New York-based real estate investment trust Gramercy Capital’s shares rose by as much as 14 percent after the company agreed to settle $549.7 million in mortgage debt by giving control of many of its buildings over to lenders, Bloomberg News reported.
Around 317 commercial properties were surrendered yesterday to lender KBS Debt Holdings in an initial transfer, Gramercy said in a statement.
“What remains of Gramercy may be an attractive acquisition target both for buyers of discounted financial assets and someone looking to acquire a public real estate platform,” Ben Thypin, director of market analysis for New York-based Real Capital, told Bloomberg. “The company may be an appealing target for private-equity firms with dry powder committed to real estate that they need to deploy.”
Gramercy will retain 58 properties, according to the agreement. [Bloomberg]