SANTA ANA, CA (May 31, 2011) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today issued the following update regarding the strategic process currently being conducted.
As previously disclosed, the Board of Directors of Grubb & Ellis initiated a process in the first quarter of 2011 to explore strategic alternatives for the company, with the goals of maximizing value for all stakeholders and strengthening the company’s competitive position.
This process included hiring JMP Securities to explore the potential sale or merger of the company and engaging FBR Securities to market for sale the company’s wholly owned but separately managed subsidiary, Daymark Realty Advisors.
The company received initial indications of interest from numerous strategic and financial buyers after hiring JMP Securities on March 21, and on March 30 it announced the signing of a loan agreement with Colony Capital LLC, which included a 60-day exclusivity period for Colony to explore a larger strategic transaction.
As of May 29, Colony’s exclusivity period ended, which allows Grubb & Ellis to actively engage in discussions with additional parties, while continuing discussions with Colony.
In addition, the company has made significant progress in the Daymark process and expects to complete a transaction with respect to Daymark. Daymark is a full service property and asset management company and is responsible for the management of the company’s tenant-in-common portfolio, which consists of 30 million square feet of commercial real estate, including 8,700 apartment units and nearly 5,000 investors.
“We have already made significant progress with both initiatives and now that we have expanded the pool of potential strategic partners the Board and management are intent on bringing the strategic process to conclusion in a manner that creates value for all of our stakeholders,” said Thomas P. D’Arcy (top right photo), president and chief executive officer of Grubb & Ellis.
“The market reaction to our core real estate services and non-traded REIT business – with its broad platform, talented professionals and deep client and investor base – has been very strong. At the same time, Daymark has attracted strong interest from a range of potential buyers.”
There can be no assurances that the company will reach an agreement for the sale of Daymark or successfully conclude negotiations with a strategic investor. The company will continue to provide updates on both initiatives as appropriate
Contact: Janice McDill, Phone: 312.698.6707
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