance that allows entities to perform a qualitative analysis as the first step in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative analysis for impairment is not required. The guidance was effective for interim and annual impairment tests for fiscal periods beginning after December 15, 2011.  The adoption of this guidance did not have a material impact on the Company's financial position or results of operations.

In December 2011, the FASB issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, is not expected to have a material impact on the Company's financial position or results of operations.

7

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the Company's consolidated financial position or results of operations.

Note 3 — Common Stock

As of September 30, 2012 and December 31, 2011, the Company had 31,222 and 22,222 shares of common stock outstanding, including unvested restricted shares, respectively, and had received total proceeds of $0.2 million as of September 30, 2012 and December 31, 2011.

On October 5, 2012, the Company's board of directors authorized and the Company declared, a distribution, which will be calculated based on stockholders of record each day during the applicable period at a rate of $0.00194520550 per day based on $10.00 price per common share. The distributions will begin to accrue 30 days following the Company’s initial property acquisition. The distributions will be payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distributions payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured.

The Company has a Share Repurchase Program (“SRP”) that enables stockholders to sell their shares to the Company. Under the SRP, stockholders may request that the Company repurchase all or any portion, subject to certain minimum amounts described below, of their shares on any business day, if such repurchase does not impair the Company's capital or operations.

After the first quarter following the Company's acquisition of at least $1.2 billion in total investment portfolio assets, the repurchase price for shares under the SRP will be based on NAV. Only those stockholders who purchased their shares from us or received their shares from us (directly or indirectly) through one or more non-cash transactions may be able to participate in the SRP. The repurchase of shares will occur on the last business day of each quarter (and in all events on a date other than a dividend payment date). Purchases under the SRP will be limited in any calendar quarter to 1.25% of the Company's NAV as of the last day of the previous calendar quarter, or approximately 5.0% of the Company's NAV in any 12 month period. If the Company reaches the 1.25% limit on repurchases during any quarter, the Company will not accept any additional repurchase requests for the remainder of such quarter. The SRP will automatically resume on the first day of the next calendar quarter, unless the board of directors determines to suspend the SRP.

Prior to the commencement of the calculation of NAV, the number of shares repurchased may not exceed 5.0% of the weighted average number of shares of common stock outstanding at the end of the previous calendar year and the price per share for repurchases of shares of common stock will be as follows:

• the lower of $9.25 or 92.5% of the price paid to acquire the shares, for stockholders who have continuously held their shares for at least one year;

• the lower of $9.50 and 95.0% of the price paid to acquire the shares for stockholders who have continuously held their shares for at least two years;

• the lower of $9.75 and 97.5% of the price paid to acquire the shares for stockholders who have continuously held their shares for at least three years; and

• the lower of $10.00 and 100.0% of the price paid to acquire the shares for stockholders who have continuously held their shares for at least four years (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock).

Subject to limited exceptions, stockholders who request the repurchase of shares of the Company's common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2.0%.

8

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

When a stockholder requests a repurchase and the repurchase is approved, the Company reclassifies such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP have the status of authorized but unissued shares. As of September 30, 2012, no shares of common stock have been repurchased or were eligible to be repurchased.

Note 4 — Commitments and Contingencies

Litigation

In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company does not own any properties as of September 30, 2012, has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations.

Note 5 —Related Party Transactions

As of September 30, 2012 and December 31, 2011, the Special Limited Partner owned 22,222 shares of the Company's outstanding common stock. The Advisor and its affiliates may incur costs and fees on behalf of the Company. All offering costs incurred by the Company or its affiliated entities on behalf of the Company are reflected in the accompanying balance sheets. As of September 30, 2012 and December 31, 2011, $0.8 million and $0.2 million, respectively, was payable to affiliated entities to fund the payment of third party professional fees and offering costs.

Fees Paid in Connection with the IPO

The Dealer Manager receives fees and compensation in connection with the sale of the Company’s common stock. The Dealer Manager receives selling commissions of up to 7.0% of the per share purchase price of offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Dealer Manager receives 3.0% of the per share purchase price from the sale of our shares, before reallowance to participating broker-dealers, as a dealer-manager fee. The Dealer Manager may re-allow its dealer-manager fee to participating broker-dealers. A participating broker dealer may elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer-manager fees) by such participating broker dealers, with 2.5% thereof paid at the time of the sale and 1.0% paid on each anniversary date of the closing of the sale to the fifth anniversary date of the closing of the sale. If this option is elected, the Dealer Manager’s fee will be reduced to 2.5% (not including selling commissions and dealer manager fees). No such fees have been incurred from the Dealer Manager during the period from July 13, 2011 (date of inception) to September 30, 2012.

The Advisor and its affiliates receive compensation and reimbursement for services relating to the IPO and the investment and management of the Company’s assets. During the period from July 13, 2011 (date of inception) to September 30, 2012, there were $0.7 million of offering cost reimbursements incurred from the Advisor and Dealer Manager. The Company is responsible for offering and related costs from the ongoing offering, excluding commissions and dealer manager fees, up to a maximum of 1.5% of gross proceeds received from its ongoing offering of common stock, measured at the end of the offering. Offering costs in excess of the 1.5% cap as of the end of the offering are the Advisor's responsibility. As of September 30, 2012, offering and related costs exceeded 1.5% of gross proceeds received from the IPO by $2.0 million. After the escrow break, the Advisor has elected to cap cumulative offering costs incurred by the Company, net of unpaid amounts, to 15% of gross common stock proceeds during the offering period. As of September 30, 2012, cumulative offering costs were $2.1 million.

The Company had $0.7 million of accrued expenses payable to the Advisor and the Dealer Manager at September 30, 2012 for services performed related to the IPO and offering and other cost reimbursements. No such amounts were payable as of December 31, 2011.

9

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

Fees Paid in Connection With the Operations of the Company

The Advisor receives an acquisition fee of 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. Solely with respect to investment activities in Europe, the Service Provider will be paid 50% of the acquisition fees and the Advisor will receive the remaining 50%, as set forth in the service provider agreement. Such fees will be deducted from fees payable to the Advisor, pursuant to the service provider agreement. The Advisor is also reimbursed for acquisition costs incurred in the process of acquiring properties, which is expected to be 0.6% of the contract purchase price. In no event will the total of all acquisition fees and acquisition expenses payable with respect to a particular investment exceed 4.5% of the contract purchase price or 4.5% of the amount advanced for a loan or other investment. Once the proceeds from the IPO have been fully invested, the aggregate amount of acquisition fees will not exceed 1.5% of the contract purchase price for all of the assets acquired. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

If the Company’s Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations. Solely with respect to our investment activities in Europe, the Service Provider will be paid 50% of the financing coordination fees and the Advisor will receive the remaining 50%, as set forth in the service provider agreement.  Such fees will be deducted from fees payable to the Advisor, pursuant to the service provider agreement. No financing coordination fees were incurred during the period from July 13, 2012 (date of inception) to September 30, 2012.

The Company will pay the Advisor a monthly fee equal to one-twelfth of 0.75% of the cost of investment portfolio assets (cost will include the purchase price, acquisition expenses, capital expenditures and other customarily capitalized costs, but will exclude acquisition fees). Once the calculation of NAV begins, the asset management fee will be based on the lower of 0.75% of the costs of investment portfolio assets and 0.75% of the quarterly NAV. Such fee to the Advisor will be payable, at the discretion of our board of directors, in cash, common stock, restricted stock grants or any combination thereof. All or a portion of the asset management fee may be waived or deferred at the sole discretion of our board of directors (a) to the extent that FFO, as adjusted, during the six months ending on the last day of the calendar quarter immediately preceding the date that such asset management fee is payable, is less than the distributions declared with respect to such six month period or (b) for any other reason. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

If the Property Manager or an affiliate provides property management and leasing services for properties owned by the Company, the Company will pay fees equal to: (i) with respect to stand-alone, single-tenant net leased properties which are not part of a shopping center, 2.0% of gross revenues from the properties managed and (ii) with respect to all other types of properties, 4.0% of gross revenues from the properties managed. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

For services related to overseeing property management and leasing services provided by any person or entity that is not an affiliate of the Property Manager, we will pay the Property Manager an oversight fee equal to 1.0% of gross revenues of the property managed. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

Solely with respect to our investment activities in Europe, the Service Provider or other entity providing property management services with respect to such investments will be paid: (i) with respect to single-tenant net leased properties which are not part of a shopping center, 1.75% of the gross revenues from such properties and (ii) with respect to all other types of properties, 3.5% of the gross revenues from such properties. The Property Manager will receive 0.25% of the gross revenues from European single-tenant net leased properties which are not part of a shopping center and 0.5% of the gross revenues from all other types of properties, reflecting a 50% split of an Oversight Fee with the Service Provider or an affiliated entity providing European property management services. Such fees will be deducted from fees payable to the Advisor, pursuant to the service provider agreement. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

10

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

Commencing six months after the commencement of the IPO, the Company will reimburse the Advisor’s costs of providing administrative services, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company's operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Additionally, the Company will reimburse the Advisor for personnel costs in connection with other services during the operational stage, in addition to paying an asset management fee; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or real estate commissions. No reimbursement was incurred from the Advisor for providing services during the period from July 13, 2011 (date of inception) to September 30, 2012.

The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of the Company's total return to stockholders, payable annually in arrears, such that for any year in which the Company's total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return but not to exceed 10.0% of the aggregate total return for such year (which will take into account distributions and realized appreciation). This fee will be payable only upon the sale of assets, distributions or other events which results in our return on stockholders’ capital exceeding 6.0% per annum. Solely with respect to our investment activities in Europe, the Service Provider will be paid 50% of the annual subordinated performance fee payable in respect of such investments, and the Advisor or its affiliates will receive the remaining 50%, as set forth in the service provider agreement. No such amounts have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may waive certain fees including asset management and property management fees. Because the Advisor may waive certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor in cash. In certain instances, to improve the Company’s working capital, the Advisor may elect to absorb a portion of the Company’s general and administrative costs or property operating expenses. These absorbed costs are presented net in the accompanying consolidated statements of operations and comprehensive loss. No expenses have been absorbed by the Advisor during the period from July 13, 2011 (date of inception) to September 30, 2012.

Fees Paid in Connection with the Liquidation or Listing of the Company’s Real Estate Assets

The Company will pay a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such amounts have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

If the Company is not simultaneously listed on an exchange, the Company will pay a subordinated participation in the net sales proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of an annual 6.0% cumulative, pre-tax non-compounded return on the capital contributed by investors. The Company cannot assure that it will provide this 6.0% return but the Advisor will not be entitled to the subordinated participation in net sale proceeds unless the Company’s investors have received a 6.0% cumulative non-compounded return on their capital contributions. No such amounts have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

The Company will pay a subordinated incentive listing distribution of 15.0%, payable in the form of a promissory note, of the amount by which the market value of all issued and outstanding shares of the Company's common stock plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax non-compounded annual return to investors. The Company cannot assure that it will provide this 6.0% return but the Advisor will not be entitled to the subordinated incentive listing fee unless investors have received a 6.0% cumulative, pre-tax non-compounded return on their capital contributions. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012. Neither the Advisor nor any of its affiliates can earn both the subordination participation in the net proceeds and the subordinated listing distribution.

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AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

Solely with respect to the Company's properties in Europe, the Service Provider has the right to be paid up to 50.0% of subordinated participation in the net sales proceeds of the sale of real estate assets and 50.0% of subordinated incentive listing distribution relating to such properties. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

Upon termination or non-renewal of the advisory agreement, the Advisor will receive distributions from the OP payable in the form of a promissory note. In addition, the Advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

Note 6 — Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor and its affiliates to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company’s common stock available for issue, as well as other administrative responsibilities for the Company including accounting services and investor relations.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

Note 7 — Share-Based Compensation

Stock Option Plan

 The Company has a stock option plan (the “Plan”) which authorizes the grant of nonqualified stock options to the Company’s independent directors, officers, advisors, consultants and other personnel, subject to the absolute discretion of the board of directors and the applicable limitations of the Plan. The exercise price for all stock options granted under the Plan during the IPO will be $9.00, until the later of the end of the escrow period or the Company's first property acquisition, and thereafter through the termination of the IPO, based on NAV, and thereafter the exercise price for stock options granted to the independent directors will be equal to the fair market value of a share on the last business day preceding the annual meeting of stockholders. A total of 0.5 million shares have been authorized and reserved for issuance under the Plan. As of September 30, 2012, no stock options were issued under the Plan.

Restricted Share Plan

The Company has an employee and director incentive restricted share plan (the “RSP”), which provides for the automatic grant of 3,000 restricted shares of common stock to each of the independent directors, without any further action by the Company’s board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder’s meeting. Restricted stock issued to independent directors will vest over a five-year period following the first anniversary of the date of grant in increments of 20% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company’s directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The fair market value of any shares of restricted stock granted under our restricted share plan, together with the total amount of acquisition fees, acquisition expense reimbursements, asset management fees, financing coordination fees, disposition fees and subordinated distributions by the operating partnership payable to the advisor (or its assignees), shall not exceed (a) 6% of all properties' aggregate gross contract purchase price, (b) as determined annually, the greater, in the aggregate, of 2% of average invested assets and 25% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period, (c) disposition fees, if any, of up to 3% of the contract sales price of all properties that we sell and (d) 15% of remaining net sales proceeds after return of capital contributions plus payment to investors of a 6% cumulative, pre-tax, non-compounded return on the capital contributed by investors. Additionally, the total number of shares of common stock granted under the RSP shall not exceed 5.0% of the Company’s authorized common shares pursuant to the IPO and in any event will not exceed 7.5 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

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AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

(A Maryland Corporation in the Development Stage)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

Restricted share awards entitle the recipient to receive common shares from the Company under terms that provide for vesting over a specified period of time or upon attainment of pre-established performance objectives. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient’s employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in common shares shall be subject to the same restrictions as the underlying restricted shares. As of September 30, 2012, there were 9,000 restricted unvested shares issued to independent directors under the RSP at $9.00 per share. The value of the shares is being expensed over the vesting period of five years. Compensation expense related to restricted stock was approximately $7,000 for the period from July 13, 2011 (date of inception) to September 30, 2012.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. There were no such shares of common stock issued in lieu of cash during the period from July 13, 2011 (date of inception) to September 30, 2012.

Note 8 — Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:

Development Stage Company

On October 24, 2012, the Company raised proceeds sufficient to break escrow in connection with its IPO on a reasonable best efforts basis. The Company received and accepted aggregate subscriptions in excess of the minimum $2.0 million and issued shares of common stock to each of the Sponsor and Moor Park Global Advisors Limited, a subsidiary of the Service Provider, in the amount of $1.0 million at a purchase price of $9.00 per share. The Company purchased its first property and commenced real estate operations on October 30, 2012, and as of such date is no longer considered to be a development stage company.

Sales of Common Stock

As of October 31, 2012, the Company had 0.3 million shares of common stock outstanding, including unvested restricted shares from total proceeds from the IPO of $2.2 million.

Acquisition and Financing

On October 30, 2012, the Company acquired its first property – a McDonald’s restaurant located in Carlisle, United Kingdom for a purchase price of $2.6 million, excluding closing costs. The property contains 9,094 rentable square feet and is 100% leased. The property’s original lease has a 35-year term with 11.4 years remaining. Rent is adjusted to market every five years under the lease. The annualized straight line rental income for the initial lease term is $0.2 million or $24.74 per rentable square foot. On October 30, 2012, the Company entered into a mortgage note payable, collateralized by the McDonald's property, in the amount of $1.2 million. The mortgage note payable provides for quarterly interest payments with all principal outstanding being due on the maturity date in October 2017. The interest rate is fixed with an interest rate swap at 4.08%. The mortgage note payable may be prepaid at any time, in whole or in part, without premium or penalty. In the event of a default, the lender has the right to terminate its obligations and to accelerate the payment on any unpaid principal amount of the mortgage note payable.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the accompanying financial statements of American Realty Capital Global Trust, Inc. and the notes thereto. As used herein, the terms “we,” “our” and “us” refer to American Realty Capital Global Trust, Inc., a Maryland corporation, and, as required by context, to American Realty Capital Global Operating Partnership, L.P., a Delaware limited partnership, which we refer to as the "OP," and to their subsidiaries. American Realty Capital Global Trust, Inc. is externally managed by American Realty Capital Global Advisors, LLC (our “Advisor”), a Delaware limited liability company.

Forward-Looking Statements

Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of American Realty Capital Global Trust, Inc. (the “Company,” “we” “our” or “us”) and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:

• We have a limited operating history and the Advisor has limited experience operating a public company. This inexperience makes our future performance difficult to predict.

• All of our executive officers are also officers, managers and/or holders of a direct or indirect controlling interest in our Advisor, our dealer manager, Realty Capital Securities, LLC (the "Dealer Manager") and other American Realty Capital affiliated entities. As a result, our executive officers, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor’s compensation arrangements with us and other investors advised by American Realty Capital affiliates and conflicts in allocating time among these investors and us. These conflicts could result in unanticipated actions.

• Because investment opportunities that are suitable for us may also be suitable for other American Realty Capital advised programs or investors, our Advisor and its affiliates face conflicts of interest relating to the purchase of properties and other investments and such conflicts may not be resolved in our favor, meaning that we could invest in less attractive assets, which could reduce the investment return to our stockholders.

• After the quarter following our acquisition of at least $1.2 billion in total portfolio assets, the purchase price and repurchase price for our shares will be based on net asset value ("NAV") rather than a public trading market. Our published NAV may not accurately reflect the value of our assets. No public market currently exists, or may ever exist, for shares of our common stock and our shares are, and may continue to be, illiquid.

• If we and our Advisor are unable to find suitable investments, then we may not be able to achieve our investment objectives or pay distributions.

• Our initial public offering of common stock (the "IPO"), which commenced on April 20, 2012, is a blind pool offering and you may not have the opportunity to evaluate our investments before you make your purchase of our common stock, thus making your investment more speculative.

• If we raise substantially less than the maximum offering in our IPO, we may not be able to invest in a diversified portfolio of real estate assets and the value of an investment in us may vary more widely with the performance of specific assets.

• We may be unable to pay or maintain cash distributions or increase distributions over time.

• We are obligated to pay substantial fees to our Advisor and its affiliates.

• We will depend on tenants for our revenue and, accordingly, our revenue is dependent upon the success and economic viability of our tenants.

• Increases in interest rates could increase the amount of our debt payments and limit our ability to pay distributions to our stockholders.

• Our organizational documents permit us to pay distributions from unlimited amounts of any source. Until substantially all the proceeds from our IPO are invested, we may use proceeds from our IPO and financings to fund distributions until we have sufficient cash flow. There are no established limits on the amounts of net proceeds and borrowings that we may use to fund such distribution payments.

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• Any of these distributions may reduce the amount of capital we ultimately invest in properties and other permitted investments and negatively impact the value of your investment.

• We may not generate cash flows sufficient to pay our distributions to stockholders, as such we may be forced to borrow at higher rates or depend on our Advisor to waive reimbursement of certain expenses and fees to fund our operations.

• We are subject to risks associated with the significant dislocations and liquidity disruptions currently occurring in the credit markets of the United States of America and Europe.

• We may fail to qualify, or continue to qualify, to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes, which would result in higher taxes, may adversely affect operations and would reduce our NAV and cash available for distributions.

• We may be deemed to be an investment company under the Investment Company Act of 1940, as amended, and thus subject to regulation under the Investment Company Act of 1940, as amended.

• We do not own any properties as of September 30, 2012.

Overview

We were incorporated on July 13, 2011 as a Maryland corporation that intends to qualify as a REIT for U.S. federal income tax purposes for the taxable year ending December 31, 2012. On April 20, 2012, we commenced our IPO on a “reasonable best efforts” basis of up to 150.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to a registration statement on Form S-11 (File No. 333-177563) (the "Registration Statement) filed with the Securities and Exchange Commission ("SEC") under the Securities Act of 1933, as amended. The Registration Statement also covers up to 25.0 million shares of common stock pursuant to a distribution reinvestment plan (the “DRIP”) under which the Company's common stockholders may elect to have their distributions reinvested in additional shares of our common stock.

Until the first quarter following our acquisition of at least $1.2 billion in total investment portfolio assets, the per share purchase price in the IPO will be up to $10.00 per share (including maximum allowed to be charged for commissions and fees) and shares issued under the DRIP will be initially equal to $9.50 per share, which is 95% of the initial offering price in the IPO. Thereafter, the per share purchase price will vary quarterly and will be equal to NAV divided by the number of shares outstanding as of the end of business on the first day of each fiscal quarter after giving effect to any share purchases or repurchases effected in the prior quarter plus applicable commissions and fees, and the per share purchase price of the DRIP will be equal to the NAV per share.

We were formed to primarily acquire a diversified portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. Our primary geographic target will be the United States, although up to 40% of our portfolio may consist of properties purchased in Europe and up to an additional 10% may consist of properties purchased elsewhere internationally. All such properties may be acquired and operated by us alone or jointly with another party. We may also originate or acquire first mortgage loans secured by real estate. As of September 30, 2012, we had not acquired any real estate investments or commenced real estate operations. On October 24, 2012, we had raised proceeds sufficient to break escrow in connection with the IPO. We purchased our first property and commenced active operations on October 30, 2012.

Substantially all of our business will be conducted through the OP. We are the sole general partner and hold substantially all of the units of limited partner interests in the OP ("OP units"). American Realty Capital Global Special Limited Partner, LLC (the “Special Limited Partner”), an entity wholly owned by AR Capital Global Holdings, LLC (the “Sponsor”) will contribute $200 to the OP in exchange for 22 units of limited partner interest in the OP, which will represent a nominal percentage of the aggregate OP ownership. After one year, the limited partner interests have the right to convert OP units for the cash value of a corresponding number of shares of common stock or, at the option of the OP, a corresponding number of shares of common stock, as allowed by the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP’s assets.

