The Blackstone Group LP
) has reached an agreement with real estate finance company -
Capital Trust, Inc.
) - to acquire the latter's investment unit. Further, the company
is set to purchase 18.2% stake in Capital Trust, giving it the
corresponding managerial rights. Overall, Blackstone will shell out
approximately $30 million for this deal.
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CAPITAL TRUST-A (CT): Free Stock Analysis
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CT Investment Management Co., LLC (CTIMCO) - a wing of Capital
Trust, which administers its investment management operations- will
be bought over by an affiliate of Blackstone - Blackstone's Real
Estate Debt Strategies (BREDS) - for a sum of $20 million.
Moreover, along with the acquisition of the investment management
unit, Blackstone will purchase five million shares of newly issued
Capital Trust common stock at a price of $2.00 per share.
Concurrent with the deal, Capital Trust is expected to announce a
special cash dividend. The dividend will be paid as soon as
possible, subject to approval from the shareholders. The dividend
will be funded through the available cash in hand, prior to the
transaction, and the sales proceeds from CTIMCO as well as related
Earlier this month, Blackstone made an agreement to buy Vivint Inc
- a security provider that offers home automation and technology
services - for a sum of about $2 billion. The deal is anticipated
to conclude by the end of the current year.
Further, Blackstone announced that it would acquire GCA Services
Group from Nautic Partners, L.L.C. and other minor shareholders.
The deal, which is anticipated to be completed in October this
year, is subject to certain approvals by the government and other
specific closing conditions.
We believe that the acquisition of the investment management
operations unit of Capital Trust will bolster Blackstone's asset
management and servicing potential and will also enhance its
commercial real estate debt platform. Recently, Blackstone has
announced a string of acquisitions, which reflects its strong
liquidity. These acquisitions have the capacity to fuel
Blackstone's overall growth in the future.
The shares of Blackstone currently retain a Zacks #3 Rank, which
translates into a short-term Hold rating.