Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 07 May 2018

Blackstone to Buy Gramercy Property for $7.6Bln

Written by 
Rate this item
(0 votes)

Blackstone Group is further bolstering its presence in the industrial property sector by agreeing to buy Gramercy Property Trust in a deal valued at $7.6 billion.

The investment manager is buying the New York REIT for $27.50/share in cash and assuming roughly $2.8 billion of existing debt, mostly term loans. The price Blackstone is paying amounts to a 23 percent premium over Gramercy's 30-day average share price.

The company is making the purchase through its Blackstone Real Estate Partners VIII LP fund, a $16.1 billion investment vehicle. The acquisition is slated to be completed before the end of the year and must first be approved by Gramercy shareholders.

Gramercy is the former Gramercy Capital Corp., a finance company that repositioned itself as an equity REIT in 2013. At the time, its portfolio was largely net-leased to tenants. In 2015, it substantially increased its size by merging with Chambers Street...


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Sector: Industrial
  • Subject: Mergers & Acquisitions (M&A)
  • Company: Blackstone Real Estate Advisors, Gramercy Capital Corp.
  • Valuation: More than $150 million
  • Private: Yes
Read 349 times

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds