NEW YORK CITY-It’s official: the US Bankruptcy Court for the Southern District of New York has approved the sale of BGC Partners Inc. to acquire substantially all the assets of Grubb & Ellis, according to a court order filed on March 27. As a result, BGC expects to close the transaction shortly, the company says in a statement directly after the filing.
According to the order, the court ruled that the sale is “a valid exercise of the debtors’ business judgment” and considered the sale process as “fair, robust and pursued in good faith.” The fusion of the two companies will give Newmark Knight Frank and Grubb & Ellis more than 250 million square feet of property, 100 offices in North America and facilities management, as well as national appraisal business, says a statement from BGC.
The action comes after Grubb canceled a bankruptcy auction and approved bidding procedures and a $30 million stalking horse contract from BGC, GlobeSt.com previously reported. Grubb filed for bankruptcy pursuant to chapter 11 on Feb. 20, following a thorough and rigorous process and the evaluation of all available options. After filing for bankruptcy protection and signing an agreement with BGC on Feb. 21, the company planned to operate its business as a debtor-in-possession and implemented the transaction as an asset sale under Section 363 of the US Bankruptcy Code.
Michael Lehrman, global head of real estate at BGC says in a statement that the expansion of BGC's commercial real estate platform "creates exciting new opportunities" for the brokerage firms and for clients as well. "Together we are creating one of the most exciting platforms in the real estate market, one that is well positioned to deliver the unwavering service excellence that our clients expect, while enhancing opportunities for our brokers and employees," he says.
BGC, a global brokerage firm, recently acquired Newmark & Co. Real Estate Inc., which operates as Newmark Knight Frank in New York City and Knight Frank in London. BGC gained control of Newmark’s US commercial real estate brokerage and advisory firm, plus a controlling interest in its affiliated companies, encompassing 425 brokers.
Cantor Fitzgerald & Co., an affiliate of Cantor Fitzgerald, LP acted as a financial adviser to BGC in connection with this transaction. The case is filed under 12-10685-mg in US Bankruptcy Court of the Southern District of New York (Manhattan) under United States Bankruptcy Judge Martin Glenn.
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