May 19, 2020

Blackstone to acquire Gramercy for $7.6bn

Real estate
Mergers & Acquisitions
Pouyan Broukhim
2 min
Blackstone to acquire Gramercy for $7.6bn

The real estate arm of multinational private equity firm Blackstone has announced that it has agreed to acquire Gramercy Property Trust in a deal valued at $7.6bn.

The deal will further bolster the company's Blackstone Real Estate Partners division that has continued to grow into a leading market player in recent years.

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“We are pleased to acquire Gramercy and its strong portfolio of assets,” said Tyler Henritze, Head of US Real Estate Acquisitions for Blackstone.

New York-based Gramercy will receive $27.50 per share in the transaction, representing a 23% premium compared to the company's 30-day average share price.

“We believe this validates the quality of the portfolio and platform that we have built,” said Gord DuGan, Trustee and Chief Executive Officer of Gramercy. “Entering into this transaction with Blackstone fulfills our Board of Trustees’ mission to maximize shareholder value.”

Morgan Stanley acted as Gramercy's financial advisor, whilst Citigroup and Bank of American Merrill Lynch acted as Blackstone's. The transaction is expected to close in H2 2018.

The deal comes just a few months after Blackstone agreed to acquire a majority 55% stake in Thomas Reuters' Financial & Risk Business for a fee of approximately $17bn.

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