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Blog Exposure – The Blackstone Group Expands its Commercial Real Estate Investments with Acquisition of Gramercy Property Trust

LONDON, UK / ACCESSWIRE / May 09, 2018 / If you want access to our free research report on The Blackstone Group L.P. (NYSE: BX), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BX as the Company's latest news hit the wire. On May 07, 2018, the Company announced that the affiliates of Blackstone Real Estate Partners VIII ("Blackstone Real Estate") have signed an agreement to acquire all the outstanding shares of Gramercy Property Trust (NYSE: GPT) ("GPT" or "Gramercy"). The all-cash transaction is valued at approximately $7.6 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Blackstone Group and Gramercy Property Trust most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:



GPT primarily invests in single-tenant industrial properties and had a portfolio of assets with approximately 81 million square feet at the end of FY17.

Sharing his views on the acquisition, Tyler Henritze, Head of US Real Estate Acquisitions, Blackstone, said:

"We are pleased to acquire Gramercy and its strong portfolio of assets."

Gordon DuGan, Trustee and Chief Executive Officer (CEO), GPT, added:

"I speak for Ben Harris, Nick Pell, and the entire team at Gramercy to say that 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 fulfills our Board of Trustees' mission to maximize shareholder value."

Transaction Highlights

As per the terms of the agreement, Blackstone Real Estate has agreed to pay $27.50 in cash for each GPT share. The offer price represents a 15% premium on the closing price of GPT share on May 04, 2018, the last trading day before the deal was announced. The deal has been approved by the Board of Directors of GPT.

The deal is expected to close in H2 2018, subject to the receipt of regulatory and shareholders approvals and other closing conditions. The deal is not contingent on any financing from Blackstone.

The transaction provides for GPT's shareholders to receive the previously announced dividend of $0.375 per share for Q2 2018, which is payable on July 16, 2018. However, if the deal is not closed after October 15, 2018, GPT's shareholders are entitled to receive approximately $0.004 per share for each day starting after October 15, 2018, till the final date of closing the deal.

GPT is planning to schedule a shareholders' meeting to take vote on the deal, the date for which is yet to be finalized.

Additionally, GPT shared that it would be disclosing its financial results for Q2 2018, ending on June 30, 2018, in July 2018. However, due to the current deal, the Company will not be hosting the conference call and webcast to discuss the Q2 2018 results.

Consolidation in the Commercial Real Estate Business

Blackstone has been strengthening its Commercial Real Estate portfolio with key acquisitions. In March 2018, Blackstone Real Estate Income Trust, Inc. had acquired Canyon Industrial Portfolio for approximately $1.8 billion. Canyon Industrial Portfolio's commercial real estate assets included 146 last-mile infill warehouses and distribution buildings in key urban areas. In January 2018, Blackstone Property Partners had signed an agreement to acquire Canada's Pure Industrial Real Estate Trust in a $1.9 billion deal. Pure Industrial Real Estate Trust owns and operates a portfolio of industrial properties in the US and Canada.

Blackstone has been focusing on commercial properties that provide a predictable and steady income. The current acquisition of GPT is a strategic move in this direction. The recent boom in the ecommerce space has pushed up the demand for warehouse space from retailers and other retail players. In recent times, real estate investment trusts (REITs) investing in warehouses and logistics centers have been doing much better compared to REITs that have invested in malls, rental apartments, or office buildings. This has made investment in commercial real estate a lucrative opportunity. Just a few weeks back, the commercial real estate business witnessed one of the largest deal when Prologis, Inc. signed an agreement on April 29, 2018, to acquire DCT Industrial Trust Inc. in a deal valued at approximately $8.4 billion.

About Gramercy Property Trust

New York-based GPT is a leading global investor and asset manager of commercial real estate. The Company buys single-tenant buildings in top industrial markets in the US and Europe and then manages the portfolio for stable long-term tenancy and high tenant retention. In May 2017, GPT divested Gramercy Europe to a consortium of clients managed by AXA Investment Managers for nearly $1.1 billion. In August 2017, GPT formed a joint venture to invest in newly constructed, class A, ecommerce distribution centers across the US.

About The Blackstone Group L.P.

Founded in 1985, Blackstone is one of the world's leading investment firms. Its business includes private equity and real estate funds, hedge fund solutions, and credit funds. It has 25 offices worldwide supported by 2,300 employees.

Blackstone's real estate business was founded in 1991 and its portfolio includes hotel, office, retail, industrial, and residential properties in the US, Europe, Asia, and Latin America. Some of the major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics) and prime office buildings in major cities of the world. Blackstone Real Estate also operates one of the leading real estate finance platforms, including the management of the publicly-traded Blackstone Mortgage Trust. It has approximately $120 billion in investor capital under management.

Stock Performance Snapshot

May 08, 2018 - At Tuesday's closing bell, The Blackstone Group's stock slightly fell 0.75%, ending the trading session at $31.64.

Volume traded for the day: 3.71 million shares.

Stock performance in the last month – up 3.03%; and past twelve-month period – up 5.05%

After yesterday's close, The Blackstone Group's market cap was at $36.95 billion.

Price to Earnings (P/E) ratio was at 13.75.

The stock has a dividend yield of 10.75%.

The stock is part of the Financial sector, categorized under the Asset Management industry. This sector was up 0.2% at the end of the session.


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