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Transaction/Case Details

GE Capital sells Real Estate Portfolio to Blackstone and Wells Fargo

DATE CLOSED

June 1, 2015

BUSINESS SECTOR

Real Property / Construction

LEAD OFFICE

Toronto

VALUE

26 Billion USD


OVERVIEW

In June of 2015, GE Capital Corporation completed the sale of the Canadian component of its global real estate equity assets and commercial real estate loans to subsidiaries of The Blackstone Group and Wells Fargo Bank, N.A. for the approximate value of US$26 billion.

Blackstone units will acquire GE’s U.S. holdings, mainly office buildings in Southern California, Seattle and Chicago, for US$3.3 billion, along with a US$4.6 billion portfolio of commercial mortgages. The firm also agreed to buy European assets including office, industrial and retail properties, for €1.9 billion (US$2 billion) and commercial mortgages in Mexico and Australia for US$4.2 billion. Wells Fargo will buy performing mortgages on commercial real estate valued at US$9 billion in the U.S., U.K. and Canada.

Wells Fargo & Company is a nationwide, diversified, community-based financial services company with US$1.7 trillion in assets and Blackstone is a premier global investment and advisory firm.

General Electric Capital Corporation was represented in Canada by McCarthy Tétrault LLP with a team consisting of Barry Ryan (financial services), Tzen-Yi Goh, Jamie Orzech, Charlene Schafer, Pauline Reichel, Annie Gagnon-Larocque (real estate), Oliver Borgers (competition), David Woollcombe (corporate), Sunil Kapur (labour and employment), Joanna Rosengarten (environmental) and Gabrielle Richards (tax).

Contact


 
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Related Area of Expertise


Private Equity
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Real Estate
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