Gramercy recently announced the closing of their two previously discussed transactions, one the Indianapolis industrial properties last week and the much larger Bank of America portfolio transaction today.
Gramercy Capital Corp. Announces the Acquisition of a $27.125 Million Industrial Portfolio
Gramercy Capital Corp. Closes the Previously Announced Acquisition of a $485 Million Portfolio in a Joint Venture with Garrison Investment Group
Both transactions closed at nearly the same terms as previously described, which speaks well for management transparency and their ability to meet expectations. The industrial properties were purchased for cash, but management has discussed the advantage of being able to close with cash quickly and then refinancing once the dust settles, so expect to see a mortgage put on the properties shortly.
However, the closing of these properties doesn't change my valuation of the common shares as Gramercy still needs to increase assets, and thus the equity, to spread their overhead costs across a larger base. One news item I'm looking forward to is the sale of the CDO equity and management business (hopefully before year end), if the sale brings in a material amount it would improve the outlook by freeing up additional cash for investment without issuing shares and clear most of the complexity in the balance sheet.
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