Gramercy Property Trust Announces Acquisitions of Four Assets in the E-Commerce Joint Venture
April 06 2018 - 6:30AM
Business Wire
Gramercy Property Trust (NYSE: GPT), a real estate
investment trust, announced today that it has completed the
acquisitions of four of the assets identified in the initial
portfolio transaction for the E-Commerce Joint Venture (the
“Venture”). The Venture was launched in August 2017 to acquire, own
and manage Class A distribution centers leased to leading
e-commerce tenants on long-term leases across the country.
The initial portfolio is comprised of six newly constructed
Class A bulk distribution properties totaling 5.2 million square
feet, for a purchase price of $537 million. The first two
properties total $178 million and closed on January 31, 2018 and
the second pair of properties total $181 million and closed on
April 3, 2018. The remaining two assets under contract total $179
million and are expected to close between late 2018 and early 2019.
Each building will be 100% leased to a leading e-commerce company
on an initial 15-year term and annual 1.75% to 2.00% rental
escalations. The buildings are located in Dallas, TX, Inland
Empire, CA (2), Jacksonville, FL, Southern NJ and Winchester,
VA.
Gramercy is a 51% partner in the Venture, which has been
financed with a mix of approximately 60% property-level mortgage
debt, OP units and cash from GPT and its partner, a sovereign
investor. The breakdown of sources for completed acquisitions and
the remaining two acquisitions are detailed below:
60% LTV and 51% GPT Equity* Sources of Funds ($mm)
Closed in 2018 Under
Contract Total Cash
$25.1 $4.4 $29.5 OP Units (issued at
contract price of $29.19 per share) $45.7
$32.1 $77.8 Loan Proceeds
$220.0 $107.0 $327.0 JV Partner
Equity $68.1 $35.0
$103.1
Total $358.9 $178.5 $537.4
*Estimated for buildings under
contract.
About Gramercy Property Trust
Gramercy Property Trust is a leading global investor and asset
manager of commercial real estate. The Company specializes in
acquiring and managing high quality, income producing commercial
real estate leased to high quality tenants in major markets in the
United States and Europe.
Forward Looking Statements
This press release contains forward-looking information based
upon the Company's current best judgment and expectations. Actual
results could vary from those presented herein. The risks and
uncertainties associated with forward-looking information in this
release include, but are not limited to, factors that are beyond
the Company's control, including the factors listed in the
Company's Annual Report on Form 10-K. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Investors should not place undue reliance upon forward-looking
statements.
To review the Company’s latest news releases and other corporate
documents, please visit the Company's website at www.gptreit.com or
contact Investor Relations at 888-686-0112.
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version on businesswire.com: https://www.businesswire.com/news/home/20180406005149/en/
For Gramercy Property TrustAshley M. Mancuso,
212-297-1000Investor Relations
Gramercy Property Trust (NYSE:GPT)
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