LONDON—Gramercy Property Trust Inc. is leadinga joint venture of investment partners to form GramercyEurope, which has closed with 350 million euros in equitycapital, or about US $428 million. The London-based JV will targetsingle-tenant net leased assets and sale-leaseback opportunitiesacross Europe.

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“We believe this new investment vehicle gives Gramercyshareholders access to European net leased assets in scale and inpartnership with deep-pocketed and sophisticated partners,” saysGordan DuGan, GPT's CEO and an appointee toGramercy Europe's board. “Gramercy will have a fully-integratedteam on the ground that we have worked with in the past and astrategy that I have many years of experience with. We hope toreplicate the success we have had with Gramercy Property Trust withour effort on Gramercy Europe.”

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Simultaneously with the closing on the Gramercy Europe JV, GPTand its partners purchased ThreadGreen EuropeLtd., which will manage the investment vehicle on a day-to-daybasis. Deal terms were not disclosed.

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ThreadGreen's principals, including managing directorAlistair Calvert and director MichaelHeal, ran the London office of W. P.Carey from 2004 to 2006, during DuGan's tenure as CEO ofthat company. ThreadGreen currently manages about US $250 millionworth of single-tenant industrial and office assets in Germany,Finland and Switzerland.

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GPT's partners in the Gramercy Europe venture include investmententities managed by EJF Capital LLC, Fir TreePartners and Senator Investment Group LP.Gramercy Europe will invest mainly in single-tenant industrial,office and specialty retail assets in Germany, the Netherlands, theNordic region, the United Kingdom and other targeted Europeancountries.

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The total equity capital available to Gramercy Europe includesan initial commitment of 250 million euros from GPT and itsco-investors, along with an additional capital accordion of 100million euros. Along with DuGan and other representatives appointedby GPT, Gramercy Europe's board includes LindsaySparacino of EJF, Jarret Cohen of FirTree and Michael Simanovsky of Senator.

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DuGan's former company, WPC, has been an active investor inEuropean net lease for some time. This past Friday, WPC announcedthe acquisition of Royal Vopak's headquarters building and anadjacent multi-tenant high-rise in Rotterdam, the Netherlands,through its CPA 18—Global non-traded REIT. The purchase price was$86 million; the low-rise tower will be net-leased to Royal Vopak,the world's largest independent tank storage provider, on along-term basis. Starwood Capital Group has alsomade recent investments in Norway and Sweden.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.