NEW YORK CITY—The boards of Chambers Street Properties and Gramercy Property Trust Inc. have unanimously approved a merger. The combined company reportedly will be the largest office and industrial net lease REIT, with an enterprise value of approximately $5.7 billion.

Under the terms of the agreement, Chambers Street shareholders will own approximately 56% and Gramercy shareholders will own approximately 44% of the combined company, which will trade on the New York Stock Exchange under the Gramercy name. Gramercy's management team will lead the combined company, including CEO Gordon DuGan, president Benjamin Harris and CFO Jon Clark. Chambers Street CFO Martin A. Reid, who is also serving as its interim president and interim CEO, will head transition as the two REITs combine.

The combined company will own a portfolio of 288 properties and 52 million square feet in major markets throughout the US and Europe. The combination is expected to result in greater size and scale, broader tenant diversification, increased financial flexibility and a more efficient operating platform to drive growth.

“With a larger and more diverse platform, we believe the new Gramercy will be better positioned to pursue larger acquisition opportunities, which we anticipate going forward,” says DuGan. The merger is expected to close in the fourth quarter, subject to customary approval conditions.