Following a string of mergers and acquisitions announced on Monday comes another deal: Blackstone Group announced it would acquire Gramercy Property Trust, a commercial real estate asset management company, in a cash deal valued at $7.6 billion.
The cash deal represents a premium of 15% over the closing stock price on May 4 and a 23% premium over the 30-day volume-weighted average share price.
The Blackstone Gramercy deal has been unanimously approved by Gramercy’s Board of Trustees.
As per the terms of the deal, Gramercy shareholders will receive the previously announced Q2 dividend of $0.375 per share on July 16, 2018. Once the agreement is completed by October 15, Gramercy shareholders will continue to receive a per diem amount of $0.004 per share for each day until the closing date.
The deal is expected to close by the second half of 2018.
Gramercy CEO Gordon DuGan said in a statement the deal will maximize long-term shareholder value.
Real estate asset management company Gramercy Property Trust specializes in acquiring commercial real estate leased in Europe and the United States. Today’s announcement follows Prologis’ proposed acquisition of industrial real estate asset management company REIT DCT Industrial Trust for $8.4 billion in stock.
Leading CEO magazines have reported a flux of deals in recent weeks. This includes Health care REIT Welltower’s definite agreement to acquire Quality Care Properties in an all-cash deal worth $1.95 billion. Mortgage REIT Annaly Capital Management is set to acquire MTGE Investment Corp. in a cash-and-stock deal valued at approximately $900 million.
Morgan Stanley is acting as an exclusive financial advisor to Gramercy and Eastdil Secured is its real estate consultant. Among Gramercy’s legal advisors include Wachtell, Lipton, Rosen & Katz. BofA Merrill Lynch and Citigroup Global Markets are acting as Blackstone’s financial advisors and Simpson Thacher & Bartlett is acting as legal advisor to Blackstone.
