Real estate investment fund Gramercy Europe, led by chief executive Alistair Calvert (pictured above), has completed a management buyout of the business from Blackstone, following Blackstone’s purchase of Gramercy’s US parent company last week.
Gramercy Europe will now launch a fourth vehicle, targeting a final close in the first quarter of 2019, with around €400m of equity commitments, primarily from pension funds.
See also: Blackstone buys Gramercy Property for $7.6bn
Calvert said: “Today’s announcement positions us to continue capitalising on both the structural changes underpinning ongoing demand from a range of occupiers, especially in the e-commerce sector, for fit-for-purpose warehouses, and also the deep relationships that we have built with some of Europe’s leading businesses, which increasingly require this type of space, as well as a variety of other stakeholders.
“We expect the strength of the eurozone to provide a favourable backdrop as we deploy the remaining proceeds of GPE III and build a pipeline for 2019. Whilst we are seeing yield compression impacting on certain markets, a result of an increasingly competitive backdrop as more global money looks to access the sector, we have closed 10 transactions this year where we are confident of adding value and expect to close more before the year end.”
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