New York private equity firm Blackstone to buy Gramercy Property Trust for $7.6bn
Commercial real estate manager Gramercy Property Trust has announced that the company will be acquired by investment firm Blackstone for $7.6bn (£5,6bn).
The company said the transaction was approved unanimously by Gramercy’s board of trustees, and that the sale price of $27.50 per share was a 15 per cent premium on the firm’s closing stock price on Friday.
Commenting on the acquisition Gramercy CEO Gordon DuGan said: “We are very pleased to enter into this transaction. We believe this validates the quality of the portfolio and platform that we have built. Entering into this transaction with Blackstone fulfills our Board of Trustees’ mission to maximize shareholder value”
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In its financial statement released last month, Gramercy announced that it had seen a 15 per cent increase in revenue in the first quarter compared to last year, with the company reporting $149.5m in sales.
“We are pleased to acquire Gramercy and its strong portfolio of assets,” said Tyler Henritze, head of US real estate acquisitions for Blackstone.
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The deal is expected to go ahead in the second half of the year, pending approval from Gramercy’s shareholders. Morgan Stanley is acting as Blackstone’s financial adviser, with Simpson Thacher providing legal support.
Gramercy owns 362 properties with approximately 80.9 million rentable square feet at 97.3 per cent occupancy.
Blackstone’s real estate business was founded in 1991 and has approximately $120bn in investor capital under management.