Real estate finance company Gramercy Capital Corp agreed to buy American Financial Realty Trust for about $1.1 billion in cash and stock, the companies said on Monday. New York-based Gramercy is buying American Financial's common stock for $5.50 per share in cash and 0.12096 shares of Gramercy common stock.
Gramercy will also assume about $2.3 billion in American Financial debt. Shareholders of American Financial, a landlord focused on banking and financial services properties, are expected to own about 31 percent of Gramercy's outstanding shares. Gramercy, a mortgage real estate investment trust, expects the acquisition will add about 27 million square feet of commercial real estate in 37 states to its portfolio.
American Financial shares, which closed on Friday at $6.45, have lost about 40 percent of their value since June. Gramercy also announced on Monday that a fund managed by Morgan Stanley Real Estate bought $100 million of Gramercy stock last week at $26.25 each.
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