15

We have no paid employees. The Advisor is our affiliated advisor, which has been retained to manage our affairs on a day-to-day basis. The Advisor entered into a service provider agreement with a third party, Moor Park Capital Partners LLP (the "Service Provider"), pursuant to which the Service Provider has agreed to provide, subject to the Advisor's oversight, certain real estate related services, including sourcing and structuring of investment opportunities, performance of due diligence, and arranging debt financing and equity investment syndicates with respect to our properties in Europe. The properties will be managed and leased initially by American Realty Capital Global Properties, LLC (the “Property Manager”). The Dealer Manager will serve as the dealer manager of the IPO. The Advisor, Property Manager and Dealer Manager are affiliates of the Sponsor and Special Limited Partner. These related parties will receive compensation and fees for services related to the IPO and for the investment and management of our assets. These entities will receive fees during the offering, acquisition, operational and liquidation stages. Pursuant to the service provider agreement between the Advisor and the Service Provider, the Advisor has agreed to assign 50% of the fees payable by us under the advisory agreement to the Service Provider, solely with respect to our foreign investment strategy in Europe. Such fees will be deducted from fees paid to the Advisor.

Significant Accounting Estimates and Critical Accounting Policies

Set forth below is a summary of the significant accounting estimates and critical accounting policies that management believes are important to the preparation of our financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by our management. As a result, these estimates are subject to a degree of uncertainty. These significant accounting estimates and critical accounting policies include:

Offering and Related Costs

Offering and related costs include all expenses incurred in connection with our IPO. Offering costs (other than selling commissions and the dealer manager fees) include costs that may be paid by the Advisor, the Dealer Manager or their affiliates on our behalf. These costs include but are not limited to (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Dealer Manager for amounts it may pay to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. We are obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs paid by them on our behalf, provided that the Advisor is obligated to reimburse us to the extent organization and offering costs (excluding selling commissions and the dealer manager fee) incurred by us in our offering exceed 1.5% of gross offering proceeds in the IPO. As a result, these costs are only our liability to the extent aggregate selling commissions, the dealer manager fee and other organization and offering costs do not exceed 11.5% of the gross proceeds determined at the end of the IPO.

Revenue Recognition

Our revenues, which will be derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Since many leases will provide for rental increases at specified intervals, straight-line basis accounting requires us to record a receivable, and include in revenues, unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. We will defer the revenue related to lease payments received from tenants in advance of their due dates.

We will review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located, as applicable. In the event that the collectability of a receivable is in doubt, we will record an increase in the allowance for uncollectible accounts or record a direct write-off of the receivable in the statement of operations.

Real Estate Investments

Upon the acquisition of properties, we will record acquired real estate at cost and make assessments as to the useful lives of depreciable assets. We will consider the period of future benefit of the asset to determine the appropriate useful lives. Depreciation will be computed using the straight-line method over the estimated useful lives of forty years for buildings, fifteen years for land improvements, five years for building fixtures and improvements and the lesser of the useful life or remaining lease term for acquired intangible lease assets and tenant improvements.

Impairment of Long Lived Assets

Operations related to properties that have been sold or properties that are intended to be sold will be presented as discontinued operations in the statement of operations for all periods presented, and properties intended to be sold will be designated as “held for sale” on the balance sheet.

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When circumstances indicate the carrying value of a property may not be recoverable, we will review the asset for impairment. This review will be based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates will consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of the property or properties to be held and used. For properties held for sale, the impairment loss will be the adjustment to fair value less estimated cost to dispose of the asset. These assessments will have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Allocation of Purchase Price of Acquired Assets

We will allocate the purchase price of acquired properties to tangible and identifiable intangible assets acquired based on their respective fair values. Tangible assets will include land, buildings, fixtures and tenant and land improvements on an as-if vacant basis. We will utilize various estimates, processes and information to determine the as-if vacant property value. Estimates of value will be made using customary methods, including data from appraisals, comparable sales, discounted cash flow analysis and other methods. Amounts allocated to land, buildings, improvements and fixtures will be based on cost segregation studies performed by independent third-parties or our analysis of comparable properties in our portfolio. Identifiable intangible assets will include amounts allocated to acquire leases for above- and below-market lease rates, the value of in-place leases, and the value of customer relationships, as applicable.

The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by us in our analysis of in-place lease intangibles will include an estimate of carrying costs during the expected lease-up period for each property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, we will include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period. We also estimate costs to execute a similar lease including leasing commissions, legal and other related expenses.

Above-market and below-market in-place lease values for owned properties will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place lease and management’s estimate of fair market lease rates for the corresponding in-place lease, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease intangibles will be amortized as a decrease to rental income over the remaining term of the lease. The capitalized below-market lease values will be amortized as an increase to rental income over the remaining term and any fixed rate renewal periods provided within the respective leases. In determining the amortization period for below-market lease intangibles, we initially will consider, and periodically evaluate on a quarterly basis, the likelihood that a lessee will execute the renewal option. The likelihood that a lessee will execute the renewal option will be determined by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

The aggregate value of intangible assets related to customer relationship, as applicable, will be measured based on our evaluation of the specific characteristics of each tenant’s lease and our overall relationship with the tenant. Characteristics considered by us in determining these values will include the nature and extent of our existing business relationship with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals, among other factors.

The value of in-place leases is amortized to expense over the initial term of the respective lease. The value of customer relationship intangibles, as applicable, will be amortized to expense over the initial term and any renewal periods in the respective lease, but in no event will the amortization period for intangible assets exceed the remaining depreciable life of a building. If a tenant terminates its lease, the unamortized portion of the in-place lease value and customer relationship intangibles will be charged to expense.

In making estimates of fair values for purposes of allocating purchase price, we will utilize a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. We also will consider information obtained about each property as a result of its pre-acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired and intangible liabilities assumed.

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Derivative Instruments

We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with our operating and financial structure as well as to hedge specific anticipated transactions.

We will record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting.

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued guidance that expands the existing disclosure requirements for fair value measurements, primarily for Level 3 measurements, which are measurements based on unobservable inputs such as our own data. This guidance is largely consistent with current fair value measurement principles with few exceptions that do not result in a change in general practice. The guidance was applied prospectively and was effective for interim and annual reporting periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on our financial position or results of operations as the guidance relates only to disclosure requirements.

In June 2011, the FASB issued guidance requiring entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The new guidance does not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. In December 2011, the FASB deferred certain provisions of this guidance related to the presentation of certain reclassification adjustments out of accumulated other comprehensive income, by component in both the statement and the statement where the reclassification is presented. This guidance was applied prospectively and was effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on our financial position or results of operations but changed the location of the presentation of other comprehensive income to more closely associate the disclosure with net income.

In September 2011, the FASB issued guidance that allows entities to perform a qualitative analysis as the first step in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative analysis for impairment is not required. The guidance was effective for interim and annual impairment tests for fiscal periods beginning after December 15, 2011.  The adoption of this guidance did not have a material impact on our financial position or results of operations.

In December 2011, the FASB issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, is not expected to have a material impact on our financial position or results of operations.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. We do not expect the adoption to have a material impact on our financial position or results of operations.

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Results of Operations

 As of September 30, 2012, we had not commenced active real estate operations. Our management is not aware of any material trends or uncertainties, favorable or unfavorable, other than national economic conditions affecting our targeted portfolio, the retail real estate industry and real estate generally, which may be reasonably anticipated to have a material impact on the capital resources and the revenue or income to be derived from the operation of our assets.

During the period from July 13, 2011 (date of inception) to September 30, 2012, we had incurred general and administrative expense of $0.2 million, which primarily included costs related to professional fees, board member compensation and directors and officers insurance.

Cash Flows for the Period from July 13, 2011 (date of inception) to September 30, 2012

During the period from July 13, 2011 (date of inception) to September 30, 2012, net cash used in operating activities was $0.2 million, mainly due to a net loss of $0.2 million.

Net cash provided by financing activities of $0.2 million during the period from July 13, 2011 (date of inception) to September 30, 2012 consisted primarily of proceeds from affiliates of $0.7 million, primarily to fund third party offering costs, and net proceeds from the sale of common stock of $0.2 million. These cash inflows were partially offset by $0.7 million of payments related to offering costs.

Liquidity and Capital Resources

We are offering and selling to the public in our primary offering up to 150.0 million shares of our common stock, $0.01 par value per share, until the first quarter following our acquisition of at least $1.2 billion in total portfolio assets, at $10.00 per share (including the maximum allowed to be charged for commissions and fees). We are also offering up to 25.0 million shares of our common stock to be issued pursuant to our DRIP under which our stockholders may elect to have distributions reinvested in additional shares. Following our acquisition of at least $1.2 billion in total portfolio assets, the per share purchase price in the IPO will vary quarterly and will be equal to the NAV divided by the number of shares outstanding as of the end of business on the first day of each fiscal quarter after giving effect to any purchases or repurchases effected in the prior quarter plus applicable commissions and fees, and the per share purchase price in the DRIP will be equal to NAV per share.

On October 24, 2012, we had raised proceeds sufficient to break escrow in connection with our IPO. We purchased our first property and commenced active operations on October 30, 2012. As of October 31, 2012, we had 0.3 million shares of common stock outstanding, including unvested restricted shares from total proceeds of $2.2 million. Proceeds from our IPO will be applied to the investment in properties and the payment or reimbursement of selling commissions and other fees and expenses related to our IPO. We will experience a relative increase in liquidity as we receive additional subscriptions for shares and a relative decrease in liquidity as we spend net offering proceeds in connection with the acquisition and operation of our properties or the payment of distributions.

 The number of properties and other assets that we will acquire will depend upon the number of shares sold and the resulting amount of the net proceeds available for investment in properties and other assets. We have not entered into any additional purchase and sale agreements, and there can be no assurance that we will acquire a specific property or other asset. Until required for the acquisition or operation of assets or used for distributions, we will keep the net proceeds of our offering in short-term, low risk, highly liquid, interest-bearing investments.

We intend to maintain the following percentage of the overall value of our portfolio in liquid assets that can be liquidated more readily than properties: 5% of our NAV in excess of $1 billion. However, our stockholders should not expect that we will maintain liquid assets at or above these levels. To the extent that we maintain borrowing capacity under a line of credit, such available amount will be included in calculating our liquid assets. The Advisor will consider various factors in determining the amount of liquid assets we should maintain, including but not limited to our receipt of proceeds from sales of additional shares, our cash flow from operations, available borrowing capacity under a line of credit, if any, our receipt of proceeds from any asset sale, and the use of cash to fund repurchases. The board of directors will review the amount and sources of liquid assets on a quarterly basis.

We intend to make reserve allocations as necessary to aid our objective of preserving capital for our investors by supporting the maintenance and viability of properties we acquire in the future. If reserves and any other available income become insufficient to cover our operating expenses and liabilities, it may be necessary to obtain additional funds by borrowing, refinancing properties or liquidating our investment in one or more properties. There is no assurance that such funds will be available, or if available, that the terms will be acceptable to us.

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Our principal demands for cash will be for acquisition costs, including the purchase price of any properties, loans and securities we acquire, improvement costs, the payment of our operating and administrative expenses, continuing debt service obligations and distributions to our stockholders. Generally, we will fund our acquisitions from the net proceeds of our offering. We intend to acquire our assets with cash and mortgage or other debt, but we also may acquire assets free and clear of permanent mortgage or other indebtedness by paying the entire purchase price for the asset in cash or in units of limited partnership interest in our operating partnership.

We expect to use debt financing as a source of capital. Under our charter, the maximum amount of our total indebtedness shall not exceed 300% of our total “net assets” (as defined by the NASAA REIT Guidelines) as of the date of any borrowing, which is generally expected to be approximately 75% of the cost of our investments; however, we may exceed that limit if approved by a majority of our independent directors and disclosed to stockholders in our next quarterly report following such borrowing along with justification for exceeding such limit. This charter limitation, however, does not apply to individual real estate assets or investments. In addition, it is currently our intention to limit our aggregate borrowings to 45% of the aggregate fair market value of our assets (calculated after the close of our offering and once we have invested substantially all the proceeds of our offering), unless borrowing a greater amount is approved by a majority of our independent directors and disclosed to stockholders in our next quarterly report following such borrowing along with justification for borrowing such a greater amount. This limitation, however, will not apply to individual real estate assets or investments. At the date of acquisition of each asset, we anticipate that the cost of investment for such asset will be substantially similar to its fair market value, which will enable us to satisfy our requirements under the NASAA REIT Guidelines. However, subsequent events, including changes in the fair market value of our assets, could result in our exceeding these limits.

We anticipate that adequate cash will be generated from operations to fund our operating and administrative expenses, continuing debt service obligations and the payment of distributions. However, our ability to finance our operations is subject to some uncertainties. Our ability to generate working capital is dependent on our ability to attract and retain tenants and the economic and business environments of the various markets in which our properties are located. Our ability to sell our assets is partially dependent upon the state of real estate markets and the ability of purchasers to obtain financing at reasonable commercial rates. In general, our policy will be to pay distributions from cash flow from operations. We do not intend to fund such distributions from offering proceeds, however, if we have not generated sufficient cash flow from our operations and other sources, such as from borrowings, advances from our Advisor, the deferral, suspension and/or waiver of fees and expense reimbursements, to fund distributions, we may use the offering proceeds. Moreover, our board of directors may change this policy, in its sole discretion, at any time.

Potential future sources of capital include secured or unsecured financings from banks or other lenders, establishing additional lines of credit, proceeds from the sale of properties and undistributed cash flow. With the exception of a mortgage note payable received in October 2012, we have not identified any additional sources of financing and there is no assurance that such sources of financings will be available on favorable terms or at all.

Acquisitions

Our Advisor evaluates potential acquisitions of real estate and real estate related assets and engages in negotiations with sellers and borrowers on our behalf.  Investors should be aware that after a purchase contract is executed that contains specific terms the property will not be purchased until the successful completion of due diligence and negotiation of final binding agreements. During this period, we may decide to temporarily invest any unused proceeds from common stock offerings in certain investments that could yield lower returns than the properties. These lower returns may affect our ability to make distributions.

Funds from Operations and Modified Funds from Operations

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations ("FFO"), which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to net income or loss as determined under accounting principals generally accepted in the United States ("GAAP").

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property and asset impairment writedowns, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO. Our FFO calculation complies with NAREIT’s policy described above.

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The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or is requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Additionally, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indicators exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated undiscounted future cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges.

Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization and impairments, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. However, FFO and modified funds from operations ("MFFO"), as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

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Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. Management believes these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start up entities also may experience significant acquisition activity during their initial years, we believe that non-listed REITs are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after the acquisition activity ceases. As disclosed in the prospectus for our offering (the “Prospectus”), we will use the proceeds raised in the offering to acquire properties, and intend to begin the process of achieving a liquidity event (i.e., listing of our common stock on a national exchange, a merger or sale or another similar transaction) within three to five years of the completion of the offering. Thus, we will not continuously purchase assets and will have a limited life. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association (“IPA”), an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring our properties and once our portfolio is in place. By providing MFFO, we believe it is presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance after our IPO has been completed and our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance after our IPO and acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of our operating performance after our offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on our operating performance during the periods in which properties are acquired.

We define MFFO, a non-GAAP measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations, or the Practice Guideline, issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we are responsible for managing interest rate, hedge and foreign exchange risk, we do retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such non-recurring gains and losses in calculating MFFO, as such gains and losses are not reflective of ongoing operations.

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Our MFFO calculation complies with the IPA’s Practice Guideline described above. In calculating MFFO, we exclude acquisition related expenses, amortization of above and below market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Under GAAP, acquisition fees and expenses are characterized as operating expenses in determining operating net income. These expenses are paid in cash by us, and therefore such funds will not be available to distribute to investors. All paid and accrued acquisition fees and expenses negatively impact our operating performance during the period in which properties are acquired and will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. Therefore, MFFO may not be an accurate indicator of our operating performance, especially during periods in which properties are being acquired. MFFO that excludes such costs and expenses would only be comparable to that of non-listed REITs that have completed their acquisition activities and have similar operating characteristics as us. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, we view gains and losses from dispositions of assets as non-recurring items and, we view fair value adjustments of derivatives as items which are unrealized and may not ultimately be realized. We view both gains and losses from dispositions of assets and fair value adjustments of derivatives as items which are not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. As disclosed elsewhere in the Prospectus, the purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make distributions to investors. Acquisition fees and expenses will not be reimbursed by our Advisor if there are no further proceeds from the sale of shares in our offering, and therefore such fees and expenses will need to be paid from either additional debt, operational earnings or cash flows, net proceeds from the sale of properties or from ancillary cash flows.

Our management uses MFFO and the adjustments used to calculate it in order to evaluate our performance against other non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors. For example, acquisitions costs are funded from the proceeds of our IPO and other financing sources and not from operations. By excluding expensed acquisition costs, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way. Accordingly, comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of our performance. MFFO has limitations as a performance measure in an offering such as ours where the price of a share of common stock is a stated value and there is no net asset value determination during the offering stage and for a period thereafter. MFFO is useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. FFO and MFFO are not useful measures in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining FFO or MFFO.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO.

We did not have FFO or MFFO for the period from July 13, 2011 (date of inception) to September 30, 2012, as we did not purchase our first property or commence real estate operations until October 30, 2012.

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Distributions

On October 5, 2012, the our board of directors authorized and we declared, a distribution, which is calculated based on stockholders of record each day during the applicable period at a rate of $0.00194520548 per day, based on a price of $10.00 per common share. Our distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured. As of September 30, 2012, we had not paid any distributions. The distributions will begin to accrue 30 days following our initial property acquisition, which occurred on October 30, 2012.

The amount of distributions payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for distribution, our financial condition, capital expenditure requirements, as applicable, requirements of Maryland law and annual distribution requirements needed to qualify and maintain our status as a REIT under the Internal Revenue Code (the "Code"). Distribution payments are dependent on the availability of funds. Our board of directors may reduce the amount of distributions paid or suspended distribution payments at any time and therefore distribution payments are not assured.

Election as a REIT

We intend to elect to be taxed as a REIT under Sections 856 through 860 of the Code, effective for our taxable year ending December 31, 2012. We believe that, commencing with such taxable year, we are organized and operate in such a manner as to qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner to qualify for taxation as a REIT, but no assurance can be given that we will operate in a manner so as to qualify or remain qualified as a REIT. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax to the extent we distribute our REIT taxable income to our stockholders, and so long as we distribute at least 90% of our REIT taxable income. REITs are subject to a number of other organizational and operational requirements. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income.

Inflation

We may be adversely impacted by inflation on any leases that do not contain indexed escalation provisions. In addition, we may be required to pay costs for maintenance and operation of properties which may adversely impact our results of operations due to potential increases in costs and operating expenses resulting from inflation.

Related-Party Transactions and Agreements

We have entered into agreements with affiliates of our Sponsor, whereby we will pay certain fees or reimbursements to our Advisor or its affiliates in connection with acquisition and financing activities, sales of common stock under our offering, asset and property management services and reimbursement of operating and offering related costs. See Note 5 —Related Party Transactions to our financial statements included in this report for a discussion of the various related party transactions, agreements and fees.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements as of September 30, 2012 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

As of September 30, 2012, we had not acquired any real estate investments or commenced real estate operations. We purchased our first property and commenced active operations on October 30, 2012. The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or rates. As of September 30, 2012, we do not have any long-term debt. We obtained our first mortgage notes payable in October 2012 and anticipate incurring additional long-term debt in the future. Our interest rate risk management objectives with respect to our long-term debt will be to limit the impact of interest rate changes in earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps and collars in order to mitigate our interest rate risk with respect to various debt instruments. We would not hold or issue these derivative contracts for trading or speculative purposes. We may also be exposed to foreign currency fluctuations as a result of any investments in foreign operations in Europe and elsewhere internationally. In October 2012, we entered into our first foreign currency hedge contract to limit exposure in a net investment in a foreign operation and may enter into additional foreign currency hedge contracts in the future.

Item 4. Controls and Procedures.

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q and determined that the disclosure controls and procedures are effective.

No change occurred in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended September 30, 2012 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

As of the end of the period covered by this Quarterly Report on Form 10-Q, we are not a party to any material pending legal proceedings.

Item 1A. Risk Factors.

There have been no material changes from the risk factors set forth in our Registration Statement on Form S-11, except for the items described below.

Our officers and directors face conflicts of interest related to the positions they hold with affiliated entities, which could hinder our ability to successfully implement our business strategy and to generate returns to you.

Certain of our executive officers, including Nicholas S. Schorsch, who also serves as the chairman of our board of directors, and Edward M. Weil, Jr., our president, chief operating officer, treasurer, secretary and director, also are officers of our Advisor, our Property Manager, our Dealer Manager and other affiliated entities, including the other real estate programs sponsored by ARC. As a result, these individuals owe fiduciary duties to these other entities and their stockholders and limited partners, which fiduciary duties may conflict with the duties that they owe to us and our stockholders. Their loyalties to these other entities could result in actions or inactions that are detrimental to our business, which could harm the implementation of our business strategy and our investment and leasing opportunities. Conflicts with our business and interests are most likely to arise from involvement in activities related to (a) allocation of new investments and management time and services between us and the other entities, (b) our purchase of properties from, or sale of properties to, affiliated entities, (c) the timing and terms of the investment in or sale of an asset, (d) development of our properties by affiliates, (e) investments with affiliates of our Advisor, (f) compensation to our Advisor, and (g) our relationship with our Dealer Manager and Property Manager. If we do not successfully implement our business strategy, we may be unable to generate cash needed to make distributions to you and to maintain or increase the value of our assets. If these individuals act in a manner that is detrimental to our business or favor one entity over another, they may be subject to liability for breach of fiduciary duty.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Registered Securities.

