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Blackstone (BX) to Acquire Gramercy Property for $7.6B
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The Blackstone Group L.P. (BX - Free Report) recently entered into an agreement with Gramercy Property Trust, wherein the former will acquire all the outstanding shares of the latter. The all-cash deal has been valued at $7.6 billion.
Per the agreement, affiliates of Blackstone Real Estate Partners VIII will pay $27.50 for each of Gramercy’s shares. Notably, the offer represents a premium of 15% to Gramercy’s closing price on May 4.
Gramercy is a commercial real estate manager that specializes in acquiring and managing high-quality, income-producing commercial real estate leased to high-quality tenants in the United States and Europe. Based in New York, the company had total liabilities of nearly $3.14 billion as of Mar 31, 2018.
Gordon DuGan, Trustee and the chief executive officer of Gramercy said, “I speak for Ben Harris, Nick Pell and the entire team at Gramercy to say that 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.”
In recent years, Blackstone's real estate business has been a major contributor to its earnings growth. Since the past few years, the private equity owner of real estate has been making a shift toward industrial real estate. The company has been purchasing various properties that offer a predictable income stream.
In January, the company agreed to buy Canada’s Pure Industrial Real Estate Trust, while in March, it acquired the Canyon Industrial Portfolio, thus adding 22 million square feet of space.
Given its strong global presence and broad product diversification, Blackstone remains well positioned for organic growth. Also, the company's fundraising ability remains robust amid challenging operating environment.
Notably, subject to customary closing conditions, the Gramercy deal is expected to close during the second half of 2018. Shareholders of Gramercy will also receive the second-quarter dividend of 37.5 cents per share that is scheduled to be paid on Jul 16.
Morgan Stanley (MS - Free Report) acted as the financial adviser of Gramercy. Citigroup Inc. (C - Free Report) and Bank of America Corporation’s (BAC - Free Report) Merrill Lynch were the advisors for Blackstone.
Blackstone’s shares have gained 6.3% in the past year, underperforming 14.3% growth of the industry.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Blackstone (BX) to Acquire Gramercy Property for $7.6B
The Blackstone Group L.P. (BX - Free Report) recently entered into an agreement with Gramercy Property Trust, wherein the former will acquire all the outstanding shares of the latter. The all-cash deal has been valued at $7.6 billion.
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Per the agreement, affiliates of Blackstone Real Estate Partners VIII will pay $27.50 for each of Gramercy’s shares. Notably, the offer represents a premium of 15% to Gramercy’s closing price on May 4.
Gramercy is a commercial real estate manager that specializes in acquiring and managing high-quality, income-producing commercial real estate leased to high-quality tenants in the United States and Europe. Based in New York, the company had total liabilities of nearly $3.14 billion as of Mar 31, 2018.
Gordon DuGan, Trustee and the chief executive officer of Gramercy said, “I speak for Ben Harris, Nick Pell and the entire team at Gramercy to say that 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.”
In recent years, Blackstone's real estate business has been a major contributor to its earnings growth. Since the past few years, the private equity owner of real estate has been making a shift toward industrial real estate. The company has been purchasing various properties that offer a predictable income stream.
In January, the company agreed to buy Canada’s Pure Industrial Real Estate Trust, while in March, it acquired the Canyon Industrial Portfolio, thus adding 22 million square feet of space.
Given its strong global presence and broad product diversification, Blackstone remains well positioned for organic growth. Also, the company's fundraising ability remains robust amid challenging operating environment.
Notably, subject to customary closing conditions, the Gramercy deal is expected to close during the second half of 2018. Shareholders of Gramercy will also receive the second-quarter dividend of 37.5 cents per share that is scheduled to be paid on Jul 16.
Morgan Stanley (MS - Free Report) acted as the financial adviser of Gramercy. Citigroup Inc. (C - Free Report) and Bank of America Corporation’s (BAC - Free Report) Merrill Lynch were the advisors for Blackstone.
Blackstone’s shares have gained 6.3% in the past year, underperforming 14.3% growth of the industry.
Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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