Chambers Street Properties said it would merge with Gramercy Property Trust to create the largest U.S. industrial and office net lease real estate investment trust.
Gramercy shareholders will get 3.1898 shares of Chambers Street for each Gramercy share held. The offer of $25.36 per share, represents a premium of 8.5 percent to Gramercy's Tuesday close.
The deal is worth $1.45 billion, according to Reuters calculations, based on 57.3 million Gramercy shares outstanding as on May 5. The combined firm will have an enterprise value of about $5.7 billion.