We did not sell any equity securities that were not registered under the Securities Act of 1933 during the nine months ended September 30, 2012.

On April 20, 2012 we commenced our IPO on a “reasonable best efforts” basis of up to 150.0 million of common stock, pursuant to the Registration Statement on Form S-11 (File No. 333-177563) filed with the SEC under the Securities Act of 1933, as amended.  The Registration Statement also covers up to 25.0 million shares of common stock pursuant the DRIP under which common stock holders may elect to have their distributions reinvested in additional shares of common stock. As of September 30, 2012, we have issued 31,222 shares of our common stock, and received $0.2 million of offering proceeds.

The following table reflects the offering costs associated with the issuance of common stock:

	Nine Months Ended
(In thousands)	September 30, 2012
Selling commissions and dealer manager fees	$	—
Other offering costs	2,052
Total offering costs	$	2,052

The Dealer Manager may reallow the selling commissions and a portion of the dealer manager fees to participating broker-dealers. No such commissions have been incurred from our Dealer Manager during the nine months ended September 30, 2012.

After the escrow break, the Advisor has elected to cap cumulative offering costs incurred by the Company, net of unpaid amounts, to 15% of gross common stock proceeds during the offering period. As of September 30, 2012, we have incurred $2.1 million of cumulative offering costs in connection with the issuance and distribution of our registered securities.

As of September 30, 2012, cumulative offering costs included $0.7 million of offering cost reimbursements incurred from the Advisor and Dealer Manager. Cumulative offering costs exceeded gross proceeds from the sale of common stock by $1.9 million at September 30, 2012, due to the on-going nature of our offering process and that many expenses were incurred before the offering commenced.

We expect to use substantially all of the net proceeds from our IPO to primarily acquire a diversified portfolio of income producing real estate properties, focusing primarily on acquiring freestanding, single-tenant bank branches, convenience stores, office, industrial and retail properties net leased to investment grade and other creditworthy tenants. We may also originate or acquire first mortgage loans secured by real estate. As of September 30, 2012, we do not own any properties.

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We did not repurchase any of our securities during the nine months ended September 30, 2012.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item5. Other Information.

None.

Item6. Exhibits.

The exhibits listed on the Exhibit Index (following the signatures section of this report) are included, or incorporated by reference, in this Quarterly Report on Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.
By:	/s/ Nicholas S. Schorsch
	Nicholas S. Schorsch
	Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer)
By:	/s/ Brian S. Block
	Brian S. Block
	Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Dated: November 9, 2012

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EXHIBITS INDEX

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.	Description
10.7 *	Agreement for the sale of Unit 1 58/62 Scotch Street Carlisle, dated as of October 5, 2012, by and between Liverpool Victoria Friendly Society Limited and ARC MCCARUK001, LLC
10.8 *	Facility Letter, dated October 30, 2012, by and between ARC MCCARUK001, LLC and Santander UK plc
10.9 *	First Amendment to Advisory Agreement between American Realty Capital Global Trust, Inc., American Realty Capital Global Operating Partnership, L.P. and American Realty Capital Global Advisors, LLC, dated November 7, 2012
31.1 *	Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *	Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32 *	Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 *	XBRL (eXtensible Business Reporting Language). The following materials from American Global Trust, Inc.'s Quarterly Report on Form 10-Q for the three months ended September 30, 2012, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Loss, (iii) the Consolidated Statement of Changes in Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements. As provided in Rule 406T of Regulation S-T, this information in furnished and not filed for purpose of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934

_______________________

*    Filed herewith

29

EX-10.7

DATED October 5, 2012

(1) liverpool victoria friendly society limited

(2) arc mccaruk001 llc

AGREEMENT

for the sale of

Unit 1 58/62 Scotch Street

Carlisle

CONTENTS

Clause		Page
1.	DEFINITIONS AND INTERPRETATION	1
2.	SALE AND PURCHASE OF THE PROPERTY	2
3.	COMPLETION	2
4.	STANDARD CONDITIONS	3
5.	COVENANTS FOR TITLE	4
6.	TITLE	4
7.	MATTERS AFFECTING THE PROPERTY	4
8.	COVENANTS TO BE INCLUDED IN THE TRANSFER	4
9.	INSURANCE	4
10.	APPORTIONMENT OF RENT	5
11.	ARREARS	6
12.	LOCAL LAND CHARGES  NOTICES  ORDERS AND OTHER MATTERS	6
13.	REPRESENTATIONS	6
14.	NON-ASSIGNMENT AND NON-MERGER	7
15.	NOTICES	7
16.	VARIATIONS TO THIS AGREEMENT	7
17.	LAW AND JURISDICTION	8
18.	INCORPORATION OF SCHEDULES	8
19.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999	8
20.	CONFIDENTIALITY	8
SCHEDULE 1 - The Property		11
SCHEDULE 2 - Documents to which the Property is sold subject		12
SCHEDULE 3 - Letting Documents		13
SCHEDULE 4 - VAT		15
SCHEDULE 5 - Special Conditions		17

PARTICULARS

DATE	:	2012
SELLER	:	LIVERPOOL VICTORIA FRIENDLY SOCIETY LIMITED an incorporated friendly society with reference 61 COL whose principal office is at County Gates Bournemouth BH1 2NF
BUYER	:	ARC MCCARUK001 LLC a limited liability company registered in the State of Delaware whose registered office is at 2711 Centerville Road Suite 400 Wilmington Delaware 19808 USA
PROPERTY	:	Unit 1 58/62 Scotch Street Carlisle described in more detail in Schedule 1
PRICE	:	ONE MILLION SIX HUNDRED THOUSAND POUNDS (£1,600,000)
COMPLETION DATE	:	30 October 2012 subject to clause 3.5 of this agreement
SELLER'S SOLICITORS	:	Lawrence Graham LLP whose registered office is at 4 More London Riverside London SE1 2AU (Ref: ELM/L563/290)
BUYER'S SOLICITORS	:	Trowers & Hamlins LLP of 3 Bunhill Row London EC1Y 8YZ (Ref: JCA/ARC/01)

THIS AGREEMENT is made on the date and between the parties specified in the Particulars

IT IS AGREED as follows:

1. DEFINITIONS AND INTERPRETATION

1.1 In this agreement unless the context otherwise requires the following terms shall have the following meanings:

"Actual Completion"	the date on which completion of the sale and purchase of the Property pursuant to this agreement actually takes place
"Completion"	the later of the Completion Date and Actual Completion
"Land Registry"	Her Majesty's Land Registry as referred to in section 99 of LRA 2002
"Letting Documents"	the deeds and documents referred to in Schedule 3
"LRA 2002"	the Land Registration Act 2002
"Particulars"	the section at the beginning of this agreement headed "Particulars" which forms part of this agreement (and the definitions set out in the Particulars shall have the meanings specified therein)
"Planning Acts"	the "Consolidating Acts" as defined in the Planning (Consequential Provisions) Act 1990 and any other legislation relating to town and country planning in force from time to time
"Schedule"	a schedule to this agreement
"Standard Conditions"	the Standard Commercial Property Conditions (Second Edition)
"Tenancies"	the tenancies and other rights of occupation arising under or by virtue of the Letting Documents
"Tenants"	the tenants or other occupiers of the Property in whom the Tenancies are vested and references to "Tenant" "relevant Tenant" and "relevant Tenants" shall be construed accordingly
"VAT"	value added tax as referred to in the VAT Act or any tax of a similar nature which may be substituted for or levied in addition to it
"VAT Act"	the Value Added Tax Act 1994
"Working Day"	any day (other than a Saturday or a Sunday) on which clearing banks in the City of London are actually open for banking business during banking hours and references to "Working Days" shall be construed accordingly

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1.2 In this agreement unless the context otherwise requires:

1.2.1 words importing one gender include any other gender and words importing the singular number include the plural number and vice versa and any reference to a person includes a reference to a company authority board department or other body

1.2.2 unless otherwise expressly stated all references to a clause or schedule mean a clause of or schedule to this agreement

1.2.3 any reference to a statute (whether specifically named or not) or a section of a statute shall include any amendment or modification or re-enactment of such statute for the time being in force and all instruments orders notices regulations directions guidance codes of practice bye-laws permissions and plans for the time being made issued or given under or deriving validity from the same

1.2.4 the table of contents and headings and titles to clauses are for convenience only and shall not affect the construction or interpretation of this agreement

1.2.5 unless otherwise expressly stated all references to an Annex mean the Annex (if any) so marked and forming part of this agreement and signed by or on behalf of each of the parties hereto by way of identification

1.2.6 at any time when any party to this agreement comprises two or more persons all references to such party shall include all or any number of such persons and obligations expressed or implied to be made by or with any of them shall be deemed to be made by or with all or any two or more of such persons jointly and each of them severally

1.2.7 any obligation on a party to do any act matter or thing includes an obligation to procure that it be done and any obligation on a party not to do or omit to do any act matter or thing includes an obligation not to permit or suffer such act matter or thing to be done or omitted to be done by any person under its control

2. SALE AND PURCHASE OF THE PROPERTY

2.1 The Seller agrees to sell and the Buyer agrees to buy the Property for the Price

2.2 The consideration for any supply made by the Seller under this agreement is exclusive of any VAT which is or becomes chargeable thereon and if any such sum is or becomes so payable the Buyer shall upon demand pay the same to the Seller

3. COMPLETION

3.1 The purchase of the Property shall be completed on the Completion Date at the offices of the Seller's Solicitors or where they may reasonably direct when the Buyer shall pay the Price (less the Deposit) and any other monies (including any VAT) then payable under the terms of this agreement upon being provided a valid VAT invoice by the Seller

3.2 If:

3.2.1 the money due on completion is received by the Seller's Solicitors' bankers after 3pm or

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3.2.2 completion takes place after 3pm on a Working Day or

3.2.3 takes place on any day other than a Working Day

then for the purpose of Standard Conditions 8.3 and 9.3 the date of Actual Completion shall be deemed to be the next Working Day

3.3 The Buyer shall not be entitled to delay completion solely on the ground that the Seller is unable to provide the appropriate form of discharge or release in relation to any financial charges to which the sale is not subject but will accept an undertaking from the Seller's Solicitors on Completion to remit the completion monies towards the discharge of financial charges (if any) and to send the Buyer the appropriate form of discharge and release immediately upon receipt from the appropriate chargee or chargees

3.4 Unless any monies due to the Seller on exchange or Completion are remitted to the Seller or the Seller's Solicitors from a client account in the name of the Buyer's Solicitors the Seller shall not be obliged to accept such monies (and any such payment shall not be treated as a payment made in accordance with the terms of this agreement) unless the Buyer shall previously have supplied such evidence as shall be required by the Seller or the Seller's Solicitors regarding the identity of the Buyer and the source of its funds for entering into this agreement or completing its purchase of the Property with a view to avoiding any breach of the Money Laundering Regulations 2007 the Terrorism Act 2000 the Financial Services and Markets Act 2000 or the Proceeds of Crime Act 2002 or any subordinate legislation

3.5 In the event that the Buyer wishes to effect the purchase of the Property prior to the 30 October 2012 the Buyer may serve written notice on the Seller and the Seller's Solicitors specifying the date for completion of the purchase of the Property (being not less than three Working Days from the date of service of the notice) ("the Amended Completion Date") in which case for the purposes of this agreement the Completion Date shall be deemed to be the Amended Completion Date

4. STANDARD CONDITIONS

4.1 The Standard Conditions apply to this agreement with the variations set out in this clause but in the event of any conflict between the express terms of this agreement and the Standard Conditions the former shall prevail

4.2 Standard Condition 1.1.1(e) shall be deleted and replaced by the following:

"contract rate" means 3% per annum above the base lending rate for the time being of Barclays Bank plc calculated on a day to day basis"

4.3 In Standard Condition 4.1.4 the words "otherwise than by effluxion of time" shall be added after the words "if the lease ends"

4.4 In Standard Conditions 4.2.4 and 4.2.7(b)(ii) the number "10" shall be replaced by the number "5"

4.5 Standard Conditions 6.1 6.2 6.3.1 6.3.3 and 6.6 shall be deleted

4.6 In Standard Condition 9.3.4 the words "may give notice to the buyer before the date of actual completion that it will" shall be deleted and replaced by the words "shall be entitled to" and the words "if applicable" shall be added to the end of Standard Condition 9.3.4

4.7 Standard Condition 1.4 shall be deleted

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5. COVENANTS FOR TITLE

For the purposes of the Law of Property (Miscellaneous Provisions) Act 1994 the Seller sells with full title guarantee and the transfer of the Property shall be in the form annexed hereto and shall have effect as if it is expressly made subject to all matters covered by clause 11

6. TITLE

6.1 Title to the Property has been deduced to the Buyer's Solicitors before the date of this agreement and the Buyer shall be deemed to have accepted such title and shall not be entitled to raise any objection or requisition concerning such title

6.2 In the event that the Transfer of the Property is one to which the requirement for registration applies pursuant to sections 4 or 5 of LRA 2002 or is a disposition which is required to be completed by registration pursuant to section 27 of LRA 2002 the Buyer shall procure that the Transfer of the Property shall be so registered in accordance with LRA 2002 and shall indemnify and keep indemnified the Seller from and against all actions proceedings costs claims losses and liability arising as a result of any failure to do so

7. MATTERS AFFECTING THE PROPERTY

The Property is sold subject to and (as the case may be) with the benefit of:

7.1 the entries on the Property and Charges Registers of the Title Number(s) referred to in Schedule 1 (except mortgages (if any))

7.2 the documents (if any) specified in Schedule 2

7.3 the Letting Documents

Full details of the above matters have been supplied to the Buyer's Solicitors before the date of this agreement and the Buyer shall be deemed to purchase with full knowledge and notice of them and shall not raise any objection or requisition concerning such matters save in respect of any such matters arising out of the Buyer's pre-completion searches at the Land Registry such searches being those as a prudent buyer would undertake prior to Completion.

8. COVENANTS TO BE INCLUDED IN THE TRANSFER

8.1 The transfer of the Property shall be in the form of the transfer annexed hereto

8.2 The Transfer shall be engrossed by the Seller's Solicitors and executed in original and counterpart

9. INSURANCE

9.1 The Seller shall maintain its existing insurance in force until Completion and cancel the insurance of the Property as soon as practicable after Completion

9.2 In so far as the Seller has been reimbursed by any Tenant with the premium for the insurance of the Property for a period after Completion the Seller shall repay or allow to the relevant Tenant any refund of premium it obtains following the cancellation of such insurance

9.3.1 If on or before Completion the Property is damaged or destroyed by any of the risks insured against by the Seller the following provisions of this clause 9.3 shall apply

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9.3.2 The Seller shall use its reasonable endeavours to procure payment of the insurance monies by the insurers in relation to any such damage or destruction

9.3.3 Subject to clause 9.3.4 all insurance monies actually paid by the insurers to the Seller (excluding payments for loss of rent for any period prior to Completion) shall be held upon trust for the Buyer and paid to the Buyer on Completion

9.3.4 The Seller shall apply any insurance monies received by it prior to Completion (excluding payment for loss of rent for any period prior to Completion) towards the reinstatement or rebuilding of any such damage or destruction only if:

9.3.4.1 and to the extent that there is a contractual obligation on the Seller to do so in any of the Letting Documents or a statutory obligation to do so and then only in liaison with and with the agreement of the Buyer (such agreement not to be unreasonably withheld or delayed) or

9.3.4.2 the Buyer directs the Seller to do so

9.3.5 The Seller shall upon Completion assign all its rights to the proceeds of such claims (except any claims for payments for loss of rent for any period prior to Completion) to the Buyer insofar as the same are assignable and shall notify the insurers upon Completion that all insurance monies are (except as aforesaid) payable to the Buyer and in the meantime the Seller shall not without the prior written consent of the Buyer (such consent not to be unreasonably withheld or delayed) settle or compromise any claim with the insurers

9.4 The Buyer shall not be entitled to refuse to complete the purchase of the Property by reason of damage to or destruction of the Property

10. APPORTIONMENT OF RENT

10.1 In this clause:

10.1.1 "Rent" shall mean all sums reserved as rents (except service charges VAT and insurance premiums) under the Tenancies

10.1.2 "Date of Actual Payment" shall mean the date ten Working Days after the Rent for the relevant Tenancy has been received by the Seller (if such Rent has not been received by the Seller in cleared funds at least two Working Days prior to Actual Completion)

10.2 Rent paid in advance shall be apportioned with effect from Actual Completion so that the Seller shall pay or allow to the Buyer on Completion or (if later) the Date of Actual Payment the total of:

A	x (B + 0.5)
365

for each such Tenancy where:

A (subject to any outstanding rent review) is the annual Rent reserved by that Tenancy at Completion and

B is the number of days from but excluding Actual Completion to but excluding the date when the next instalment of the Rent under that Tenancy is due

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11. ARREARS

11.1 For a period of 6 months following Actual Completion the Buyer shall use all reasonable endeavours to recover from the Tenants any arrears of rent, insurance premiums and any other sums of any description payable by the Tenants at the Property for the period up to and including Actual Completion and within 10 Working Days of receipt of the same shall account to the Seller for the said arrears.

11.2 During the period of 6 months following Actual Completion the Buyer shall give to the Seller monthly updates in writing in respect of the Buyer's progress in collecting the arrears.

11.3 The Seller shall have no right to pursue any arrears nor take any action claim or proceedings against any Tenant if after a period of 6 months from and including Actual Completion the Buyer has not accounted to the Seller for arrears under clause 11.1 and furthermore the Seller shall not be entitled to require that the right to pursue any arrears in respect of the period prior to Actual Completion be assigned by the Buyer to the Seller.

12. LOCAL LAND CHARGES NOTICES ORDERS AND OTHER MATTERS

The Property is sold subject to the following:

12.1 all Local Land Charges whether registered before or after the date of this agreement and all matters capable of registration as Local Land Charges whether coming into existence before or after the date of this agreement

12.2 all notices orders demands proposals or requirements served or made by any local or other public or competent authority or government department whether before or after the date of this agreement

12.3 all actual or proposed orders directions notices charges restrictions conditions agreements or other matters arising under the Planning Acts whether before or after the date of this agreement

12.4 where the whole or part of the Property is registered all matters which are unregistered interests which override registered dispositions under schedule 3 (as amended by schedule 12) of LRA 2002

12.5 all existing wayleave consents rights privileges easements liabilities (including drainage and other service rights or easements) and quasi or reputed easements affecting the Property

12.6 all other matters whatsoever affecting the Property which are capable of discovery by searches or enquiries or by inspection or survey and whether or not such searches or enquiries inspection or survey have in fact been made by or on behalf of the Buyer.

13. REPRESENTATIONS

The Seller and the Buyer acknowledge that this agreement constitutes the entire contract between them to the exclusion of any preceding statement or representation whether oral written or implied or whether contained in any advertisement particulars or other matters issued or in any correspondence entered into by the Seller or its employees or agents with the Buyer or its employees or agents and the Buyer acknowledges that it has not entered into this agreement in reliance upon any such statement or representation other than those (if any) given in

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writing by the Seller's Solicitors in response to written enquiries submitted by the Buyer's Solicitors prior to the date of this agreement

14. NON-ASSIGNMENT AND NON-MERGER

14.1 The Buyer shall not be entitled to transfer the benefit of this agreement

14.2 The Seller shall not be required to transfer the Property in parts or to any person other than the Buyer at the Price

14.3 Despite Completion the provisions of this agreement shall remain in full force and effect in so far as they remain to be observed and performed

14.4 The Buyer shall not sell or otherwise dispose of nor enter into any agreement for sale or other disposition of any interest in the whole or any part or parts of the Property before the expiry of three Working Days after Completion

15. NOTICES

15.1 Any notice to be served on or communication to be sent to any party to this agreement shall be in writing and shall only be regarded as properly served or sent if served or sent to the persons and the addresses specified in clause 15.3 by:

15.1.1 personal delivery on a Working Day or

15.1.2 pre-paid special or recorded delivery mail

15.2 Notices and communications shall be deemed to have been served or received as follows:

15.2.1 in the case of personal delivery on the date of delivery unless delivered after 4 pm (in which case delivery shall be treated as having been made on the next Working Day)

15.2.2 in the case of pre-paid special or recorded delivery mail on the second Working Day after the notice or communication is posted

15.3.1 Notices and communications to the Seller shall be addressed to the Seller's Solicitors at their address and quoting the reference specified in the Particulars

15.3.2 Notices and communications to the Buyer shall be addressed to the Buyer's Solicitors at their address and quoting the reference specified in the Particulars

16. VARIATIONS TO THIS AGREEMENT

16.1 This agreement constitutes the entire contract between the parties and there are no other arrangements between the parties relating to the subject matter of this agreement

16.2 Save as provided in clause 16.3 any variations to this agreement shall be set out in a formal written agreement and signed by the parties agreeing such variations

16.3 Any additional conditions or variations to this agreement which are agreed in correspondence between the parties to this agreement (or their respective solicitors with their authority) must make express reference to this clause (unless a provision in this agreement allows for such additional conditions or variations to be agreed between the parties in which case reference need only be made to the appropriate provision in this agreement) in order to be valid and binding on the parties

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17. LAW AND JURISDICTION

17.1 This agreement is governed by English law and the parties to this agreement submit to the non-exclusive jurisdiction of the English courts

17.2 In this clause 17.2 "Opinion Letter" means a letter from a suitably qualified attorney who is qualified and practices in the country of domicile of the Buyer (or of any one or more party constituting the Buyer) and is not an employee of the Buyer (or of any such party) and which shall be:

17.2.1 in a form prepared at the request and expense of the Buyer but which shall have first been approved by the Seller (such approval not to be unreasonably withheld or delayed) and

17.2.2 addressed to the Seller and (if the Seller so requires) its mortgagee

17.3 If:

17.3.1 the Buyer (or any one or more party constituting the Buyer) is a person who is ordinarily resident outside the United Kingdom or is a company incorporated outside the United Kingdom and

17.3.2 this agreement provides for the Buyer to give covenants in the transfer of the Property

the Buyer shall procure that an Opinion Letter as to the valid execution and enforceability of the transfer shall be given to the Seller by the date two Working Days before the Completion Date and (if the Buyer fails to do so) the Seller shall not be obliged to complete until the second Working Day after the Opinion Letter has been given to the Seller and the Buyer shall be deemed to be in default in performing its obligations under this agreement

18. INCORPORATION OF SCHEDULES

The provisions of the Schedules apply to this agreement

19. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

19.1 Unless the right of enforcement is expressly provided for in this agreement a person who is not a party to this agreement may not by virtue of the Contracts (Rights of Third Parties) Act 1999 enforce any of its terms

19.2 Except to the extent that there is express provision in this agreement to the contrary the parties may by agreement rescind or vary this agreement without the consent of any such person

20. CONFIDENTIALITY

20.1 Subject to clause 20.2 no party to this agreement shall without the prior written consent of each of the others disclose or publish or cause disclosure or publication of the existence and/or financial terms of this agreement and each party shall keep all such information confidential

20.2 The parties to this agreement shall not be prevented from disclosing the existence or financial terms of this agreement:

20.2.1 where disclosure is required in order to comply with a statutory requirement or the requirements of any lawful authority or the rules of the Securities and Exchange

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Commission, the London Stock Exchange or an order of the English court or court of Jersey

20.2.2 to any professional adviser who shall agree to keep such information confidential

20.2.3 in order to notify the Tenants of the completion of the sale and purchase and

20.2.4 by way of a press release including the purchase price and address of the Property but not including:

20.2.4.1 the Seller's identity;

20.2.4.2 any reference to Threadneedle Property Investments Limited or any of its associated companies or any company containing the word "Threadneedle" in its company name; or

20.2.4.3 any reference to Zurich Assurance Limited or any of its associated companies or any company containing the word "Zurich" in its company name.

