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Blackstone to Acquire Gramercy Property in $7.6 billion buyout deal
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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 Gramercyโ€™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. Todayโ€™s announcement follows Prologisโ€™ 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 Welltowerโ€™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 Gramercyโ€™s legal advisors include Wachtell, Lipton, Rosen & Katz. BofA Merrill Lynch and Citigroup Global Markets are acting as Blackstoneโ€™s financial advisors and Simpson Thacher & Bartlett is acting as legal advisor to Blackstone.

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