(Bloomberg)—TPG Real Estate and Gramercy Property Trust agreed to create a venture to buy as much as $1 billion of properties over three years.
In addition, Gramercy Property Trust sold a 75 percent stake in a portfolio of six office assets valued at $187.5 million to TPG Real Estate as part of the agreement, the companies said in a statement on Monday. The portfolio will be bought by the new $400 million venture, called Strategic Office Partners, in which Gramercy will have a 25 percent interest.
The buildings are located in Nashville, Minneapolis and the Los Angeles, San Francisco, and San Diego areas. The partnership will be initially financed with a $200 million non-recourse secured credit facility from an institutional lender and equity from the companies.
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