Blackstone inks €6.4b takeover of Gramercy Property Trust

US asset management giant Blackstone has agreed a deal to acquire commercial real estate landlord Gramercy Property Trust for about $7.6 bn (€6.4 bn) in cash.

Gramercy Property Trust, which in Europe operates through its €1 bn Gramercy Europe unit, is selling the business at $27.50 a share, or a 15% premium to Gramercy’s Friday closing price.

The company's portfolio encompasses 81 million sq ft of industrial and office assets in major markets across the US.

Commenting on the acquisition, Gordon DuGan, Trustee and Chief Executive Officer of Gramercy said the deal validated the quality of the portfolio and platform that the Gramercy management team has built. 'Entering into this transaction with Blackstone fulfills our board of trustees’ mission to maximize shareholder value.'

Blackstone is making the purchase for its Blackstone Real Estate Partners VIII fund. 'We are pleased to acquire Gramercy and its strong portfolio of assets,' added Tyler Henritze, head of US real estate acquisitions for Blackstone.

The US group has been fairly active in the corporate space recently, launching an unsolicited bid for Spanish REIT Hispania earlier this year. Completion of the Gramercy transaction is currently expected to occur in the second half of 2018.

Morgan Stanley & Co is acting as exclusive financial advisor to Gramercy. Eastdil Secured LLC is acting as real estate consultant to Gramercy. Citigroup Global Markets and BofA Merrill Lynch are acting as Blackstone’s financial advisors in connection with the transaction.


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