20.3 The Buyer shall not make an application to Land Registry to enter an agreed notice (as defined in LRA 2002) in respect of this agreement and for the avoidance of doubt the Seller shall not be required to make or consent to the making of an application to Land Registry to enter such an agreed notice and the Buyer acknowledges that the entering into of this agreement by the Seller does not constitute such a consent

20.4 If the Buyer shall make an application to enter a caution against first registration or a unilateral notice (as defined in LRA 2002) in respect of this agreement the Buyer shall not submit to Land Registry either the original or a copy of this agreement

21. CAPITAL ALLOWANCES

21.1 Defined terms

For the purposes of this clause:

21.1.1 CAA 2001 means the Capital Allowances Act 2001

21.1.2 Fixtures means all plant and machinery installed or otherwise fixed in or to the Property and treated in law as part of the same

21.2 No prior claim

The Seller:

21.2.1 warrants that it has not previously made a claim and undertakes that it shall not make a claim for capital allowances under Part 2 of CAA 2001 and

21.2.2 warrants that it is not required to bring a disposal value into account for capital allowances purposes

in respect of any of the Fixtures

22. NOTICES

Any notices to be served on the Buyer under this agreement should be sent to ARC Global Trust Inc.at 405 Park Avenue, 15^th Floor, New York, NY 10022 (for the

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attention of Brian Block) and with a copy to Moor Park Capital Partners LLP at York House 45 Seymour Street  London W1H 7JT (for the attention of Graydon Butler)

SIGNED BY the parties to this agreement or their duly authorised representatives on the Date specified in the Particulars

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SCHEDULE 1

The Property

ALL THAT freehold land and property known as Unit 1 58/62 Scotch Street Carlisle and which is registered at Land Registry with absolute title under Title Number CU46679

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SCHEDULE 2

Documents to which the Property is sold subject

No.	Date	Document	Parties
1.	01.06.1990	Party Wall Agreement	(1)Dunedin Property Development Company (Retail) Limited (2)Liverpool Victoria Trustees Limited

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SCHEDULE 3

Letting Documents

Lease of Unit 1

No.	Date	Document	Parties
1.	21.03.1989	Agreement for lease	(1)Dunedin Property Development Company Limited (2)McDonald's Property Company Limited
2.	29.09.1989	Lease	(1)Liverpool Victoria Trustees Limited (2)McDonald's Property Company Limited
3.	16.01.1990	Licence to alter	(1)Liverpool Victoria Trustees Limited (2)McDonald's Property Company Limited
4.	26.04.1994	Rent review memorandum	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Property Company Limited
5.	17.11.1999	Rent review memorandum	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Property Company Limited
6.	15.01.2003	Licence to sub-underlet	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Property Company Limited (3)McDonald's Restaurants Limited (4)HBN Restaurants Limited
7.	17.01.2003	Deed of variation	(1)McDonald's Restaurants Limited (2)HBN Restaurants Limited (3)Christopher John Nicholls
8.	22.01.2003	Notice of deed of variation
9.	10.12.2003	Licence to assign	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Property Company Limited (3)McDonald's Real Estate Company No. 1 Limited (4)McDonald's Real Estate LLP (5)McDonald's Restaurants Limited
10.	06.02.2004	TP3	(1)McDonald's Property Company Limited

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			(2)McDonald's Real Estate Company No. 1 Limited
11.	06.02.2004	TP3	(1)McDonald's Real Estate Company No. 1 Limited (2)McDonald's Real Estate Limited Liability Partnership
12.	25.03.2004	Notice of assignment
13.	25.11.2004	Rent review memorandum	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Property Company Limited
14.	15.06.2007	Licence to carry out works	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Real Estate LLP (3)McDonald's Restaurants Limited
15.	22.10.2009	Rent review memorandum	(1)Liverpool Victoria Friendly Society Limited (2)McDonald's Property Company Limited

Substation lease

No.	Date	Document	Parties
1.	03.07.1989	Lease	(1)Liverpool Victoria Trustees Limited (2)North Western Electricity Board

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SCHEDULE 4

VAT

1.1 The parties to this agreement intend that Article 5 of the Value Added Tax (Special Provisions) Order 1995 ("the Order") shall apply to the supply of the Property and shall use all reasonable endeavours to secure that under Article 5 of the Order the sale of the Property is treated as neither a supply of goods nor a supply of services for the purposes of VAT

1.2 The Seller warrants and undertakes that:

1.2.1 it (or the representative member of the VAT Group to which the Seller belongs) is registered for VAT purposes and

1.2.2 it has used and will until Actual Completion use the Property for carrying on the business of letting in return for rental income and none of the Tenants are members of the VAT group to which the Seller belongs and

1.2.3 it (or a relevant associate for the purposes of paragraph 3 of Schedule 10 to the VAT Act or a relevant group member for the purposes of paragraph 21 of Schedule 10 to the VAT Act) has exercised the option to tax the Property and notified the option within the allowed time pursuant to Part 1 Schedule 10 to the VAT Act and

1.2.4 the Property is not a capital item to which Part XV of the VAT Regulations 1995 applies, or being such an item, the period of adjustment ascertained in accordance with regulation 114 of the VAT Regulations 1995 has expired

1.3 The Buyer represents warrants and undertakes:

1.3.1 that following Actual Completion the Buyer will use the Property for carrying on the business of letting in return for rental income

1.3.2 that the Buyer is already or as a result of the transfer of the Property will immediately become a taxable person for the purposes of VAT (and if not already registered for VAT purposes will immediately apply to be so registered and will provide the Seller with a copy of the Buyer's application to so register)

1.3.3 to comply in all respects with the provisions of Articles 5(2) and 5(2A) of the Order by submitting by the relevant date (as defined in Article 5(3) of the Order) an option to tax which has effect on or before the relevant date and prior to Completion to provide to the Seller:

1.3.3.1 a copy of the notification of the option to tax;

1.3.3.2 the acknowledgement of receipt of the option to tax by the Commissioners if received by the Buyer prior to Completion

1.3.4 not to revoke the option to tax referred to above or otherwise render it ineffective for the purposes of the transfer of the Property within the terms of Article 5 of the Order

1.3.5 that Article 5(2B) of the Order does not apply to the Buyer

1.3.6 that the Buyer is not purchasing the Property as nominee or otherwise with the intention of holding it for the benefit of another person

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1.4 The Seller and the Buyer shall comply with the provisions of section 49 of the VAT Act and regulations made thereunder in respect of VAT records relating to the business and assets required to be preserved under paragraph 6 of schedule 11 of the VAT Act and whichever party retains the records shall preserve the said records in safe custody for such period as may be required by law

1.5 If on Actual Completion the Buyer has breached any representation or warranty or failed to comply with any undertaking given in paragraph 1.3 of this Schedule, resulting in the supply of the Property being subject to VAT, or the Commissioners have otherwise determined in writing that VAT is payable in respect of the supply of the Property, the Buyer shall on Actual Completion pay to the Seller's Solicitors an amount equal to the VAT on the Price and the Seller shall issue to the Buyer a valid VAT invoice in respect of the taxable supply of the Property (or any part thereof) pursuant to this agreement

1.6 If after Actual Completion the Commissioners determine in writing that VAT is payable in respect of the supply of the Property the Buyer shall pay such VAT in addition to the balance of the Price within seven days of delivery of the Seller's tax invoice in respect thereof together with (and in addition thereto) any amount due to the Commissioners by way of penalty or interest payable by the Seller if the same arise by reason of a breach by the Buyer of a warranty or undertaking in paragraph 1.3 of this Schedule 4

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SCHEDULE 5

Special Conditions

 None

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Signed by                                                         /s/ Neil Bisset

duly authorised for and on behalf of           /s/ Joseph Vullo

THE SELLER                                                    

Signed by                                                         /s/ Jesse C. Galloway

duly authorised for and on behalf of

THE BUYER

APPENDIX 1

FORM OF TRANSFER

EX-10.8

Exhibit 10.8

[Santander Corporate Banking]

To:        ARC MCCARUK001 LLC

(registered in the state of Delaware) (Borrower)

Address:    2711 Centerville Road

Suite 400        

Wilmington        

Delaware

19808 USA

Date:        October 30, 2012

Dear Sirs

1 Facility

This letter sets out the terms and conditions on which the Lender agrees to make available to the Borrower a term loan facility in an amount not exceeding £760,000.

2 Definitions and interpretation

Words and expressions used in this letter are defined in Schedule 1 and this letter shall be construed in accordance with Schedule 1.

3 Purpose

3.1 The Borrower shall apply the Loan towards the purchase of the Property.

3.2 The Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this letter.

4 Conditions of utilisation

4.1 The Borrower may not request the Loan unless the Lender has received all of the documents and other evidence listed in Schedule 2, in a form and substance satisfactory to the Lender.

4.2 The Loan shall not be made unless on the proposed Utilisation Date:

(a) no Default is continuing or would result from the proposed Loan; and

(b) the representations and warranties in clause 15 are true.

4.3 The Loan shall be drawn down as a single advance.

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5 Utilisation

5.1 The Borrower may request the Loan by delivering a notice to the Lender not later than 10 am two Business Days prior to the proposed Utilisation Date (or such other period as the Lender may agree).

5.2 That notice is irrevocable and must specify:

(a) the proposed Utilisation Date (being a Business Day within the Availability Period);

(b) the amount of the Facility to be drawn (which must not exceed £760,000); and

(c) the account to which the Loan should be credited.

6 Repayment

6.1 The Borrower shall repay the Loan in full (together with all other sums outstanding to the Lender under this letter) on or before the Final Repayment Date.

6.2 The Borrower may not reborrow any part of the Facility which is repaid.

7 Illegality, prepayment and cancellation

7.1 If it becomes unlawful for the Lender to perform any of its obligations under this letter or to fund the Loan:

(a) on the Lender notifying the Borrower in writing, the Facility will be immediately cancelled; and

(b) the Borrower shall repay the Loan on the date specified by the Lender (being no earlier than the last day of any applicable grace period permitted by law).

7.2 The Borrower may, if it gives the Lender not less than 5 Business Day's prior written notice, prepay the whole or any part of the Loan (but, if in part, being an amount that reduces the Loan by a minimum amount and an integral multiple of £100,000).

7.3

(a) If:

(i) any sum payable to the Lender by the Borrower is required to be increased under clause 11.1(b); or

(ii) the Lender claims indemnification from the Borrower under clause 12.1,

the Borrower may, whilst the circumstance giving rise to the requirement to pay an increased amount or indemnification continues, give the Lender written notice of its intention to prepay the Loan in full.

(b) On the date specified by the Borrower in a notice under clause 7.3(a), the Borrower shall repay the Loan in full.

7.4

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(a) Any notice of prepayment given under this clause 7 shall be irrevocable and shall specify the date on which the relevant prepayment is to be made and the amount of that prepayment.

(b) Any prepayment under this letter shall be made together with accrued interest on the amount prepaid and any amounts due under clause 13.

(c) The Borrower may not reborrow any part of the Facility which is prepaid.

(d) The Borrower shall not repay or prepay all or any part of the Loan except at the times and in the manner expressly provided for in this letter.

8 Interest

8.1

(a) Interest shall accrue on the Loan for each applicable Interest Period at the percentage rate per annum which is the aggregate of:

(i) the Margin;

(ii) LIBOR; and

(iii) the Mandatory Cost.

(b) The Borrower shall pay accrued interest on the Loan on each Interest Payment Date.

(c) The Lender shall notify the Borrower of the determination of a rate of interest under this letter.

8.2

(c) The first Interest Period for the Loan shall start on the Utilisation Date and end on the first Interest Payment Date thereafter.

(d) Each subsequent Interest Period shall start on the expiry of the previous Interest Period and end on the next Interest Payment Date.

(e) No Interest Period for the Loan shall extend beyond the Final Repayment Date.

8.3 If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is not).

8.4

(a) If the Borrower fails to pay any amount payable by it under a Finance Document on its due date, default interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to clause 8.4(b), is 2 per cent higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted the Loan for successive Interest Periods, each of a duration selected by the Lender (acting reasonably). Any interest accruing under this clause 8.4 shall be immediately payable by the Borrower on demand by the Lender.

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(b) If any overdue amount consists of all or part of the Loan which became due on a day which was not the last day of an Interest Period relating to the Loan:

(i) the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to the Loan; and

(ii) the rate of interest applying to the overdue amount during that first Interest Period shall be 2 per cent higher than the rate which would have applied if the overdue amount had not become due.

(c) Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

8.5

(a) If a Market Disruption Event occurs in relation to the Loan for any Interest Period, then the rate of interest on the Loan for that Interest Period shall be the rate per annum which is the sum of:

(iii) the Margin;

(iv) the rate notified to the Borrower by the Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to the Lender of funding the Loan from whatever source it may reasonably select; and

(v) the Mandatory Cost.

(b) In this letter, Market Disruption Event means that at or about 11 am on the first day of the relevant Interest Period:

(i) the Screen Rate is not available; and

(ii) the Lender (acting reasonably) determines that, by reasons of circumstances affecting the London Interbank Market generally, adequate and fair means do not existing for ascertaining LIBOR for that Interest Period.

(c) If a Market Disruption Event occurs and the Lender or the Borrower so requires, the Lender and the Borrower shall enter into negotiations (for a period of not more than 20 Business Days) with a view to agreeing a substitute basis for determining the rate of interest.

8.6 The Borrower shall ensure that, from the Utilisation Date, Hedging Arrangements are in place (in a form acceptable to the Lender) in respect of not less than 100% of the Loan and that such Hedging Arrangements are maintained for the term of the Facility.

9 Bank accounts

9.1 The Borrower shall maintain with the Lender, a current account in the name of the Borrower designated as "Rent Account" and shall not, without the prior written consent of the Lender (such consent not to be unreasonably withheld, delayed or conditioned), maintain any other bank account, save that the Borrower shall be permitted to open and maintain other bank accounts

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with the Lender that are required to be held pursuant to any additional facility arrangement entered into between the Borrower and the Lender.

9.2 The Borrower shall procure that all Net Rental Income and all other amounts received by the Managing Agent are paid into the Rent Account in cleared funds on or before each Interest Payment Date.

9.3 If, notwithstanding clause 9.2, the Borrower receives any amount otherwise than by credit to the Rent Account or through the Lender, the Borrower shall pay that amount into the Rent Account or to the Lender immediately on receipt and shall, in the meantime, hold that payment subject to the security created by the Finance Documents.

9.4 If the Rent Account is maintained with the Lender:

(d) subject to clause 9.4(b) and to the requirement that any amounts paid into the Rent Account for a particular purpose must be used for that purpose, the Borrower shall have signing rights in relation to the Rent Account and may withdraw any amount from the Rent Account for any purpose;

(e) while a Default is continuing, only the Lender may withdraw sums from the Rent Account;

(f) the Lender may, at any time, apply any monies standing to the credit of the Rent Account in or towards payment of any amount then due and payable to it but unpaid under the Finance Documents;

(g) the Lender shall not be responsible to the Borrower for any non-payment of any liability of the Borrower which could be paid out of moneys standing to the credit of the Rent Account. The Lender shall not be liable to the Borrower for any withdrawal wrongly made if made in good faith; and

(h) the Lender may delegate its powers of withdrawal under this clause 9 to any administrator, receiver and/or manager.

10 Fees

The Borrower shall pay to the Lender a non-refundable arrangement fee of £7,600 on the     Utilisation Date.

11 Tax gross up and indemnities

11.1

(d) The Borrower shall make all payments to be made by it under any Finance Document without any Tax Deduction, unless a Tax Deduction is required by law.

(e) If a Tax Deduction is required by law to be made by the Borrower the amount of the payment due from the Borrower shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

11.2 The Borrower shall pay, and, on demand, indemnify the Lender against any cost, loss or liability the Lender incurs in relation to, all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

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11.3 All amounts payable under a Finance Document by the Borrower shall be deemed to be exclusive of any VAT. If VAT is chargeable, the Borrower shall pay to the Lender (in addition to and at the same time as paying such amount) an amount equal to the amount of the VAT.

12 Increased Costs

12.1

(i) Subject to clause 12.2, the Borrower shall, on demand by the Lender, pay to the Lender the amount of any Increased Costs incurred by the Lender as a result of (i) the introduction of or any change in (or in the interpretation or application of) any law or regulation or (ii) compliance with any law or regulation made after the date of this letter.

(j) In this letter, Increased Costs means:

(i) a reduction in the rate of return from the Facility or on the Lender's overall capital;

(ii) an additional or increased cost; or

(iii) a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by the Lender to the extent that it is attributable to the Lender having entered into the Facility or funding or performing its obligations under any Finance Document.

12.2 Clause 12.1 does not apply to the extent any Increased Cost is:

(a) attributable to a Tax Deduction required by law to be made by the Borrower;

(b) compensated for by the payment of the Mandatory Cost; or

(c) attributable to the wilful breach by the Lender of any law or regulation.

13 Other indemnities

13.1 The Borrower shall, within 3 Business Days of written demand, indemnify the Lender against any cost, loss or liability incurred by it as a result of:

(d) the occurrence of any Event of Default; or

(e) the Loan not being advanced on, or being advanced on a date other than, the Utilisation Date specified in any notice delivered pursuant to clause 5.1 other than as a result of a breach by the Lender of its obligations under this letter.

13.2 The Borrower shall, on demand by the Lender, pay to the Lender the LIBOR Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest Period for the Loan or Unpaid Sum.

13.3 The Lender shall within three Business Days of certification by the Lender, pay to the Rent Account any LIBOR Break Gain.

14 Costs and expenses

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14.1 The Borrower shall pay to the Lender within 3 Business Days of written demand the amount of all costs and expenses (including legal fees and fees in respect of the Valuation) properly incurred by it in connection with:

(a) the negotiation, preparation and execution of this letter and any document referred to in this letter or a Security Document, subject to an overall limit in the amount of £5,250 plus VAT thereon where applicable and disbursements;

(b) any other Finance Document executed after the Utilisation Date; and

(c) any amendment, release, waiver or consent requested by the Borrower in relation to a Finance Document.

14.2 The Borrower shall within 3 Business Days of written demand pay to the Lender the amount of all costs and expenses (including legal fees) incurred by the Lender in connection with enforcement of, or the preservation of any rights under, any Finance Document.

15 Representations

The Borrower makes the representations and warranties set out in this clause 15 to the Lender on the date of this letter and on the Utilisation Date.

15.1

(a) The Borrower is a body corporate, duly incorporated and validly existing under the law of the jurisdiction of its incorporation.

(b) The Borrower has the power to own its assets and carry on its activities as they are being conducted.

15.2 Each Finance Document is in full force and effect and the obligations expressed to be assumed by the Borrower in each Finance Document to which it is a party are legal, valid, binding and enforceable obligations, subject to the Reservations and any qualification set out in any legal opinion or Report addressed to the Lender in connection with the Finance Documents.

15.3 The entry into and performance by the Borrower of, and the transactions contemplated by, the Finance Documents to which it is a party do not and will not conflict with:

(a) any law or regulation applicable to it; or

(b) its constitutional documents (if any).

