Blackstone’s eighth global real estate fund is expanding its portfolio with the acquisition of Gramercy Property Trust for $7.6bn (€6.4bn).
Gramercy, which manages single-tenant industrial properties, said it has entered into a definitive agreement with affiliates of the Blackstone Real Estate Partners VIII, under which Blackstone will buy all of Gramercy’s common shares for $27.50 a share in an all-cash deal.
The amount being offered by Blackstone represents a 15% premium to Gramercy share’s last closing price.
Gordon DuGan, trustee and CEO of Gramercy, said: “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.”
Tyler Henritze, head of US real estate acquisitions for Blackstone, said: “We are pleased to acquire Gramercy and its strong portfolio of assets.”
The acquisition is expected to complete in the second half of 2018, subject to conditions, including the approval of Gramercy’s shareholders.
US private equity group Blackstone raised $15.8bn, with leverage at 60-65%, for Real Estate Partners VIII in 2015.
Jon Gray, Blackstone’s global head of real estate, said at the time that the size of fund VIII gave it the ability to commit capital in scale with “speed and certainty.”
Blackstone’s previous deals include the $6bn acquisition of Strategic Hotels & Resorts and a $3.3bn deal to buy GE Capital’s US equity assets.
