Gramercy Property Trust, the Commercial real estate manager, has revealed that the company will be acquired by Blackstone, the investment firm, in a deal that is worth $7.6bn (£5,6bn).
The company disclosed that the said transaction was unanimously approved by the board of trustees of Gramercy and that the sale price of $27.50 per share was a premium of 15 percent on the closing stock price of the firm on Friday.
Commenting on the said acquisition, Gordon DuGan, the CEO of Gramercy, stated: “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 fulfils our Board of Trustees’ mission to maximize shareholder value”
In the financial statement of the company that was released in April, Gramercy revealed that it had observed an increase in revenue amounting to 15 percent during the first quarter as compared to the previous year, with the company reporting sales amounting to $149.5m.
The head of US real estate acquisitions for Blackstone, Tyler Henritze, stated: “We are pleased to acquire Gramercy and its strong portfolio of assets.”
The said deal is anticipated to go ahead during the second half of this year, as it is pending approval from the shareholders of Gramercy. Morgan Stanley is acting as the financial adviser of Blackstone, with legal support provided by Simpson Thacher.
The said deal will add to the real estate business of Blackstone, which has risen as a bigger contributor to earnings during the recent years compared to the private equity division of the company.
Gramercy owns around 362 properties with about 80.9 million rentable square feet at an occupancy of 97.3 percent.
The real estate business of Blackstone was established way back in 1991 and has investor capital under management amounting to approximately $120bn.