15.4 The entry into and performance by it of, and the transactions contemplated by, the Finance Documents to which it is a party do not and will not conflict with any agreement or instrument binding on it or any of its assets nor oblige it to create any Security over any of its assets (other than under a Security Document).

15.5 The Borrower has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.

15.6 All Authorisations required:

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(a) to enable the Borrower lawfully to enter into, exercise its rights and comply with its obligations under the Finance Documents to which it is a party; and

(b) to make the Finance Documents to which the Borrower is a party admissible in evidence in its Relevant Jurisdictions,

have been obtained or effected (as appropriate) and are in full force and effect.

15.7 The choice of governing law of the Finance Documents to which it is a party will be recognised and enforced in the Borrower's Relevant Jurisdictions, subject to the Reservations and any qualification set out in any legal opinion or Report addressed to the Lender in connection with the Finance Documents.

15.8 Any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in the Borrower's Relevant Jurisdictions, subject to the Reservations and any qualification set out in any legal opinion or Report addressed to the Lender in connection with the Finance Documents.

15.9 No Event of Default is continuing or is reasonably likely to result from the making of the Loan.

15.10 No litigation, arbitration, administrative or bankruptcy proceedings of or before any court, arbitral body or agency is current or pending or, so far as the Borrower is aware, threatened against it which, if adversely determined, could reasonably be expected to have a Material Adverse Effect.

15.11

(a) In each case save as disclosed in any Certificate of Title:

(i) the Borrower is the sole legal and beneficial owner of, and has good and marketable title to, the Property subject to no Security;

(i) there subsists no breach of any law or regulation which affects or might reasonably be expected to affect the value of the Property;

(ii) there are no covenants, agreements, stipulations, reservations, conditions, interests, rights or other matters whatsoever which affect the Property;

(ii) nothing has arisen or has been created or is subsisting which would be an overriding interest over the Property;

(iii) no facility necessary for the enjoyment and use of the Property is enjoyed on terms entitling any person to terminate or curtail its use; and

(iv) the Borrower has not received notice of any adverse claim by any person in respect of the ownership of the Property or any interest in it, nor has any acknowledgement been given to any person in respect of the Property.

(b) Save as disclosed in any Certificate of Title, all deeds and documents necessary to show good and marketable title to the Property are in the possession of, or held to the order of, the Lender.

15.12 The Borrower is not required to make any deduction for or on account of Tax from any payment it may make under any Finance Document.

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15.13

(a) All information supplied by it to the Lender in connection with the Finance Documents was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it was stated.

(b) All information supplied by or on behalf of the Borrower in connection with the preparation of the Reports was true, complete and accurate in all material respects at the dates supplied.

(c) All statements of fact in the Reports (other than the Certificate of Title) are true and accurate in all material respects.

(d) So far as the Borrower is aware (having made due and careful enquiry), no Report (other than the Certificate of Title) is misleading in any material respect and there is no expression of opinion contained in, or any conclusion reached in, any Report (other than the Certificate of Title) which is not fair and reasonable.

(e) So far as the Borrower is aware (having made due and careful enquiry), nothing has occurred or come to light since the date of any Report (other than the Certificate of Title) which renders any material facts contained in that Report (other than the Certificate of Title) inaccurate or misleading or which makes any of the opinions or conclusions contained in the relevant Report (other than the Certificate of Title) unfair or unreasonable.

(f) The Borrower has read the Certificate of Title and is not aware of any material omission or inaccuracy in the Certificate of Title.

15.14 The Repeating Representations are deemed to be repeated by the Borrower on each Interest Payment Date, by reference to the facts and circumstances then existing.

16 Information undertakings

The undertakings in this clause 16 remain in force from the date of this letter for so long as any amount is outstanding under the Finance Documents or the Facility is available for drawing.

16.1 The Borrower shall supply to the Lender as soon as the same become available, but in any event within 270 days after the end of each of its financial years its (unaudited) financial statements for that financial year.

16.2 The Borrower shall procure that each set of financial statements delivered under clause 16.1:

(c) is prepared using GAAP and accounting practices and financial reference periods consistent with those applied in the preparation of the first set of financial statements provided under clause 16.1; and

(d) give a true and fair view (if audited) or fairly present (if unaudited) of its financial condition as at the end of, and results of operations for, the period to which they relate.

16.3 The Borrower shall supply to the Lender:

(a) all documents despatched by the Borrower to its creditors generally, at the same time as they are despatched;

9

(b) promptly on becoming aware of them, the details of any litigation, arbitration, administrative or bankruptcy proceedings which are current, threatened or pending against it and which, if adversely determined, are likely to have a Material Adverse Effect;

(c) immediate notification of any notice received by it under section 146 of the Law of Property Act 1925 or any proceedings commenced or steps taken against it for the forfeiture of any lease under which it holds an interest in the Property;

(d) (unless otherwise agreed in writing by the Lender) no later than 28 days following the end of each Interest Payment Date, a quarterly monitoring report containing such information in respect of the Property and each Occupational Lease as the Lender shall reasonably require such report to be in a form acceptable to the Lender, but to include, without limitation, the following information:

(iv) the name of the tenant, or occupier;

(v) the rent, service charge, VAT and any other payments payable and (separately) paid in that Quarter;

(vi) details of any rent or service charges arrears;

(vii) details of any rent review agreed or in progress during that Quarter and any rent review which will fall to be determined in the following Quarter;

(viii) details of any expiry, termination or surrender or any notice of expiry, termination or surrender given by the tenant;

(ix) details of any new lettings and licences proposed;

(x) details of any new insurance claims and the progress of existing insurance claims;

(xi) details of any dispute between the Borrower and any tenant or occupier of the Property which, if adversely determined, would have or is reasonably likely to have a Material Adverse Effect;

(xii) details of any sinking fund in respect of the Property;

(xiii) details of any proposed disposal of the Property (including negotiations for the grant of any Occupational Lease); and

(xiv) details of all irrecoverable expenditure incurred or to be incurred by the Borrower in respect of the Property) in excess of £10,000; and

(e) such further information regarding the business and operations of the Borrower, the Property or the financial condition of the Borrower as the Lender may reasonably request.

16.4 The Borrower shall notify the Lender if any person becomes a member of the Borrower or ceases to be a member of the Borrower.

16.5 The Borrower shall notify the Lender of any Default (and the steps, if any, being taken to remedy it) on becoming aware of its occurrence.

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16.6 The Borrower shall supply to the Lender a Compliance Certificate within 28 days of each Interest Payment Date setting out (in reasonable detail) computations as to compliance with the financial covenants set out in clause 17.

17 Financial covenants

17.1 So long as any amount is outstanding under the Finance Documents or the Facility is available for borrowing the Borrower shall ensure that:

(e) in respect of each Relevant Period, Annual Rent shall be at least 200 per cent of Annual Interest Costs; and

(f) at all times the Loan shall not exceed 60 per cent of the Market Value of the Property.

17.2 The covenant in clause 17.1(a) shall be tested on each Interest Payment Date. The covenant in clause 17.1(b) shall be tested annually by reference to the then most recent Valuation received by the Lender.

17.3 If, following a Valuation, the Borrower is in breach of clause 17.1(b), the Borrower shall within 20 Business Days of the date on which it is notified by the Lender of the breach, prepay the Loan in an amount sufficient to ensure compliance with clause 17.1(b). Clause 7.2(b) shall not apply to any prepayment made under this clause 17.3.

17.4

(c) The Borrower shall within 3 Business Days of written demand pay the costs of the initial Valuation supplied under clause 4.1 and any Valuation requested in accordance with clauses 17.4(b) and 17.4(c).

(d) The Lender may request a Valuation no more than once in each three year period.

(e) Notwithstanding clause 17.4(b), the Lender may request a Valuation at any time if:

(i) a Default is outstanding; or

(ii) subject to clause 17.4(f), a Default is reasonably anticipated at the date of the request; and/or

(iii) the Borrower proposes to sell or otherwise dispose of all or any part of the Property.

(f) The Lender may call for a Valuation at any time at its own cost.

(g) The Borrower shall provide all reasonable assistance to a Valuer to enable it to carry out a Valuation.

(h) If the Lender requests a Valuation pursuant to clause 17.4(c)(ii) and the Valuation does not reveal the existence of a Default, in the event that the Lender has requested a Valuation more than once pursuant to clause 17.4(b) or 17.4(c) in the previous three years the cost of the Valuation shall be for the Lender's account.

18 General undertakings

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The undertakings in this clause 18 remain in force from the date of this letter for so long as any amount is outstanding under the Finance Documents or the Facility is available for borrowing.

18.1 The Borrower will comply with all laws and regulations applicable to it if failure so to comply has or is reasonably likely to have a Material Adverse Effect.

18.2 The Borrower will not, without the prior written consent of the Lender, (whether by a single transaction or a series of related or unrelated transactions and whether at the same time or over a period of time) sell, transfer, lease or otherwise dispose of any of its Charged Assets or agree to do so save that the Borrower may, in the ordinary course of trading, dispose of those Charged Assets charged by way of floating charge only.

18.3

(i) The Borrower shall not create or permit to subsist any Security over any of its assets other than Permitted Security.

(j) The Borrower shall procure that its payment obligations under the Finance Documents rank at least pari passu with the claims of all other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

18.4 The Borrower will not, without the prior written consent of the Lender (such consent not to be unreasonably withheld, delayed or conditioned) form or acquire any Subsidiary or subscribe for shares in any company.

18.5 The Borrower will not incur or permit to be outstanding any Financial Indebtedness, other than:

(a) amounts due under any Finance Document;

(b) any other Financial Indebtedness to which the Lender has given its prior written consent;

(c) Subordinated Loans;

(d) any other Financial Indebtedness which the Lender has made available to the Borrower; and

(e) other Financial Indebtedness not exceeding £5,000 in aggregate in any financial year.

18.6 The Borrower will not without the prior written consent of the Lender redesignate all or any part of any member's capital contribution as a loan.

18.7 The Borrower shall not, without the prior written consent of the Lender:

(a) grant or agree to grant any new Occupational Lease;

(b) agree to any amendment or waiver or surrender or take any action which may lead to forfeiture in respect of any existing Occupational Lease;

(c) grant any licence or right to occupy any part of the Property;

(d) (such consent not to be unreasonably withheld, delayed or conditioned where the Borrower may not unreasonably withhold its consent) consent to any assignment or

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subletting or sub-lease of any lessee's or tenant's interest under any Occupational Lease; or

(e) (except where required to do so under the terms of the relevant Occupational Lease) agree to any rent review in respect of any Occupational Lease.

18.8

(c) The Borrower shall not appoint any Managing Agent of the Property other than Moor Park Capital Partners LLP except with the consent of, and on terms approved by, the Lender (such consent not to be unreasonably withheld, delayed or conditioned).

(d) The Borrower shall procure that each Managing Agent shall on its appointment enter into a Duty of Care Deed and acknowledge to the Lender that it has notice of the Security created by the Security Documents and that it agrees to pay all Net Rental Income received by it into the Rent Account in cleared funds on or before each Interest Payment Date without withholding, set off or counterclaim.

(e) The Borrower shall not terminate the appointment of any Managing Agent without the consent of the Lender (such consent not to be unreasonably withheld, delayed or conditioned).

18.9 The Borrower shall not change its accounting reference period without the prior written consent of the Lender (such consent not to be unreasonably withheld, delayed or conditioned).

18.10

(g) The Borrower shall effect:

(i) insurance of its assets in accordance with paragraph 6.14 of the CML Lenders' Handbook save that the insurance shall be for the full reinstatement value of the Property which shall be deemed to be the value of that Property as specified in the most recent Valuation;

(ii) insurance against acts of terrorism; and

(iii) insurance against 3 years loss of rent,

all such insurances to be in amount and in a form and with an insurance company or underwriters acceptable to the Lender (acting reasonably).

(h) The Borrower will procure that the Lender is either joint insured or, if so agreed by the Lender, noted as mortgagee and loss payee on each such insurance policy and that every such policy shall contain:

(i) a standard mortgagee clause whereby such insurance shall not be vitiated or avoided as against a mortgagee in the event or as a result of any misrepresentation, act or neglect or failure to make disclosure on the part of the insured party or any circumstance beyond the control of the insured party; and

(ii) terms providing that it shall not be invalidated so far as the Lender is concerned for failure to pay any premium due without the insurer first giving to the Lender not less than 10 Business Days' notice.

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(i) The Borrower will promptly on request supply copies of its Insurances and will notify the Lender of new policies, renewals made and material variations or cancellations of policies made or, to the knowledge of the Borrower, threatened or pending.

(j) The Borrower shall not do or permit to be done anything which may make void or voidable any of the Insurances.

(k) The Borrower shall promptly pay all premiums and do all other things necessary to keep all of the Insurances.

(l) If the Borrower fails to comply with any of the provisions of this clause 18.10, the Lender shall immediately be entitled to effect the Insurances concerned at the expense of the Borrower.

(m) Subject to clause 18.10(h), the Borrower shall apply all monies received or receivable under any Insurance (other than any insurance in respect of third party liability) towards replacing, restoring or reinstating the relevant asset. Any proceeds of insurance received by the Borrower shall, pending any such replacement, restoration or reinstatement, be credited to the Rent Account.

(n) To the extent that any Insurance and any Occupational Lease does not restrict the proceeds of insurance under that policy being used to prepay the Loan, the proceeds of insurance shall:

(i) if at the relevant time an Event of Default has occurred and is continuing; or

(ii) at any other time if the Lender requests or requires it in writing,

be used to prepay the Loan.

18.11 The Borrower shall use all reasonable endeavours to obtain as soon as practicable from each landlord under any lease pursuant to which the Borrower holds an interest in the Property, an acknowledgement addressed to the Lender confirming that such landlord will provide the Lender with 14 days' prior written notice of its intention to serve a notice under section 146 of the Law of Property Act 1925 or to take any other steps to forfeit or terminate such lease.

19 Events of Default

Each of the events or circumstances set out in this clause 19 is an Event of Default.

19.1 The Borrower does not pay on the due date any amount pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless its failure to pay is caused by an administrative or technical error and payment is made within 3 Business Days of its due date.

19.2 Any of the provisions in clauses 8.6, 16, 17.1(a), 17.3, 18.2, 18.3, 18.5, and 18.9 are not complied with.

19.3

(a) The Borrower does not comply with any provision of the Finance Documents (other than clause 17.1(b) and those provisions referred to in clauses 19.1 and 19.2).

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(b) No Event of Default under clause 19.3(a) will occur if the failure to comply is capable of remedy and is remedied within ten Business Days of the Lender giving written notice to the Borrower or the Borrower becoming aware of the failure to comply.

19.4

(f) Any representation or statement made or deemed to be made by the Borrower in any Finance Document or any other document delivered by or on behalf of the Borrower under or in connection with any Finance Document is or proves to have been incorrect or misleading when made or deemed to be made.

(g) No Event of Default under clause 19.4(a) will occur if the failure to comply is capable of remedy and is remedied within ten  Business Days of the Lender giving written notice to the Borrower or the Borrower becoming aware of the failure to comply.

19.5 Any Financial Indebtedness of the Borrower (other than any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents) is not paid when due nor within any originally applicable grace period or is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

19.6 Any demand is made by a creditor in respect of any Financial Indebtedness of the Borrower (other than any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents) which is incurred pursuant to an on demand facility (however described).

19.7 The Borrower is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness (other than any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents).

19.8

(a) Any corporate action, legal proceedings or other procedure or step is taken in relation to or with a view to:

(i) the suspension of payments, a moratorium of any indebtedness of the Borrower (other than any such action taken in respect of any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents);

(ii) winding-up, dissolution, administration, bankruptcy or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower;

(iii) a composition, assignment or arrangement with any creditor of the Borrower (other than any such action taken in respect of any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents);

(iv) the appointment of a receiver, administrative receiver, compulsory manager or other similar officer in respect of the Borrower or any of its assets (other than any such action taken in respect of any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents);

(v) the appointment of a liquidator, administrator, administrative receiver or other similar officer in respect of the Borrower; or

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(vi) enforcement of any Security over any assets of the Borrower (other than any such action taken in respect of any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents),

or any analogous procedure or step is taken in any jurisdiction.

19.9 Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of the Borrower and is not discharged within 10 Business Days (other than any such action taken in respect of any Financial Indebtedness due to the Lender other than pursuant to the Finance Documents).

19.10 Any part of the Property is destroyed or is damaged to a material extent such that, taking into account the actually recoverable or recovered proceeds of insurance effected under the Finance Documents, in the opinion of the Lender, the destruction or damage will have a Material Adverse Effect.

19.11 It is or becomes unlawful for the Borrower to perform any of its obligations under the Finance Documents.

19.12 All or any part of the Property is compulsorily purchased.

19.13 Any person, other than the Lender, commits any breach of, or omits to observe, any of the obligations expressed to be assumed by such person under the Subordination Deed.

19.14 The entire issued share capital of the Borrower ceases to be legally and beneficially owned by the Shareholder.

19.15 Any event or series of events or any circumstances whether related or not occurs or circumstances arise which has or is reasonably likely to have a Material Adverse Effect.

19.16 On and at any time after the occurrence of an Event of Default which is continuing the Lender may, by notice to the Borrower:

(a) cancel the Facility, at which time it shall immediately be cancelled; and/or

(b) declare that all or part of the Loan, together with accrued interest, and all other amounts accrued under the Finance Documents be immediately due and payable, at which time they shall become immediately due and payable; and/or

(c) declare that all or part of the Loan be payable on demand, at which time it shall immediately become payable on demand by the Lender,

and at any time thereafter the Lender may, without prejudice to its rights under the Security Documents, enforce any or all of the Security Documents.

20 Changes to the parties

20.1 The Lender may:

(k) assign any of its rights; or

(l) transfer by novation any of its rights and obligations,

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under the Finance Documents to any Qualifying Lender and the Borrower shall promptly take (at the cost of the Lender) all steps necessary or desirable to facilitate any such assignment or transfer.

20.2 The Lender may disclose to any person:

(c) to (or through) whom the Lender assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations under this letter;

(d) with (or through) whom the Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, this letter or the Borrower;

(e) to whom, and to the extent that, information is required to be disclosed by any applicable law or regulation; or

(f) who is an Affiliate of the Lender,

any information about the Borrower and the Finance Documents as the Lender shall consider appropriate provided that, in each case, any person to whom such information is to be given is informed in writing of its confidential nature and (except in the case of 20.2(c) above) gives an appropriate confidentiality undertaking in respect of such information.

20.3 The Borrower may not assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

21 Conduct of business by the Lender

No provision of this letter will:

(g) interfere with the right of the Lender to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; or

(h) oblige the Lender to disclose any information relating to its affairs (tax or otherwise) or any compensation in respect of Tax.

22 Payment mechanics

22.1 On each date on which the Borrower is required to make a payment under a Finance Document, the Borrower shall ensure that the Managing Agent makes the same available to the Lender for value on the due date.

22.2 If the Lender receives a payment that is insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Lender shall apply that payment towards the obligations of the Borrower under the Finance Documents in such order as the Lender shall determine.

22.3 All payments to be made by the Borrower under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set off or counterclaim.

22.4

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(f) Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

(g) During any extension of the due date for payment of any principal amount under this letter, interest is payable on that principal amount at the rate payable on the original due date.

22.5 If a change in any currency of the United Kingdom occurs, this letter will, to the extent the Lender (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the relevant interbank market and otherwise to reflect the change in currency.

(a) Set off

The Lender may set off any matured obligation due from the Borrower under the Finance Documents against any matured obligation owed by the Lender to the Borrower under the Finance Documents, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set off.

23 Security and recourse

23.1 All obligations of the Borrower to the Lender under the Finance Documents will be secured by the Security Documents.

23.2 Notwithstanding anything in this letter or in the Security Documents to the contrary the Lender acknowledges and agrees that all amounts payable or expressed to be payable by the Borrower to the Lender under, or in respect of its obligations and liabilities under, this letter and the Security Documents shall be recoverable only from and to the extent of:

(f) the Charged Assets; and

(g) any proceeds of realisation or enforcement of any such Security,

and the Borrower shall not be personally liable for such amounts (and the Lender on behalf of itself and any parties claiming through it (whether by assignment, novation, subrogation, reimbursement or otherwise) waives all rights against the Borrower personally in respect of such amounts).

24 Notices

24.1 Any communication to be made under or in connection with this letter shall be made in writing and, unless otherwise stated, may be made by fax or letter.

24.2 The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each party for any communication or document to be made or delivered under or in connection with this letter is:

(h) in the case of the Borrower: Moor Park Capital Partners LLP

Address:    York House

45 Seymour Street

18

London

W1H 7JT

Fax number:    +44 (0) 207 152 1153

Attention:    Graydon Butler; and

(i) in the case of the Lender:

Address: Santander UK plc
298 Deansgate
Manchester
M3 4HH

Fax number:    0161 953 3517

Attention:    Commercial Property Administration Manager,

or any substitute address, fax number or department or officer as either party may notify to the other by not less than 5 Business Days' notice.

24.3

(b) Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

(i) if by way of fax, when received in legible form; or

(ii) if by way of letter, when it has been left at the relevant address or 5 days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided under clause 24.2, if addressed to that department or officer.

(c) Any communication or document to be made or delivered to the Lender will be effective only when actually received by the Lender and then only if it is expressly marked for the attention of the department or officer identified above (or any substitute department or officer as the Lender shall specify for this purpose).

(d) Where the Borrower's registered office is outside the United Kingdom then without prejudice to any other mode of service allowed under any relevant law, it irrevocably appoints Moor Park Capital Partners LLP as its agent for service of notices and all other communications in relation to the Finance Documents (including process in relation to any proceedings before the English courts in connection with any Finance Document).

