Gramercy Property Trust Inc. (GPT)

[Enterprising Investor]

Gramercy Property Trust Announces Agreement to Purchase Garrison’s 50% Interest in the $395 Million Bank of America Portfolio and Announces a New $400 Million Senior Unsecured Credit Facility (5/12/14)

NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust Inc. (NYSE:GPT), a real estate investment trust, announced today that it has entered into a membership interest purchase and sale agreement with an affiliate of Garrison Investment Group (“Garrison”) to acquire Garrison’s 50% interest in a joint venture (the “Joint Venture”) that owns a portfolio of 67 properties (plus three held-for-sale properties) located across the United States totaling approximately 3.1 million square feet and is 96% leased to Bank of America, N.A. The Company currently owns the remaining 50% interest of the Joint Venture. The purchase and sale agreement values the Joint Venture assets at approximately $395.0 million.

The Company intends to acquire Garrison’s interest in the Joint Venture with approximately $92.2 million in cash, subject to various prorations and credits. At closing, the Company intends to repay the existing $200.0 million loan encumbering the portfolio with proceeds from a new unsecured credit facility. The Joint Venture acquisition is expected to close in the second quarter of 2014 and is subject to customary closing conditions.

In addition, the Company announced today that it signed a commitment letter with J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Lead Arrangers, JPMorgan Chase Bank, N.A. and Bank of America, N.A. for a new $400.0 million senior unsecured credit facility, consisting of an up to $200.0 million senior revolving credit facility (the “Revolving Credit Facility”) and an up to $200.0 million senior term loan (the “Term Facility”). The Revolving Credit Facility has an initial term of four years with an option for a one-year extension and will replace the Company’s senior secured credit facility. The Term Facility has an initial term of five years and will be used to repay the existing $200.0 million mortgage loan encumbering the Joint Venture portfolio properties. The Company has the ability to increase the amount of the facilities up to a maximum amount of $800.0 million, in the aggregate, subject to lender approval and satisfaction of certain customary conditions.

About Gramercy Property Trust

Gramercy Property Trust Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. The Company also operates an asset management business that manages for third parties, including our joint venture partners, commercial real estate assets.

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 212-297-1000.

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