This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Capital Trust Closes On Sale Of Investment Management Platform To Blackstone

NEW YORK, Dec. 19, 2012 /PRNewswire/ -- Capital Trust, Inc. (NYSE: CT) (" Capital Trust ") today announced that an affiliate of Blackstone (NYSE: BX) completed the previously announced acquisition of Capital Trust's investment management business, operated through its subsidiary, CT Investment Management Co., LLC (" CTIMCO "). The closing followed approval today by the shareholders of Capital Trust of the transaction and all related proposals.

At the closing, affiliates of Blackstone acquired CTIMCO and related fund co-investments for $21.4 million.  In addition, an affiliate of Blackstone purchased five million newly issued shares of Capital Trust's class A common stock for $10 million ( $2.00 per share), representing 17% of Capital Trust's outstanding common stock. 

Capital Trust will pay the previously announced $2.00 per share special cash dividend on December 20, 2012.  Pursuant to the New York Stock Exchange's "due bills" trading procedure, holders of Capital Trust class A common shares (other than those newly issued to Blackstone) at the close of business on the December 20, 2012 will receive the dividend payment, and the common stock will begin to trade ex-dividend on December 21, 2012.

In conjunction with the transaction, John G. Schreiber, a co-founder of Blackstone Real Estate Advisors, and Michael B. Nash, chief investment officer of Blackstone Real Estate Debt Strategies, have been appointed to Capital Trust's board of directors as Blackstone designees.  Mr. Schreiber will serve as chairman of the board.  Samuel Zell, who served as chairman of the board since the Company's founding in 1997, and Edward Hyman, a director since 2005, have resigned from Capital Trust's board of directors.

Capital Trust is now externally managed by BREDS / CT Advisor L.L.C. (the " New CT Manager "), an affiliate of Blackstone.  CTIMCO and its personnel are being integrated into Blackstone's Real Estate Debt Strategies business, an affiliate of the New CT Manager.  Stephen D. Plavin, Geoffrey G. Jervis and Thomas C. Ruffing will continue to serve as Capital Trust's chief executive officer, chief financial officer and chief credit officer, respectively while also becoming employees of an affiliate of Blackstone.

After the sale of CTIMCO and the related transactions, Capital Trust's assets include cash, its interests in CT Legacy REIT Mezz Borrower, Inc., the incentive management fee interests in CT Opportunity Partners I, L.P., as well as its retained subordinate interests in three Capital Trust sponsored CDOs.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,131.35 -72.02 -0.40%
S&P 500 2,099.15 -8.63 -0.41%
NASDAQ 4,969.1110 -10.79 -0.22%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs