Gramercy Capital Corp. (NYSE: GKK)
today announced that its Board of Directors has, following an extensive review of strategic alternatives, approved a new investment strategy for the Company and has appointed Gordon F. DuGan as the Company's new Chief Executive Officer.
The Board of Directors launched its strategic review in response to the changes in market conditions that have affected the Company and its peers. While conducting the review, at the Board’s direction, the Company implemented a series of initiatives for the purpose of preserving capital, enhancing liquidity and reducing or eliminating contingent liabilities. These initiatives, notably including the resolutions of the Goldman Mortgage and Mezzanine Loans and the negotiation of a long-term Asset Management Services Agreement with KBS Acquisition Sub, LLC, a wholly owned subsidiary of KBS Real Estate Investment Trust, Inc., have been successfully completed. In the course of the review, the Board of Directors explored a wide variety of strategic alternatives, including extensive discussions with parties with respect to a variety of potential strategic transactions.
NEW BUSINESS STRATEGY
Following its review, the Board concluded that the most appropriate alternative available to the Company is to remain independent and to focus on building value by deploying the Company's capital into income-producing net leased real estate. The new investment criteria will focus on single tenant net lease investments with durable credits across a wide variety of industries in markets with strong demographics. The investments initially will be funded from existing financial resources. Subsequently, subject to market conditions, the Company expects to seek to raise additional debt and/or equity capital to support further growth.
NEW MANAGEMENT TEAM
Gordon F. DuGan will become the Company's Chief Executive Officer and a member of the Company's Board of Directors on July 1, 2012.