(e) If any person appointed as an agent for service is unable for any reason to act as agent the Borrower must immediately (and in any event within five days of such event taking place) appoint another agent on terms acceptable to the Lender. Failing this, the Lender may appoint another agent for this purpose.

25 Calculations and certificates

25.1 In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, in the absence of manifest error, the entries made in the accounts maintained by the Lender are prima facie evidence of the matters to which they relate.

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25.2 Any certification or determination by the Lender under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

25.3 Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days.

26 Partial invalidity

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

27 Remedies and waivers

No failure to exercise, nor any delay in exercising, on the part of the Lender, any right or remedy available to it under the Finance Documents or otherwise shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in the Finance Documents are cumulative and not exclusive of any rights or remedies provided by law.

28 Third parties

28.1 Unless expressly provided to the contrary in this letter, a person who is not a party to this letter has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any term of this letter.

28.2 The consent of any person who is not a party to this letter is not required to rescind or vary this letter or any other agreement entered into in connection with it.

29 Publicity

The Borrower agrees that the Lender may, with the prior written consent of the Borrower (such consent not to be unreasonably withheld or delayed), publicise details of the Facility.

30 Inconsistency with Security Documents

30.1 To the extent that there is any inconsistency between the terms of any Security Documents and the terms of this letter, then until such time as all liabilities and obligations of the Borrower under this letter are repaid and discharged in full, the terms of this letter shall prevail.

31 Governing law

31.1 This letter shall be governed by, and construed in accordance with, English law and all claims and disputes between the parties arising out of or in connection with this letter (whether or not contractual in nature) shall be determined in accordance with English law.

31.2 If in any court either party argues that a court other than the courts of England and Wales has jurisdiction to determine any dispute or difference between the parties arising out of or in connection with this letter that issue shall be determined in accordance with English law and each party irrevocably and unconditionally waives any right it might otherwise have to rely upon the law of the forum or any other law.

32 Submission to jurisdiction

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32.1 For the benefit of the Lender, the Borrower submits to the exclusive jurisdiction of the courts of England and Wales in relation to all claims, disputes, differences or other matters arising out of or in connection with this letter provided that nothing in this clause shall prevent the Lender in its sole and unfettered discretion, from commencing proceedings against the Borrower in any court of competent jurisdiction.

32.2 The Borrower irrevocably waives any right that it may have:

(a) to object on any ground to an action being brought in the courts of England and Wales, to claim that the action brought in the courts of England and Wales has been brought in an inconvenient forum, or to claim that the courts of England and Wales do not have jurisdiction; or

(b) to oppose the enforcement of any judgment of any court of England and Wales.

33 Acceptance

33.1 The offer contained in this letter shall be open for acceptance for 20 Business Days following the date of this letter.

33.2 Please indicate your acceptance of the terms set out in this letter by signing and returning to us the enclosed copy of this letter.

Yours faithfully

/s/ Steve Rees

Relationship Director

For and on behalf of Santander UK plc

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We acknowledge receipt of the facility letter of which this is a copy. We accept the terms set out in that letter.

Signed by:     /s/ Jesse C. Galloway

Authorised Signatory

on behalf of:     ARC MCCARUK001, LLC a Delaware limited liability company

Date:        October 30, 2012

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Schedule 1

Definitions and construction

Affiliate means in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company

Annual Interest Costs means, in relation to any Relevant Period, the amount determined by the Lender to be the aggregate amount of interest, commission and similar amounts payable by the Borrower under clause 8 during that Relevant Period

Annual Rent means, in relation to any Relevant Period, the amount determined by the Lender to be the aggregate Rental Income received by or on behalf of the Borrower in respect of the Property during that Relevant Period

Authorisation means an authorisation, consent, approval, resolution, licence, exemption, filing or registration

Availability Period means the period of 20 Business Days from and including the date of this letter

Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in London

Certificate of Title means a certificate prepared by the Lender's lawyers, in form and substance satisfactory to the Lender, relating to the Borrower's title to the Property

Charged Assets means the undertaking, property and assets of the Borrower which are subject to Security created by the Security Documents in favour of the Lender

CML Lenders' Handbook means the Council of Mortgage Lenders Lenders' Handbook for England and Wales for the time being, a copy of the latest edition of which is available at www.cml.org.uk

Compliance Certificate means a certificate signed by a special member of the Borrower and substantially in the form set out in Schedule 3

Default means an Event of Default or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default

Duty of Care Deed means the deed executed or to be executed by each of the Borrower, the Lender and a Managing Agent

Event of Default means any event or circumstance specified as such in clause 19

Facility means the term loan facility made available under this letter as described in clause 1

Final Repayment Date means 5 (five) years after the Utilisation Date

Finance Document means this letter, each Security Document, each Duty of Care Deed, each Hedging Arrangement and each other document designated as such by the Lender and the Borrower

Financial Indebtedness means any indebtedness for or in respect of:

(a) moneys borrowed;

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(b) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

(c) the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease;

(d) receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

(e) any amount raised under any other transaction (including, without limitation, any forward sale or purchase agreement) having the commercial effect of a borrowing;

(f) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account);

(g) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and

(h) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (g) above

GAAP means generally accepted accounting principles in the country of incorporation of the Borrower

Hedging Arrangement means any interest rate management agreement or arrangement entered into by the Borrower to hedge its floating rate interest payment obligations under this letter

Holding Company means in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary

Insurances means all contracts or policies of insurance in which the Borrower has an interest

Interest Payment Date means:

(a) 31 January 2013, and then quarterly thereafter; and

(b)    the Final Repayment Date

Interest Period means in relation to the Loan each period determined in accordance with clause 8.2 and, in relation to any sum due and payable but unpaid by the Borrower under the Finance Documents, each period determined in accordance with clause 8.4

ITA means the Income Tax Act 2007

Legal Charge means a charge by way of legal mortgage of the Property executed or to be executed by the Borrower in favour of the Lender

Lender means Santander UK plc

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LIBOR means in relation to the Loan:

(a) the applicable Screen Rate; or

(b) (if no Screen Rate is available for the currency or period of that Loan) the rate (rounded upwards to four decimal places) quoted by leading banks to the Lender in the London Interbank Market,

as of 11.00 am on the first day of an Interest Period for the offering of deposits in the currency of that Loan and for a period comparable to such Interest Period for that Loan

LIBOR Break Costs means the amount (if any) by which:

(a) the interest (excluding Margin) which the Lender should have received for the period from the date of receipt of all or any part of the Loan or Unpaid Sum to the last day of the current Interest Period in respect of the Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period

exceeds:

(b) the amount which the Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the London Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period,

Provided that if the LIBOR Break Costs as calculated above should be a negative figure, that figure shall be a LIBOR Break Gain

Loan means the principal amount of the borrowing by the Borrower made or to be made under the Facility or the principal amount outstanding for the time being of that borrowing

Management Agreement means the management agreement entered into between the Borrower and the Managing Agent in a form and substance satisfactory to the Lender

Managing Agent means a managing agent of the Property or other person having authority to collect the Rental Income in respect of the Property, in each case approved by the Lender (such approval not to be unreasonably withheld, delayed or conditioned)

Mandatory Cost means the cost to the Lender of compliance with the requirements of the Bank of England and/or the Financial Services Authority (or, in each case, any other authority which replaces all or any of its functions) or the requirements of the European Central Bank, calculated by the Lender and expressed as a percentage rate per annum

Margin means 2.9 per cent per annum

Market Value means the market value (as defined in the Statements of Asset Valuation Practice and Guidance Notes issued by the Royal Institution of Chartered Surveyors from time to time)

Material Adverse Effect means, in the opinion of the Lender, a material adverse effect on:

(a) the business, assets or financial condition of the Borrower; and/or

(b) the ability of the Borrower to perform any of its obligations under the Finance Documents to which it is a party; and/or

25

(c) the value or enforceability of the Security created by the Security Documents

Month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

(a) (subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

(b) if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

(c) if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end

provided that the rules in (a), (b) and (c) above will only apply to the last Month of any period

Net Rental Income means Rental Income less amounts properly deducted by the Managing Agent in accordance with the Management Agreement, in respect of repairs, insurance, management and other professional fees in relation to the Property

Occupational Lease means any agreement for lease or for licence or any occupational lease or licence to which the Property may be subject from time to time

Permitted Security means:

(a) any Security granted in favour of the Lender;

(b) any lien arising by operation of law and in the ordinary course of trading and not as a result of any default or omission by the Borrower;

(c) any netting or set off arrangement entered into by the Borrower in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

(d) any Security arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to the Borrower in the ordinary course of trading and on the supplier's standard or usual terms and not arising as a result of any default or omission by the Borrower; or

(e) any Security permitted by the Lender in writing

Property means 58-62 Scotch Street, Carlisle, Cumbria, CA3 8PN and registered at the Land Registry with title number CU46679

Qualifying Lender means:

(a)    the Lender provided that it is (on the date a payment falls due) within the charge to United Kingdom corporation tax as respects that payment and is the Lender in respect of an advance made by a person that was a bank (as defined in section 879 of the ITA) at the time that advance was made; or (b)    the Lender which is:

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(i)    a company resident in the United Kingdom for United Kingdom tax purposes;

(ii)    a partnership each member of which is:

(A)    a company so resident in the United Kingdom; or

(B) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which is required to bring into account in computing its chargeable profits (within the meaning of section 11(2) of the Taxes Act) the whole of any share of interest payable in respect of that advance that falls to it by reason of sections 114 and 115 of the Taxes Act;

(iii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (for the purposes of section 11(2) of the Taxes Act) of that company; or

(c) a building society authorised under the Building Societies Act 1986 and which is entitled to receive interest payable to it under this letter without deduction of tax pursuant to section 880 of the ITA

Relevant Jurisdiction means, in relation to the Borrower:

(a) its jurisdiction of incorporation or (in the case of an individual) the jurisdiction in which it is resident

(b) any jurisdiction where any asset subject to or intended to be subject to the Security to be created by it pursuant to the Security Documents is situated

(c) any jurisdiction where it conducts its business and

(d) the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it

Relevant Period means:

(a) in respect of each Interest Payment Date occurring in the 12 month period from the Utilisation Date, the period from the Utilisation Date to that Interest Payment Date; and

(b) thereafter, each 12 month period ending on an Interest Payment Date

Rent Account means the account referred to in clause 9.1 and any account which replaces it from time to time with the prior written consent of the Lender

Rental Income means the aggregate of all amounts payable to, or for the benefit or account of, the Borrower in connection with the letting or permitted third party occupation or use of the whole or any part of the Property, including each of the following amounts:

(a) rent, licence fees and equivalent amounts paid or payable;

(b) any sum received or receivable from any deposit held as security for performance of a tenant's obligations;

27

(c) any other moneys paid or payable in respect of occupation and/or usage of the Property and any fixture and fitting on the Property including any fixture or fitting on the Property for display or advertisement, on licence or otherwise;

(d) any sum paid or payable under any policy of insurance in respect of loss of rent or interest on rent;

(e) any sum paid or payable, or the value of any consideration given, for the grant, surrender, amendment, supplement or extension of any Occupational Lease;

(f) any sum paid or payable in respect of a breach of covenant or dilapidations under any Occupational Lease;

(g) any sum paid or payable by or distribution received or receivable from any guarantor of any occupational tenant under any Occupational Lease;

(h) any Tenant Contributions; and

(i) any interest paid or payable on, and any damages, compensation or settlement paid or payable in respect of, any sum referred to above less any related fees and expenses incurred (which have not been reimbursed by another person) by the Borrower

Repeating Representations means each of the representations in clause 15.1 to clause 15.10 (inclusive)

Reports means the Certificate of Title and the initial Valuation referred to in Schedule 2 and any other third party reports and assessments referred to in paragraph 4 of Schedule 2

Reservations means:

(a) the principle that equitable remedies are remedies which may be granted or refused at the discretion of the court;

(b) the limitation of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria, administration and other laws generally affecting the rights of creditors;

(c) the time barring of claims under the Limitation Acts;

(d) the possibility that an undertaking to assume liability for or to indemnify a person against non payment of stamp duty may be void;

(e) defences of set off or counter-claim; and

(f) similar principles and similar matters arising under the laws of any foreign jurisdictions in which the relevant obligations may have to be performed

Screen Rate means, in relation to LIBOR, the British Bankers' Association Interest Settlement Rate for Sterling and the relevant period displayed on the relevant page of the Reuters screen save that if the agreed page is replaced or the service ceases to be available, the Lender may specify another page or service displaying the appropriate rate after consultation with the Borrower

Security means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect

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Security Document means the Legal Charge, the Subordination Deed and any other document which confers Security on the Lender or constitutes a guarantee, indemnity or other assurance in favour of the Lender in respect of liabilities of the Borrower in connection with the Finance Documents and any other document designated as such by the Lender and the Borrower

Shareholder means ARC Global Holdco, LLC (registered in the State of Delaware)

Sterling and £ means the lawful currency of the United Kingdom

Subordinated Creditor means ARC Global Holdco, LLC (a limited liability company incorporated in the state of Delaware)

Subordinated Loans means at any time the aggregate of any loans outstanding to the Subordinated Creditor from the Borrower

Subordination Deed means a subordination deed executed or to be executed by the Borrower and the Subordinated Creditor in favour of the Lenderin connection with the Facility Letter

Subsidiary means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006

Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same)

Tax Deduction means a deduction or withholding for or on account of Tax from a payment under a Finance Document

Taxes Act means the Income and Corporation Taxes Act 1988

Tenant Contributions means any amount paid or payable to the Borrower by any tenant under an Occupational Lease or any other occupier of the Property, by way of:

(a) contribution to:

(i) ground rent;

(ii) insurance premia;

(iii) the cost of an insurance valuation;

(iv) a service or other charge in respect of the Borrower's costs in connection with any management, repair, maintenance or similar obligation or in providing services to a tenant of, or with respect to, the Property; or

(v) a reserve or sinking fund; or

(b) VAT.

Utilisation Date means the date on which the Loan is, or is to be, made

Valuation means a valuation report by the Valuer addressed to the Lender, containing in particular a valuation of the Property on the basis of the market value in accordance with the Statements of Asset Valuation Practice and Guidance Notes issued by the Royal Institution of Chartered Surveyors from time to time

29

Valuer means Jones Lang LaSalle or such other surveyor or valuer as may be appointed or approved by the Lender from time to time

VAT means value added tax as provided for in the Value Added Tax Act 1994 and any other tax of a similar nature which may be imposed from time to time

Construction

1    Any reference in this letter to:

1.1 assets includes present and future property, revenues and rights of every description;

1.2 this letter,a Finance Document or any other agreement or instrument is a reference to this letter, that Finance Document or that other agreement or instrument as the same may have been, or may from time to time be, amended, novated, replaced, restated, supplemented or varied provided that, where the consent of the Lender is required pursuant to any Finance Document or otherwise to such amendment, novation, replacement, restatement, supplement or variation, such consent has been obtained;

1.3 indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

1.4 a guarantee includes any guarantee, indemnity, counter indemnity or other assurance in respect of the indebtedness of any person;

1.5 a person includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing;

1.6 a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of the law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

1.7 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination;

1.8 a provision of law is a reference to that provision as amended or re-enacted;

1.9 any provision in the CML Lenders' Handbook shall be treated (where and when applicable) as being a reference to the corresponding provision (or provisions) that most nearly corresponds to it in any amendment to or replacement of the CML Lenders' Handbook as at the date of this letter;

1.10 a clause number is to a clause in this letter and a reference to a paragraph number is to a paragraph of the relevant schedule in which that reference appears, unless specified otherwise; and

1.11 the masculine shall include the feminine.

2 Clause and schedule headings are for ease of reference only.

3 A Default is continuing if it has not been remedied or waived.

30

4 A reference in this letter to any person includes that person's successors and (in the case of the Lender only) its permitted assignees and transferees.

Schedule 2

Conditions precedent

1 The Borrower

1.1 A copy of the constitutional documents of the Borrower.

1.2 A copy of a resolution of the board of directors of the Borrower approving the Finance Documents to which it is a party and authorising their execution.

1.3 A specimen of the signature by each person authorised by the resolutions referred to in paragraph 1.2 above.

2 Financial Information

2.1 A copy of the most recent financial statements of any material tenant of the Property.

2.2 Evidence and details of funding (if any) in respect of the balance of the purchase price of the Property provided other than under this letter.

2.3 Written confirmation addressed to the Lender from the Borrower's solicitors that they are holding £840,000 (being the balance of the purchase price for the Property) and that immediately on utilisation of the Facility they will apply such sum and the Loan immediately in completion of the purchase of the Property.

3 Insurance

Evidence of the extent and level of insurance cover in force (including the extent and level of insurance cover in respect of acts of terrorism), that the insurance accords with the terms of this letter and the Legal Charge and that the Lender is either joint insured or noted on each relevant policy as mortgagee and loss payee.

4 Valuation

The initial Valuation in a form and substance satisfactory to the Lender confirming that:

(a) the maximum amount of the Facility (as shown in clause 1) does not exceed 47.5% of the Market Value; and

(b) the Annual Rent for the 12 months immediately following the Utilisation Date is not less than 200% of Annual Interest Costs for such period.

5 Property

5.1 A Certificate of Title in respect of the Property.

5.2 An undertaking from the Borrower's solicitors in relation to stamping, the title deeds to the Property and registration of the Security Documents and the form RX1 at the Land Registry.

31

5.3 A completed Land Registry application form RX1.

5.4 An effective discharge of all Security affecting the Property and all other Security affecting any other assets the subject of the Security Documents.

5.5 If applicable, a copy of the completion statement prepared by the vendor's solicitors.

5.6 Each Occupational Lease.

5.7 In respect of each subsisting Occupational Lease:

(a) a rental authority letter from the vendor of the Property addressed to the tenant(s); and

(b) copy rent receipts or other evidence of receipt of rent by the vendor of the Property.

5.8 A copy of all consents (if any) required for the transfer of the Property to the Borrower and the charging of the Property by the Borrower.

5.9 Confirmation from the Valuer that it has received the Certificate of Title and specifying any resulting alteration to the initial Valuation.

5.10 A copy of the Inland Revenue land transaction return in connection with the Property signed by the Borrower.

6 Rent Account

Evidence that the Rent Account has been opened.

7 Finance Documents

7.1 A duly completed notice in accordance with clause 5.

7.2 This letter accepted by the Borrower.

7.3 The Legal Charge executed by the Borrower.

7.4 Notices (and appropriate address labels) to each occupational tenant or occupier to pay all rent and any other sums payable in respect of the property in to the Rent Account substantially in the form of schedule 4 to the Legal Charge.

7.5 Hedging arrangements in accordance with clause 8.6.

7.6 The Subordination Deed executed by the parties thereto.

8 Managing Agent

8.1 The Management Agreement executed by Moor Park Capital Partners LLP and the Borrower.

8.2 Evidence of the Managing Agent's professional indemnity insurance cover.

8.3 The Duty of Care Deed executed by the Managing Agent, the Lender and the Borrower.

9 Legal opinions

32

The following legal opinions, each addressed to the Lender a legal opinion of Proskauer Rose LLP, legal advisers to the Lender as to Delaware law in substantially in the form provided to the Lender prior to execution and delivery of this letter.

10 Miscellaneous

10.1 Evidence that Moor Park Capital Partners LLP has accepted its appointment as process agent for the Borrower.

10.2 Evidence that all relevant fees, costs and expenses pursuant to clauses 10 and 14.1(a) have been paid or will be paid on the Utilisation Date.

10.3 A copy of any Authorisation or other document, opinion or assurance which the Lender considers to be necessary or desirable in connection with the entry into and performance of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document.

10.4 A copy of the Borrower's VAT registration certificate and evidence that it has elected to waive the exemption in relation to the Property and that that election has been acknowledged by HM Revenue & Customs.

10.5 A winding-up check at the High Court in London and a search at the relevant Companies Registry in respect of the vendor of the Property dated no earlier than the Utilisation Date revealing no adverse entries.

10.6 Such information and documentation as the Lender may require in order to comply with its "know your customer" procedures.

33

Schedule 3

Form of Compliance Certificate

To:    Santander UK plc

From:    ARC MCCARUK001 LLC

Dated:    

Dear Sirs

ARC MCCARUK001 LLC – Facility Letter dated ¨ 2012 (Facility Letter)

1 We/I refer to the Facility Letter. This is a Compliance Certificate. Terms defined in the Facility Letter have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

2 We/I confirm that:

(a) in respect of the period commencing on ¨ and ending on ¨ (being the most recent Interest Payment Date) Annual Rent is not less than 200 per cent of Annual Interest Costs; and

(b) as at ¨ (being the most recent Interest Payment Date), the Loan is not greater than 60 per cent of the Market Value of the Property.

3 We confirm that no Default is continuing.

Signed:    ………………………………………..

Authorised Signatory of                    

ARC MCCARUK001, LLC                                

34

EX-10.9

Exhibit 10.9

FIRST AMENDMENT TO

AMENDED AND RESTATED ADVISORY AGREEMENT

This FIRST AMENDMENT TO AMENDED AND RESTATED ADVISORY AGREEMENT is entered into as of November 7, 2012, among American Realty Capital Global Trust, Inc. (the “Company”), American Realty Capital Global Operating Partnership, L.P. (the “OP”) and American Realty Capital Global Advisors, LLC (the “Advisor”).

RECITALS

WHEREAS, the Company, the OP and the Advisor entered into that certain Amended and Restated Advisory Agreement (the “Advisory Agreement”), dated as of August 14, 2012; and

WHEREAS, pursuant to Section 24 of the Advisory Agreement, the Company, the OP and the Advisor desire to make certain amendments to the Advisory Agreement.

