Gramercy Property Trust Announces Acquisitions of Four Assets in the E-Commerce Joint Venture

NEW YORK--()--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.

Contacts

For Gramercy Property Trust
Ashley M. Mancuso, 212-297-1000
Investor Relations

Contacts

For Gramercy Property Trust
Ashley M. Mancuso, 212-297-1000
Investor Relations