An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties
Dane Bowler • 26 Comments
Dane Bowler • 26 Comments
Dec. 17, 2015, 4:09 PM
- The combined company - named Gramercy Property Trust and trading under the GPT symbol - inks a new senior unsecured credit facility consisting of an $850M revolver, a $300M three-year loan, and a $750M five-year loan. This facility replaces previous ones issued to Gramercy and Chambers Street (NYSE:CSG).
- GPT gained 2.9% today, and CSG 3.5%.
Dec. 15, 2015, 4:07 PM
Sep. 28, 2015, 7:32 AM
- Pinellas Park is a 131.8K square foot industrial property 100% leased to a global importer and retailer of fine cigars and cigar accessories. Upon closing, the tenant inked a new 15-year lease expiring in 2030 with 2.5% annual rent increases.
- The annualized straight-line cap rate is 8.3%. The purchase price was $11.1M.
- The special meeting for voting on the Chambers Street Properties (NYSE:CSG) purchase is Dec. 15.
Jul. 1, 2015, 9:34 AM
- Given the boosted size of the company following a merger with Chambers Street Properties (NYSE:CSG), will Gramercy Property Trust (NYSE:GPT) still be sourcing attractive, off-market, one-off deals, CEO Gordon DuGan is asked on the post-merger announcement conference call.
- Acknowledging it'll be a lot harder to add value now with those sorts of deals, DuGan assures there will remain plenty of opportunities to attractively allocate capital. Nominal growth can continue, says DuGan, reminding that's what's more important is EPS growth, and that will continue as well.
- Webcast and presentation slides
- Earlier announced synergies of $15M annually will amount to $0.04 per share for the combined company.
- The near-term action plan after closing: Reduce G&A expense, reduce office exposure with the sale of $500M-$700M worth of properties in year one (long term goal of 25% or less office exposure), grow European portfolio, maintain low leverage, improve quality of earnings, grow the dividend.
- GPT is flat in early action, CSG is lower by 7.7%
- Previously: Chambers Street Properties and Gramercy Property to merge (July 1)
- Seeking Alpha contributor - arguably the hammer on Gramercy Property Trust - Chris DeMuth calls the deal a good one for GPT owners, especially given the management team which will be running the merged company.
Jul. 1, 2015, 7:32 AM
- Under terms of the deal, Gramercy (NYSE:GPT) owners will receive 3.1898 shares of Chambers Street (NYSE:CSG) for each share of GPT they own - about $25.36 per share based on last night's CSG close of $7.95 (GPT closed at $23.37). At closing, Chambers Street shareholders will own about 56% of the combined company, Gramercy shareholders the rest.
- Gramercy CEO Gordon DuGan will be CEO of the merged company (which will operate under the Gramercy name and trade with the GPT symbol), and CSG Non-executive Chairman Charles Black will hold the same role with the merged company.
- The deal is expected to close in Q4.
- The two management's note the merger will create greater size and scale, increased portfolio diversification, and hopefully access to capital at a lower cost. They see about $15M in annual savings by the end of 2016.
- A conference call is set for 8:30.
- Previously: Chambers Street Properties +6.5% on sale rumor (June 10)
Chambers Street Properties is a self-administered real estate investment trust (REIT), focused on acquiring, owning and managing net leased industrial and office properties leased to creditworthy tenants.
Industry: REIT - Office
Country: United States
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