Grubb & Ellis in Investment Pact - Analyst Blog
18 October 2011 - 8:30PM
Zacks
Grubb & Ellis Company
(GBE) recently announced that it has entered into
negotiations with a subsidiary of C-III Capital Partners LLC, which
has partnered with an affiliate of Colony Capital LLC for an
investment deal with the company.
A C-III affiliate has agreed to
invest $10 million in Grubb & Ellis by enhancing the company's
existing $18 million credit facility with Colony Capital and will
purchase $4 million of Colony's existing facility. Through this
transaction, both C-III and Colony Capital will emerge as
significant stakeholders in Grubb & Ellis.
C-III Capital Partners is an
affiliate of Island Capital Group LLC, which owns controlling
interests in a number of businesses and manages assets in excess of
$150 billion. Colony Capital is a private, international investment
firm focusing primarily on debt and equity investments in real
estate-related assets and operating companies.
Capital Partners and Colony are
organizations with industry expertise and capital base, which is
necessary for supplementing Grubb & Ellis clients’ offerings
and thereby providing significant growth opportunities for the
company.
Grubb & Ellis is one of the
largest commercial real estate services and investment companies in
the world. The company offers transaction, management,
consulting and investment services, which are supported by highly
regarded proprietary market research and extensive local expertise.
The company is a leading sponsor of real estate investment programs
through its investment management business.
Grubb & Ellis currently retains
a Zacks #3 Rank, which translates into a short-term Hold rating. We
are also maintaining our long-term Neutral recommendation on the
stock. One of its competitors, Jones Lang Lasalle
Inc. (JLL) holds a Zacks #4 Rank, which translates into a
short-term Sell rating.
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