NOW, THEREFORE, in consideration of the premises made hereunder, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1. Amendment to Section 10(d) of the Advisory Agreement. Effective July 1, 2012, Section 10(d) of the Advisory Agreement is hereby replaced in its entirety with the following:

“(d)          Asset Management Fee. The Company (and with respect to a Foreign Investment, the applicable Local Entity)

(i)          Until the Company acquires at least $1.2 billion in total portfolio assets, the Company shall pay the Advisor or its assignees an Asset Management Fee equal to 0.75% of the cost of the Company’s assets (including the purchase price, acquisition expenses, capital expenditures and other customarily capitalized costs, but excluding acquisition fees); provided, however, that the Asset Management Fee shall be reduced by any amounts payable to American Realty Capital Global Properties, LLC, as an oversight fee, such that the aggregate of the Asset Management Fee and such oversight fee does not exceed 0.75% per annum of the cost of the Company’s assets. Such Asset Management Fee will be payable on the first Business Day of each month for the respective current month in the amount of 0.0625% of average invested assets as of such date, adjusted for appropriate closing dates for individual investments. The Asset Management Fee shall be payable, at the discretion of the Board, in cash, common stock or restricted stock grants, or any combination thereof. The amount of the Asset Management Fee will be reduced to the extent that funds from operations (“FFO”) as adjusted, during the six months ending on the last day of the calendar quarter immediately preceding the date such Asset Management Fee is payable, is less than the dividends declared with respect to the six month period. For purposes of

this determination, FFO, as adjusted, is FFO (as defined by NAREIT), adjusted to add back (i) acquisition fees and related expenses; (ii) non-cash restricted stock grant amortization, if any; and (iii) impairments of real estate related investments, if any (including properties, loans receivable and equity and debt investments).

(ii)         After the first quarter following the Company’s acquisition of at least $1.2 billion in total portfolio assets, the Company shall pay an Asset Management Fee to the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets based on the lower of 0.75% of the costs of assets and 0.75% of the quarterly NAV. Such Asset Management Fee will be payable monthly, based on assets held by the Company during the measurement date, adjusted for appropriate closing dates for individual property acquisitions. The amount of the Asset Management Fee will be reduced to the extent FFO as adjusted, during the six months ending on the last day of the calendar quarter immediately preceding the date such Asset Management Fee is payable, is less than the dividends declared with respect to the six month period. For purposes of this determination, FFO, as adjusted, is FFO (as defined by NAREIT), adjusted to add back (i) acquisition fees and related expenses; (ii) non-cash restricted stock grant amortization, if any; and (iii) impairments of real estate related investments, if any (including properties, loans receivable and equity and debt investments).”

[Signature page follows.]

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this agreement as of the date first set forth above.

AMERICAN REALTY CAPITAL GLOBAL TRUST, INC.

By:    /s/ Edward M. Weil, Jr.

Name:    Edward M. Weil, Jr.

Title:    President

AMERICAN REALTY CAPITAL GLOBAL OPERATING PARTNERSHIP, L.P.

By: American Realty Capital Global Trust, Inc.,

its General Partner

By:    /s/ Edward M. Weil, Jr.

Name:    Edward M. Weil, Jr.

Title:    President

AMERICAN REALTY CAPITAL GLOBAL ADVISORS, LLC

By:    /s/ Edward M. Weil, Jr.

Name:    Edward M. Weil, Jr.

Title:    President

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Nicholas S. Schorsch, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Realty Capital Global Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 9th day of November, 2012	/s/ Nicholas S. Schorsch
	Nicholas S. Schorsch
	Chief Executive Officer and Chairman of the Board of Directors
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Brian S. Block, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Realty Capital Global Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 9th day of November, 2012	/s/ Brian S. Block
	Brian S. Block
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32

Exhibit 32

SECTION 1350 CERTIFICATIONS

This Certificate is being delivered pursuant to the requirements of Section 1350 of Chapter 63 (Mail Fraud) of Title 18 (Crimes and Criminal Procedures) of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed for purposes of Section 18 of the Securities Act of 1934, as amended.

The undersigned, who are the Chief Executive Officer and Chief Financial Officer of American Realty Capital Global Trust, Inc. (the “Company”), each hereby certify as follows:

The quarterly report on Form 10-Q of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 9th day of November, 2012

/s/ Nicholas S. Schorsch

Nicholas S. Schorsch

Chief Executive Officer and Chairman of the

Board of Directors

(Principal Executive Officer)

/s/ Brian S. Block

Brian S. Block

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

XML

Common Stock

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Common Stock

Common Stock

As of September 30, 2012 and December 31, 2011, the Company had 31,222 and 22,222 shares of common stock outstanding, including unvested restricted shares, respectively, and had received total proceeds of $0.2 million as of September 30, 2012 and December 31, 2011.

On October 5, 2012, the Company's board of directors authorized and the Company declared, a distribution, which will be calculated based on stockholders of record each day during the applicable period at a rate of $0.00194520550 per day based on $10.00 price per common share. The distributions will begin to accrue 30 days following the Company’s initial property acquisition. The distributions will be payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distributions payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured.

The Company has a Share Repurchase Program (“SRP”) that enables stockholders to sell their shares to the Company. Under the SRP, stockholders may request that the Company repurchase all or any portion, subject to certain minimum amounts described below, of their shares on any business day, if such repurchase does not impair the Company's capital or operations.

After the first quarter following the Company's acquisition of at least $1.2 billion in total investment portfolio assets, the repurchase price for shares under the SRP will be based on NAV. Only those stockholders who purchased their shares from us or received their shares from us (directly or indirectly) through one or more non-cash transactions may be able to participate in the SRP. The repurchase of shares will occur on the last business day of each quarter (and in all events on a date other than a dividend payment date). Purchases under the SRP will be limited in any calendar quarter to 1.25% of the Company's NAV as of the last day of the previous calendar quarter, or approximately 5.0% of the Company's NAV in any 12 month period. If the Company reaches the 1.25% limit on repurchases during any quarter, the Company will not accept any additional repurchase requests for the remainder of such quarter. The SRP will automatically resume on the first day of the next calendar quarter, unless the board of directors determines to suspend the SRP.

Prior to the commencement of the calculation of NAV, the number of shares repurchased may not exceed 5.0% of the weighted average number of shares of common stock outstanding at the end of the previous calendar year and the price per share for repurchases of shares of common stock will be as follows:

• the lower of $9.25 or 92.5% of the price paid to acquire the shares, for stockholders who have continuously held their shares for at least one year;

• the lower of $9.50 and 95.0% of the price paid to acquire the shares for stockholders who have continuously held their shares for at least two years;

• the lower of $9.75 and 97.5% of the price paid to acquire the shares for stockholders who have continuously held their shares for at least three years; and

• the lower of $10.00 and 100.0% of the price paid to acquire the shares for stockholders who have continuously held their shares for at least four years (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock).

Subject to limited exceptions, stockholders who request the repurchase of shares of the Company's common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2.0%.

When a stockholder requests a repurchase and the repurchase is approved, the Company reclassifies such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP have the status of authorized but unissued shares. As of September 30, 2012, no shares of common stock have been repurchased or were eligible to be repurchased.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The accompanying consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to this Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2012 and for the period from July 13, 2011 (date of inception) to September 30, 2012 are not necessarily indicative of the results for the entire year or any subsequent interim period.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2011, and for the period from July 13, 2011 (date of inception) to December 31, 2011, which are included in the Company's Registration Statement on Form S-11. There have been no significant changes to Company's significant accounting policies during the nine months ended September 30, 2012 other than the updates described below.

Deferred Costs

Deferred costs consist of deferred offering costs. Deferred offering costs represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with registering to sell shares of the Company's common stock. On April 20, 2012, the day the Company commenced its IPO, deferred offering costs were reclassified to stockholders’ equity.

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued guidance that expands the existing disclosure requirements for fair value measurements, primarily for Level 3 measurements, which are measurements based on unobservable inputs such as the Company's own data. This guidance is largely consistent with current fair value measurement principles with few exceptions that do not result in a change in general practice. The guidance was applied prospectively and was effective for interim and annual reporting periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations as the guidance relates only to disclosure requirements.

In June 2011, the FASB issued guidance requiring entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The new guidance does not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. In December 2011, the FASB deferred certain provisions of this guidance related to the presentation of certain reclassification adjustments out of accumulated other comprehensive income, by component in both the statement and the statement where the reclassification is presented. This guidance was applied prospectively and was effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations but changed the location of the presentation of other comprehensive income to more closely associate the disclosure with net income.

In September 2011, the FASB issued guidance that allows entities to perform a qualitative analysis as the first step in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative analysis for impairment is not required. The guidance was effective for interim and annual impairment tests for fiscal periods beginning after December 15, 2011.  The adoption of this guidance did not have a material impact on the Company's financial position or results of operations.

In December 2011, the FASB issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, is not expected to have a material impact on the Company's financial position or results of operations.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the Company's consolidated financial position or results of operations.

XML

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Prepaid expenses and other assets	$ 67	$ 0
Deferred offering costs	0	559
Total assets	67	559
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable and accrued expenses	2,085	375
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 31,222 and 22,222 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	0	0
Additional paid-in capital	1,845	(200)
Accumulated deficit during the development phase	(173)	(16)
Total stockholders' equity (deficit)	(2,018)	184
Total liabilities and stockholders' equity (deficit)	$ 67	$ 559

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended	6 Months Ended	9 Months Ended	15 Months Ended	16 Months Ended
	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2012	Sep. 30, 2012	Oct. 31, 2012
Cash flows from operating activities:
Net loss	$ 0	$ (16,000)	$ (157,000)	$ (173,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	0		7,000	7,000
Changes in assets and liabilities:
Prepaid expenses and other assets	0		(67,000)	(67,000)
Accounts payable and accrued expenses	0		(8,000)	8,000
Net cash used in operating activities	0		(225,000)	(225,000)
Cash flows from financing activities:
Proceeds from issuance of common stock	0	200,000	0	200,000	2,200,000
Payments of offering costs	0		(416,000)	(696,000)
Advances from affiliate	0		641,000	721,000
Net cash provided by financing activities	0		225,000	225,000
Net change in cash	0		0	0
Cash, beginning of period	0	0	0	0	0
Cash, end of period	0	0	0	0
Non-cash Financing Activities [Abstract]
Deferred offering costs paid directly by affiliates	$ 0		$ 0	$ 90

XML

Organization and Proposed Business Operations

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Proposed Business Operations

American Realty Capital Global Trust, Inc. (the “Company”), incorporated on July 13, 2011, is a Maryland corporation that intends to qualify as a real estate investment trust for U.S. federal income tax purposes for the taxable year ending December 31, 2012. On April 20, 2012, the Company commenced its initial public offering ("IPO") on a “reasonable best efforts” basis of up to 150.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to a registration statement on Form S-11 (File No. 333-177563) (the "Registration Statement) filed with the Securities and Exchange Commission ("SEC") under the Securities Act of 1933, as amended. The Registration Statement also covers up to 25.0 million shares of common stock pursuant to a distribution reinvestment plan (the “DRIP”) under which the Company's common stockholders may elect to have their distributions reinvested in additional shares of the Company's common stock.

Until the first quarter following the Company's acquisition of at least $1.2 billion in total investment portfolio assets, the per share purchase price in the IPO will be up to $10.00 per share (including the maximum allowed to be charged for commissions and fees) and shares issued under the DRIP will initially be equal to $9.50 per share, which is 95% of the initial offering price in the IPO. Thereafter, the per share purchase price will vary quarterly and will be equal to the net asset value ("NAV") divided by the number of shares outstanding as of the end of business on the first day of each fiscal quarter after giving effect to any share purchases or repurchases effected in the prior quarter plus applicable commissions and fees, and the per share purchase price in the DRIP will be equal to the NAV per share.

The Company was formed to primarily acquire a diversified portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. The Company’s primary geographic target will be the United States, although up to 40% of its portfolio may consist of properties purchased in Europe and up to an additional 10% may consist of properties purchased elsewhere internationally. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire first mortgage loans secured by real estate. As of September 30, 2012, the Company had not acquired any real estate investments or commenced real estate operations. On October 24, 2012, the Company had raised proceeds sufficient to break escrow in connection with the IPO. The Company purchased its first property and commenced real estate operations on October 30, 2012.

Substantially all of the Company’s business will be conducted through American Realty Capital Global Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP ("OP units"). American Realty Capital Global Special Limited Partner, LLC (the “Special Limited Partner”), an entity wholly owned by AR Capital Global Holdings, LLC (the “Sponsor”) will contribute $200 to the OP in exchange for 22 units of limited partner interest in the aggregate OP ownership, which will represent a nominal percentage of the aggregate OP ownership. After one year, the limited partner interests have the right to convert OP units for the cash value of a corresponding number of shares of common stock or, at the option of the OP, a corresponding number of shares of common stock, as allowed by the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP’s assets.

The Company has no paid employees. American Realty Capital Global Advisors, LLC (the “Advisor”) is the Company’s affiliated advisor, which has been retained to manage the Company’s affairs on a day-to-day basis. The Advisor entered into a service provider agreement with a third party, Moor Park Global Capital Partners LLP (the "Service Provider"), pursuant to which the Service Provider has agreed to provide, subject to the Advisor's oversight, certain real estate related services, including sourcing and structuring of investment opportunities, performance of due diligence, and arranging debt financing and equity investment syndicates with respect to the Company's properties in Europe. The properties will be managed and leased initially by American Realty Capital Global Properties, LLC (the “Property Manager”). Realty Capital Securities, LLC (the “Dealer Manager”) will serve as the dealer manager of the IPO. The Advisor, Property Manager and Dealer Manager are affiliates of the Sponsor and Special Limited Partner. These related parties will receive compensation and fees for services related to the IPO and for the investment and management of the Company’s assets. These entities will receive fees during the offering, acquisition, operational and liquidation stages. Pursuant to the service provider agreement between the Advisor and the Service Provider, the Advisor has agreed to assign 50.0% of the fees payable by the Company under the advisory agreement to the Service Provider, solely with respect to our foreign investment strategy in Europe. The assigned fees will be deducted from the fees payable to the Advisor, pursuant to the service provider agreement.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	300,000,000	300,000,000
Common stock, shares issued	31,222	22,222
Common stock, shares outstanding	31,222	22,222

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Common Stock (Schedule of Stock by Class) (Details) (USD $)	0 Months Ended		3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended	15 Months Ended	16 Months Ended					0 Months Ended	9 Months Ended
	Oct. 24, 2012	Oct. 05, 2012	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2012	Oct. 31, 2012	Oct. 05, 2012 Common Stock [Member]	Sep. 30, 2012 Common Stock [Member]	Apr. 20, 2012 Common Stock [Member]	Dec. 31, 2011 Common Stock [Member]	Oct. 24, 2012 Minimum [Member]	Sep. 30, 2012 Minimum [Member]	Sep. 30, 2012 One Year [Member] Minimum [Member]	Sep. 30, 2012 One Year [Member] Maximum [Member]	Sep. 30, 2012 Two Years [Member] Minimum [Member]	Sep. 30, 2012 Two Years [Member] Maximum [Member]	Sep. 30, 2012 Three Years [Member] Minimum [Member]	Sep. 30, 2012 Three Years [Member] Maximum [Member]	Sep. 30, 2012 Four Years [Member] Minimum [Member]	Sep. 30, 2012 Four Years [Member] Maximum [Member]
Class of Stock [Line Items]
Common Stock, Shares, Outstanding				22,222	31,222		31,222			31,222		22,222
Proceeds from issuance of common stock	$ 1,000,000		$ 0	$ 200,000	$ 0	$ 200,000	$ 200,000	$ 2,200,000					$ 2,000,000
Common Stock, Dividends, Per Share Per Day, Declared		$ 0.00194520548
Share Price	$ 9.00								$ 10.00	$ 10.00	$ 10.00
Payments to Acquire Real Estate														$ 1,200,000,000
Stock Repurchase Program, Quarterly Authorized Amount as a Percentage of Net Asset Value					1.25%		1.25%
Stock Repurchase Program, Annual Authorized Amount as a Percentage of Net Asset Value					5.00%		5.00%
Repurchase Price, Share Repurchase Program															$ 9.25		$ 9.50		$ 9.75		$ 10.00
Repurchase Price, Share Repurchase Program, Percentage of Value of Capital Paid																92.50%		95.00%		97.50%		100.00%
Common Stock, Short-term Trading Fee, Percentage of Aggregate Net Asset Value of Shares Repurchased					2.00%		2.00%

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Oct. 31, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Entity Registrant Name	American Realty Capital Global Trust, Inc.
Entity Central Index Key	0001526113
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		254,000

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Related Party Transactions and Arrangements (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended					9 Months Ended												9 Months Ended	12 Months Ended														9 Months Ended						9 Months Ended								9 Months Ended
	Jun. 30, 2012	Dec. 31, 2011 American Realty Capital Global Special Limited Partner, LLC [Member]	Sep. 30, 2012 Special Limited Partner [Member]	Sep. 30, 2012 Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Maximum [Member]	Sep. 30, 2012 Net Asset Value of Institutional Shares [Member] Dealer Manager [Member] Realty Capital Securities, LLC [Member]	Sep. 30, 2012 Gross Proceeds, Retail Shares [Member] Maximum [Member] Dealer Manager [Member] Realty Capital Securities, LLC [Member]	Sep. 30, 2012 Contract Purchase Price [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Contract Purchase Price [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Advance on Loan or Other Investment [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Contract Purchase Price, All Assets Acquired [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Amount Available or Outstanding Under Financing Arrangement [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Gross Revenue, Managed Properties [Member] Maximum [Member] Property Manager [Member] American Realty Capital Global Properties, LLC [Member]	Sep. 30, 2012 Pre-tax Non-compounded Return on Capital Contribution [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Pre-tax Non-compounded Return on Capital Contribution [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capital [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Monthly Average Daily Net Asset Value [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Jun. 30, 2012 Fees and Expense Reimbursement,Stock Offering [Member] Advisor and Dealer Manager [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Fees and Expense Reimbursement,Stock Offering [Member] Advisor and Dealer Manager [Member] American Realty Capital Global Advisors, LLC and Realty Capital Securities, LLC [Member]	Dec. 31, 2011 Fees and Expense Reimbursement,Stock Offering [Member] Advisor and Dealer Manager [Member] American Realty Capital Global Advisors, LLC and Realty Capital Securities, LLC [Member]	Sep. 30, 2012 Annual Targeted Investor Return [Member] Pre-tax Non-compounded Return on Capital Contribution [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Brokerage Commission Fees [Member] Contract Sales Price [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Real Estate Commissions [Member] Contract Sales Price [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Third party professional fees and offering costs [Member]	Dec. 31, 2011 Third party professional fees and offering costs [Member]	Sep. 30, 2012 Portion recoverable by thrid party service provider [Member] Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capital [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Portion recoverable by thrid party service provider [Member] Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Average Invested Assets [Member] Pre-tax Non-compounded Return on Capital Contribution [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Option One [Member] Gross Proceeds, Retail Shares [Member] Maximum [Member] Participating Broker-Dealer [Member]	Sep. 30, 2012 Option One [Member] Gross Proceeds, Retail Shares [Member] Maximum [Member] Dealer Manager [Member] Realty Capital Securities, LLC [Member]	Sep. 30, 2012 Option Two [Member] Gross Proceeds, Retail Shares [Member] Dealer Manager [Member] Realty Capital Securities, LLC [Member]	Sep. 30, 2012 Lower of [Member] Contract Purchase Price, All Assets Acquired [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Lower of [Member] Monthly Average Daily Net Asset Value [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Greater Of [Member] Average Invested Assets [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Greater Of [Member] Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets [Member] Maximum [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Stand Alone, Single Tenant, Net Leased [Member] Gross Revenue, Managed Properties [Member] Maximum [Member] Property Manager [Member] American Realty Capital Global Properties, LLC [Member]	Sep. 30, 2012 All other properties, other than stand alone, single tenant, net leased [Member] Gross Revenue, Managed Properties [Member] Maximum [Member] Property Manager [Member] American Realty Capital Global Properties, LLC [Member]	Sep. 30, 2012 Europe [Member] Unaffiliated Third Party Property Management Services [Member] Maximum [Member]	Sep. 30, 2012 Europe [Member] Unaffiliated Third Party Property Management Services [Member] Contract Purchase Price [Member]	Sep. 30, 2012 Europe [Member] Unaffiliated Third Party Property Management Services [Member] Amount Available or Outstanding Under Financing Arrangement [Member]	Sep. 30, 2012 Europe [Member] Unaffiliated Third Party Property Management Services [Member] Gross Revenue, Managed Properties [Member] Maximum [Member]	Sep. 30, 2012 Europe [Member] Unaffiliated Third Party Property Management Services [Member] Pre-tax Non-compounded Return on Capital Contribution [Member]	Sep. 30, 2012 Europe [Member] Portion of Fees Attributable to Related Party [Member] Contract Purchase Price [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Europe [Member] Portion of Fees Attributable to Related Party [Member] Amount Available or Outstanding Under Financing Arrangement [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Europe [Member] Portion of Fees Attributable to Related Party [Member] Pre-tax Non-compounded Return on Capital Contribution [Member] Advisor [Member] American Realty Capital Global Advisors, LLC [Member]	Sep. 30, 2012 Gross Revenue, Managed Properties [Member] Europe [Member] Unaffiliated Third Party Property Management Services [Member] Stand Alone, Single Tenant, Net Leased [Member]	Sep. 30, 2012 Gross Revenue, Managed Properties [Member] Europe [Member] Unaffiliated Third Party Property Management Services [Member] All other properties, other than stand alone, single tenant, net leased [Member]	Sep. 30, 2012 Gross Revenue, Managed Properties [Member] Europe [Member] Unaffiliated Third Party Property Management Services [Member] Singe Tenant Net Lease, Not Part of Shopping Center [Member]	Sep. 30, 2012 Gross Revenue, Managed Properties [Member] Europe [Member] Unaffiliated Third Party Property Management Services [Member] All Other Property Types, Other Than Stand Alone, Single Tenant, Net Leased and Not Part of Shopping Center [Member]
Related Party Transaction [Line Items]
Common stock held by related party, in shares		22,222	22,222
Due to Affiliate																									$ 0.8	$ 0.2
Sales commissions as a percentage of benchmark							7.00%																								3.00%	2.50%
Expense wth related party																			0.7
Brokerage fee as a percentage of benchmark																														7.50%
Brokerage fees as a percentage of benchmark, initial grant																														2.50%
Brokerage fees as a percentage of benchmark, periodic payment																														1.00%
Liability for offering and related costs from IPO					1.50%
Aggregate costs borne by related party				(2.0)
Cumulative offering cost cap					15.00%
Cumulative offering costs, net of unpaid amounts	(2.1)
Accounts Payable, Related Parties																				$ 0.7	$ 0
Acquisition fees as a percentage of benchmark								1.00%																																50.00%				50.00%
Financing advance fees as a percentage of benchmark										1.00%
Financing advance fees as a percentage of benchmark, expected third party costs								0.60%
Aggregate acquisition fees and acquisition related expenses as a percentage of benchmark								4.50%
Acquisition and financing coordination fees as a percentage of benchmark									4.50%		1.50%	0.75%																													50.00%				50.00%
Oversight fees as a percentage of benchmark													1.00%																								2.00%	4.00%				50.00%
Property Management Fee, Percent Fee																																							50.00%								0.25%	0.50%	1.75%	3.50%
Operating expenses as a percentage of benchmark																																			2.00%	25.00%
Cumulative capital investment return to investors as a percentage of benchmark																						6.00%							6.00%
Subordinated performance fee as a percentage of benchmark														15.00%	10.00%		15.00%											50.00%															50.00%			50.00%
Real estate commissions as a percentage of benchmark																							2.00%	6.00%
Subordinated participation fees as a percentage of benchmark																15.00%											50.00%
Asset-based platform fees as a percentage of benchmark						0.00192%
Related Party Transaction, Monthly Advisory Fees Earned by Related Party, Percentage of Benchmark																		0.0625%															0.75%	0.75%

