Gramercy Sells Stake in European Development Trust

By Keith Loria, Contributing Editor

Gramercy Property Trust industrial property

New York—Gramercy Property Trust has disposed of a 74.9 percent interest in the Goodman Europe Development Trust joint venture, comprised of nine logistics warehouses in Germany and France, for $251.9 million and net cash proceeds of $149.5 million, to Gramercy Property Europe plc.

GPT retained a 5.1 percent net equity interest in the joint venture, which is valued at approximately $10.8 million and a 14.2 percent net equity interest in Gramercy Property Europe plc, valued at approximately $56 million.

In a separate deal, GPT disposed of its joint venture with Duke Realty Corp., in which seven of eight properties were distributed to GPT. The assets comprised a total of 4.2 million square feet and consisted of five industrial properties and two office properties located in Dallas, Chicago, Indianapolis, Columbus, Jacksonville, Tampa and Nashville. The joint venture retained a 1 million-square-foot industrial property located in Phoenix.

According to the company’s First Quarter 2016 supplemental report, GPT’s plan is to sell $1.1 to $1.2 billion in assets and reduce office NOI to 25 percent of its portfolio.

So far in 2016, Gramercy has disposed of nearly $991.5 million of assets in the United U.S. and Europe at a weighted average 6.4 percent exit cap rate.

In total, Gramercy’s total exposure to the U.K. is $47 million in net capital and $2 million in NOI; and $66 million net capital and $9 million NOI in Europe.

Gramercy currently has approximately $289.1 million of dispositions under contract or letter of intent and approximately $350.5 million of assets in the market for sale. That includes the sale of 75 percent of GPT’s interest in a portfolio of office properties into a joint venture.

Image courtesy of Gramercy Property Trust