Gramercy Property Europe was established as recently as December 2014, and so the sale to the AXA IMRA group will allow investors to cash in after a relatively short period, EG reported. The publication reported that GPT engaged Eastdil Secured at the beginning of 2017 to explore options for the Gramercy Europe portfolio, after initially considering an initial public offering for the fund. It further noted that the deal with AXA IMRA was seen as a precursor to the Blackstone Group's possible sale of its own European logistics platform, which the Wall Street Journal says could be worth more than $US10.8 billion.

Netherlands

NEW YORK CITY—A Europe-focused fund sponsored by Gramercy Property Trust has agreed to sell 100% of its mainly logistics assets to a consortium of clients managed by AXA Investment Managers — Real Assets. The deal values the assets at €1.0 billion (US$1.1 billion), with an exit cap rate of approximately 6.2%.

Under the terms of the sale agreement, Gramercy Europe (Jersey) Ltd., GPT's Jersey-based investment and asset management subsidiary, will manage the assets for the AXA IMRA consortium for one year following the closing. It's expected to occur in the third quarter.

Estates Gazette reported in March that AXA IMRA would recapitalize the Gramercy Europe portfolio, on financial terms consistent with the deal announced Tuesday by GPT. The portfolio runs to about 40 properties in the UK, France, Germany, Poland and Benelux, totaling approximately 11 million square feet.

The mainly single-tenant portfolio was amassed primarily through sale-leasebacks, with many of the properties developed as build-to-suits, EG reported in March. A key attraction of the portfolio to prospective buyers is its long unexpired lease terms.

Gramercy Property Europe was established as recently as December 2014, and so the sale to the AXA IMRA group will allow investors to cash in after a relatively short period, EG reported. The publication reported that GPT engaged Eastdil Secured at the beginning of 2017 to explore options for the Gramercy Europe portfolio, after initially considering an initial public offering for the fund. It further noted that the deal with AXA IMRA was seen as a precursor to the Blackstone Group's possible sale of its own European logistics platform, which the Wall Street Journal says could be worth more than $US10.8 billion.