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended	15 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2012
Revenues	$ 0	$ 0	$ 0	$ 0
Expenses:
General and administrative	93	0	157	173
Total expenses	93	0	157	173
Net loss	(93)	0	(157)	(173)
Comprehensive loss	$ (93)	$ 0	$ (157)	$ (173)

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Economic Dependency

9 Months Ended

Sep. 30, 2012

Economic Dependency [Abstract]

Economic Dependency

Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor and its affiliates to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company’s common stock available for issue, as well as other administrative responsibilities for the Company including accounting services and investor relations.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

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Related Party Transactions and Arrangements

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions and Arrangements

Related Party Transactions

As of September 30, 2012 and December 31, 2011, the Special Limited Partner owned 22,222 shares of the Company's outstanding common stock. The Advisor and its affiliates may incur costs and fees on behalf of the Company. All offering costs incurred by the Company or its affiliated entities on behalf of the Company are reflected in the accompanying balance sheets. As of September 30, 2012 and December 31, 2011, $0.8 million and $0.2 million, respectively, was payable to affiliated entities to fund the payment of third party professional fees and offering costs.

Fees Paid in Connection with the IPO

The Dealer Manager receives fees and compensation in connection with the sale of the Company’s common stock. The Dealer Manager receives selling commissions of up to 7.0% of the per share purchase price of offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Dealer Manager receives 3.0% of the per share purchase price from the sale of our shares, before reallowance to participating broker-dealers, as a dealer-manager fee. The Dealer Manager may re-allow its dealer-manager fee to participating broker-dealers. A participating broker dealer may elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer-manager fees) by such participating broker dealers, with 2.5% thereof paid at the time of the sale and 1.0% paid on each anniversary date of the closing of the sale to the fifth anniversary date of the closing of the sale. If this option is elected, the Dealer Manager’s fee will be reduced to 2.5% (not including selling commissions and dealer manager fees). No such fees have been incurred from the Dealer Manager during the period from July 13, 2011 (date of inception) to September 30, 2012.

The Advisor and its affiliates receive compensation and reimbursement for services relating to the IPO and the investment and management of the Company’s assets. During the period from July 13, 2011 (date of inception) to September 30, 2012, there were $0.7 million of offering cost reimbursements incurred from the Advisor and Dealer Manager. The Company is responsible for offering and related costs from the ongoing offering, excluding commissions and dealer manager fees, up to a maximum of 1.5% of gross proceeds received from its ongoing offering of common stock, measured at the end of the offering. Offering costs in excess of the 1.5% cap as of the end of the offering are the Advisor's responsibility. As of September 30, 2012, offering and related costs exceeded 1.5% of gross proceeds received from the IPO by $2.0 million. After the escrow break, the Advisor has elected to cap cumulative offering costs incurred by the Company, net of unpaid amounts, to 15% of gross common stock proceeds during the offering period. As of September 30, 2012, cumulative offering costs were $2.1 million.

The Company had $0.7 million of accrued expenses payable to the Advisor and the Dealer Manager at September 30, 2012 for services performed related to the IPO and offering and other cost reimbursements. No such amounts were payable as of December 31, 2011.

Fees Paid in Connection With the Operations of the Company

The Advisor receives an acquisition fee of 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. Solely with respect to investment activities in Europe, the Service Provider will be paid 50% of the acquisition fees and the Advisor will receive the remaining 50%, as set forth in the service provider agreement. Such fees will be deducted from fees payable to the Advisor, pursuant to the service provider agreement. The Advisor is also reimbursed for acquisition costs incurred in the process of acquiring properties, which is expected to be 0.6% of the contract purchase price. In no event will the total of all acquisition fees and acquisition expenses payable with respect to a particular investment exceed 4.5% of the contract purchase price or 4.5% of the amount advanced for a loan or other investment. Once the proceeds from the IPO have been fully invested, the aggregate amount of acquisition fees will not exceed 1.5% of the contract purchase price for all of the assets acquired. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

If the Company’s Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations. Solely with respect to our investment activities in Europe, the Service Provider will be paid 50% of the financing coordination fees and the Advisor will receive the remaining 50%, as set forth in the service provider agreement.  Such fees will be deducted from fees payable to the Advisor, pursuant to the service provider agreement. No financing coordination fees were incurred during the period from July 13, 2012 (date of inception) to September 30, 2012.

The Company will pay the Advisor a monthly fee equal to one-twelfth of 0.75% of the cost of investment portfolio assets (cost will include the purchase price, acquisition expenses, capital expenditures and other customarily capitalized costs, but will exclude acquisition fees). Once the calculation of NAV begins, the asset management fee will be based on the lower of 0.75% of the costs of investment portfolio assets and 0.75% of the quarterly NAV. Such fee to the Advisor will be payable, at the discretion of our board of directors, in cash, common stock, restricted stock grants or any combination thereof. All or a portion of the asset management fee may be waived or deferred at the sole discretion of our board of directors (a) to the extent that FFO, as adjusted, during the six months ending on the last day of the calendar quarter immediately preceding the date that such asset management fee is payable, is less than the distributions declared with respect to such six month period or (b) for any other reason. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

If the Property Manager or an affiliate provides property management and leasing services for properties owned by the Company, the Company will pay fees equal to: (i) with respect to stand-alone, single-tenant net leased properties which are not part of a shopping center, 2.0% of gross revenues from the properties managed and (ii) with respect to all other types of properties, 4.0% of gross revenues from the properties managed. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

For services related to overseeing property management and leasing services provided by any person or entity that is not an affiliate of the Property Manager, we will pay the Property Manager an oversight fee equal to 1.0% of gross revenues of the property managed. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

Solely with respect to our investment activities in Europe, the Service Provider or other entity providing property management services with respect to such investments will be paid: (i) with respect to single-tenant net leased properties which are not part of a shopping center, 1.75% of the gross revenues from such properties and (ii) with respect to all other types of properties, 3.5% of the gross revenues from such properties. The Property Manager will receive 0.25% of the gross revenues from European single-tenant net leased properties which are not part of a shopping center and 0.5% of the gross revenues from all other types of properties, reflecting a 50% split of an Oversight Fee with the Service Provider or an affiliated entity providing European property management services. Such fees will be deducted from fees payable to the Advisor, pursuant to the service provider agreement. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

Commencing six months after the commencement of the IPO, the Company will reimburse the Advisor’s costs of providing administrative services, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company's operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Additionally, the Company will reimburse the Advisor for personnel costs in connection with other services during the operational stage, in addition to paying an asset management fee; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or real estate commissions. No reimbursement was incurred from the Advisor for providing services during the period from July 13, 2011 (date of inception) to September 30, 2012.

The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of the Company's total return to stockholders, payable annually in arrears, such that for any year in which the Company's total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return but not to exceed 10.0% of the aggregate total return for such year (which will take into account distributions and realized appreciation). This fee will be payable only upon the sale of assets, distributions or other events which results in our return on stockholders’ capital exceeding 6.0% per annum. Solely with respect to our investment activities in Europe, the Service Provider will be paid 50% of the annual subordinated performance fee payable in respect of such investments, and the Advisor or its affiliates will receive the remaining 50%, as set forth in the service provider agreement. No such amounts have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may waive certain fees including asset management and property management fees. Because the Advisor may waive certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor in cash. In certain instances, to improve the Company’s working capital, the Advisor may elect to absorb a portion of the Company’s general and administrative costs or property operating expenses. These absorbed costs are presented net in the accompanying consolidated statements of operations and comprehensive loss. No expenses have been absorbed by the Advisor during the period from July 13, 2011 (date of inception) to September 30, 2012.

Fees Paid in Connection with the Liquidation or Listing of the Company’s Real Estate Assets

The Company will pay a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such amounts have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

If the Company is not simultaneously listed on an exchange, the Company will pay a subordinated participation in the net sales proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of an annual 6.0% cumulative, pre-tax non-compounded return on the capital contributed by investors. The Company cannot assure that it will provide this 6.0% return but the Advisor will not be entitled to the subordinated participation in net sale proceeds unless the Company’s investors have received a 6.0% cumulative non-compounded return on their capital contributions. No such amounts have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

The Company will pay a subordinated incentive listing distribution of 15.0%, payable in the form of a promissory note, of the amount by which the market value of all issued and outstanding shares of the Company's common stock plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax non-compounded annual return to investors. The Company cannot assure that it will provide this 6.0% return but the Advisor will not be entitled to the subordinated incentive listing fee unless investors have received a 6.0% cumulative, pre-tax non-compounded return on their capital contributions. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012. Neither the Advisor nor any of its affiliates can earn both the subordination participation in the net proceeds and the subordinated listing distribution.

Solely with respect to the Company's properties in Europe, the Service Provider has the right to be paid up to 50.0% of subordinated participation in the net sales proceeds of the sale of real estate assets and 50.0% of subordinated incentive listing distribution relating to such properties. No such fees have been incurred during the period from July 13, 2011 (date of inception) to September 30, 2012.

Upon termination or non-renewal of the advisory agreement, the Advisor will receive distributions from the OP payable in the form of a promissory note. In addition, the Advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

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Share-Based Compensation (Details) (USD $)	3 Months Ended	9 Months Ended	15 Months Ended
	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2012	Oct. 24, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price				$ 9.00
Share-based compensation	$ 0	$ 7,000	$ 7,000
Stock Option Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price		$ 9.00	$ 9.00
Number of shares authorized, in shares		500,000	500,000
Director Stock Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share vesting period		5 years
Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized, in shares		7,500,000	7,500,000
Shares issued		9,000	9,000
Shares granted automatically upon election to board of directors, in shares		3,000	3,000
Periodic vesting percentage		20.00%	20.00%
Maximum authorized amount as a percentage of shares authorized		5.00%
Fair value at grant date		$ 9.00	$ 9.00
Share-based compensation		$ 7,000
Contract Purchase Price [Member] | Maximum [Member] | Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of Restricted Share Grants		6.00%	6.00%
Average Invested Assets [Member] | Maximum [Member] | Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of Restricted Share Grants		2.00%	2.00%
Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets [Member] | Maximum [Member] | Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of Restricted Share Grants		25.00%	25.00%
Disposition Fees [Member] | Maximum [Member] | Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of Restricted Share Grants		3.00%	3.00%
Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return [Member] | Maximum [Member] | Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of Restricted Share Grants		15.00%	15.00%
Pre-tax Non-compounded Return on Capital Contribution [Member] | Maximum [Member] | Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of Restricted Share Grants		6.00%	6.00%

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued guidance that expands the existing disclosure requirements for fair value measurements, primarily for Level 3 measurements, which are measurements based on unobservable inputs such as the Company's own data. This guidance is largely consistent with current fair value measurement principles with few exceptions that do not result in a change in general practice. The guidance was applied prospectively and was effective for interim and annual reporting periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations as the guidance relates only to disclosure requirements.

In June 2011, the FASB issued guidance requiring entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The new guidance does not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. In December 2011, the FASB deferred certain provisions of this guidance related to the presentation of certain reclassification adjustments out of accumulated other comprehensive income, by component in both the statement and the statement where the reclassification is presented. This guidance was applied prospectively and was effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations but changed the location of the presentation of other comprehensive income to more closely associate the disclosure with net income.

In September 2011, the FASB issued guidance that allows entities to perform a qualitative analysis as the first step in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative analysis for impairment is not required. The guidance was effective for interim and annual impairment tests for fiscal periods beginning after December 15, 2011.  The adoption of this guidance did not have a material impact on the Company's financial position or results of operations.

In December 2011, the FASB issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, is not expected to have a material impact on the Company's financial position or results of operations.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the Company's consolidated financial position or results of operations.

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Share-Based Compensation

9 Months Ended

Sep. 30, 2012

Share-based Compensation [Abstract]

Share-Based Compensation

Share-Based Compensation

Stock Option Plan

 The Company has a stock option plan (the “Plan”) which authorizes the grant of nonqualified stock options to the Company’s independent directors, officers, advisors, consultants and other personnel, subject to the absolute discretion of the board of directors and the applicable limitations of the Plan. The exercise price for all stock options granted under the Plan during the IPO will be $9.00, until the later of the end of the escrow period or the Company's first property acquisition, and thereafter through the termination of the IPO, based on NAV, and thereafter the exercise price for stock options granted to the independent directors will be equal to the fair market value of a share on the last business day preceding the annual meeting of stockholders. A total of 0.5 million shares have been authorized and reserved for issuance under the Plan. As of September 30, 2012, no stock options were issued under the Plan.

Restricted Share Plan

The Company has an employee and director incentive restricted share plan (the “RSP”), which provides for the automatic grant of 3,000 restricted shares of common stock to each of the independent directors, without any further action by the Company’s board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder’s meeting. Restricted stock issued to independent directors will vest over a five-year period following the first anniversary of the date of grant in increments of 20% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company’s directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The fair market value of any shares of restricted stock granted under our restricted share plan, together with the total amount of acquisition fees, acquisition expense reimbursements, asset management fees, financing coordination fees, disposition fees and subordinated distributions by the operating partnership payable to the advisor (or its assignees), shall not exceed (a) 6% of all properties' aggregate gross contract purchase price, (b) as determined annually, the greater, in the aggregate, of 2% of average invested assets and 25% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period, (c) disposition fees, if any, of up to 3% of the contract sales price of all properties that we sell and (d) 15% of remaining net sales proceeds after return of capital contributions plus payment to investors of a 6% cumulative, pre-tax, non-compounded return on the capital contributed by investors. Additionally, the total number of shares of common stock granted under the RSP shall not exceed 5.0% of the Company’s authorized common shares pursuant to the IPO and in any event will not exceed 7.5 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive common shares from the Company under terms that provide for vesting over a specified period of time or upon attainment of pre-established performance objectives. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient’s employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in common shares shall be subject to the same restrictions as the underlying restricted shares. As of September 30, 2012, there were 9,000 restricted unvested shares issued to independent directors under the RSP at $9.00 per share. The value of the shares is being expensed over the vesting period of five years. Compensation expense related to restricted stock was approximately $7,000 for the period from July 13, 2011 (date of inception) to September 30, 2012.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. There were no such shares of common stock issued in lieu of cash during the period from July 13, 2011 (date of inception) to September 30, 2012.

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Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:

Development Stage Company

On October 24, 2012, the Company raised proceeds sufficient to break escrow in connection with its IPO on a reasonable best efforts basis. The Company received and accepted aggregate subscriptions in excess of the minimum $2.0 million and issued shares of common stock to each of the Sponsor and Moor Park Global Advisors Limited, a subsidiary of the Service Provider, in the amount of $1.0 million at a purchase price of $9.00 per share. The Company purchased its first property and commenced real estate operations on October 30, 2012, and as of such date is no longer considered to be a development stage company.

Sales of Common Stock

As of October 31, 2012, the Company had 0.3 million shares of common stock outstanding, including unvested restricted shares from total proceeds from the IPO of $2.2 million.

Acquisition and Financing

On October 30, 2012, the Company acquired its first property – a McDonald’s restaurant located in Carlisle, United Kingdom for a purchase price of $2.6 million, excluding closing costs. The property contains 9,094 rentable square feet and is 100% leased. The property’s original lease has a 35-year term with 11.4 years remaining. Rent is adjusted to market every five years under the lease. The annualized straight line rental income for the initial lease term is $0.2 million or $24.74 per rentable square foot. On October 30, 2012, the Company entered into a mortgage note payable, collateralized by the McDonald's property, in the amount of $1.2 million. The mortgage note payable provides for quarterly interest payments with all principal outstanding being due on the maturity date in October 2017. The interest rate is fixed with an interest rate swap at 4.08%. The mortgage note payable may be prepaid at any time, in whole or in part, without premium or penalty. In the event of a default, the lender has the right to terminate its obligations and to accelerate the payment on any unpaid principal amount of the mortgage note payable.

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Organization (Details) (USD $)									9 Months Ended		9 Months Ended
	Oct. 24, 2012	Sep. 30, 2012	Apr. 20, 2012	Dec. 31, 2011	Oct. 05, 2012 Common stock	Sep. 30, 2012 Common stock	Apr. 20, 2012 Common stock	Sep. 30, 2012 American Realty Capital Global Special Limited Partner, LLC [Member]	Sep. 30, 2012 Minimum [Member]	Apr. 20, 2012 Minimum [Member] Common stock	Sep. 30, 2012 Unaffiliated Third Party Property Management Services [Member] Europe [Member] Maximum [Member]
Operations [Line Items]
Common Stock, Shares Authorized		300,000,000	150,000,000	300,000,000
Common stock, par value, in dollars per share		$ 0.01	$ 0.01	$ 0.01
Share Price	$ 9.00				$ 10.00	$ 10.00	$ 10.00
Shares available for issuance under a distribution reinvestment plan, shares							25,000,000
Payments to Acquire Real Estate									$ 1,200,000,000
Share Price, Dividend Reinvestment Plan										$ 9.50
Share Price, Dividend Reinvestment Plan, Percentage of Estimated Value of Common Stock										95.00%
Limited Partners' Contributed Capital								$ 200
Units of limited partner interest in OP held by The Advisor		22
Property Management Fee, Percent Fee											50.00%

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) In Thousands, except Share data	Total USD ($)	Common stock	Additional Paid-in Capital USD ($)	Accumulated Deficit During The Development Stage [Member] USD ($)
Beginning Balance at Jul. 12, 2011
Issuance of common stock (in shares)		22,222
Issuance of common stock	$ 200		$ 200
Net loss	(16)			(16)
Ending Balance at Dec. 31, 2011	184		200	16
Ending Balance (in shares) at Dec. 31, 2011		22,222
Net loss	(157)			(157)
Offering costs	(2,052)		(2,052)
Share-based Compensation (in shares)		9,000
Share-based Compensation	7		7
Ending Balance at Sep. 30, 2012	$ (2,018)		$ 1,845	$ 173
Ending Balance (in shares) at Sep. 30, 2012		31,222

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation

In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company does not own any properties as of September 30, 2012, has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations.

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Subsequent Events (Details) (USD $)	0 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended	15 Months Ended	16 Months Ended		0 Months Ended		0 Months Ended
	Oct. 24, 2012	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2012	Oct. 31, 2012	Oct. 30, 2012	Oct. 24, 2012 Minimum [Member]	Oct. 31, 2012 Subsequent Event [Member]	Oct. 30, 2012 McDonalds [Member]	Oct. 30, 2012 McDonalds [Member] Subsequent Event [Member] sqft	Oct. 30, 2012 Mortgages [Member] McDonalds [Member] Subsequent Event [Member]
Annualized Rental Income or Annualized Net Operating Income											$ 200,000
Proceeds from issuance of common stock	1,000,000	0	200,000	0	200,000	200,000	2,200,000		2,000,000
Share Price	$ 9.00
Common Stock, Shares, Outstanding			22,222	31,222		31,222				300,000
Real Estate Investment Property, at Cost												2,600,000
Real Estate Income (Loss) Per Square Foot											24.74
Area of Real Estate Property												9,094
Real Estate Property, Occupancy Rate								100.00%
Real Estate Property, Weighted Average Remaining Lease Term												11 years 4 months 24 days
Secured Debt													$ 1,200,000
Debt Instrument, Interest Rate, Effective Percentage													4.08%