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8-K - Gramercy Property Trust Inc. | v204656_8k.htm |
Exhibit
99.1
FOR
IMMEDIATE RELEASE
For
SL Green Realty Corp.:
Heidi
Gillette
Director,
Investor Relations
(212)
216-1654
For
Gramercy Capital Corp.:
Jon
Clark
Chief
Financial Officer
(212)
297-1000
SL
Green Announces an Agreement to Acquire New York City Office
and
Retail Real Estate Investments from Gramercy Capital Corp.
New York,
NY – December 6, 2010 – SL Green Realty Corp. (NYSE: SLG) and Gramercy Capital
Corp. (NYSE: GKK) today announced an agreement for SL Green to purchase
investments from Gramercy Capital Corp. for an aggregate price of $390.8
million, including the assumption of $265.6 million in debt. The transactions,
which are expected to close within the next 90 days, are subject to the
satisfaction of certain conditions.
The
transactions include acquisitions by SL Green of the following:
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·
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A
45 percent joint venture interest in the leased fee of 885 Third Avenue,
New York, NY, also known as the Lipstick Building, for approximately $39.3
million, including pro rations, plus assumed mortgage debt of $120.4
million. The transaction consolidates SL Green’s position and
will bring the company’s ownership to 100 percent in the joint venture
that owns fee and leasehold interests in the property. Based upon the
purchase price, the implied total value of SL Green’s interest is $352.0
million.
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·
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A
45 percent joint venture interest in the leased fee of 2 Herald Square,
New York, NY for approximately $25.6 million, including pro rations, plus
assumed mortgage debt of $86.1 million. The transaction
consolidates SL Green’s position and will bring the company’s ownership to
100 percent in the leased fee. Based upon the purchase price, the implied
total value is $247.5 million.
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2
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·
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The
entire leased fee interest in 292 Madison Avenue, New York, NY for
approximately $19.2 million, including pro rations, plus assumed mortgage
debt of $59.1 million.
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All of the above assets are
leased to third party operators.
The
companies also announced:
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A
$38.7 million mezzanine loan secured by equity interests in 601 West
26th
Street, New York, NY, also known as the Starrett-Lehigh Building,
supplementing an existing SL Green investment in the
property.
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Andrew
Mathias, President of SL Green, said, “These transactions conclude an important
consolidation in our ownership of land and improvements representing 1.2 million
square feet of prime Midtown properties, all with long–term operating leases to
third parties. As the Manhattan market continues its improvement, the
depth of our capabilities and reach of our investment platform are an
increasingly valuable component of our corporate strategy, which creatively
invests with what we believe is unparalleled market knowledge, and with a
disciplined risk adjusted return approach.”
Roger M.
Cozzi, Chief Executive Officer of Gramercy, said, “These transactions enable us
to monetize several non-controlling co-investment positions, produce a
substantial increase in our corporate liquidity, and further deleverage
Gramercy’s balance sheet. The transactions are expected to increase
our unrestricted corporate liquidity by approximately $89.9 million, and create
added restricted liquidity for one of our CDOs. We’re pleased to
reach agreement on transaction terms that help Gramercy achieve its short and
long-term objectives.”
3
About
SL Green Realty Corp.
SL Green
Realty Corp. is a self-administered and self-managed real estate investment
trust, or REIT, that predominantly acquires, owns, repositions and manages
Manhattan office properties. SL Green is the only publicly held REIT that
specializes in this niche. As of September 30, 2010, SL Green owned interests in
30 New York City office properties totaling approximately 22,324,460 square
feet, making it New York's largest office landlord. In addition, at September
30, 2010, SL Green held investment interests in, among other things, eight
retail properties encompassing approximately 366,312 square feet, three
development properties encompassing approximately 399,800 square feet and two
land interests, along with ownership interests in 31 suburban assets totaling
6,804,700 square feet in Brooklyn, Queens, Long Island, Westchester County,
Connecticut and New Jersey.
About
Gramercy Capital Corp.
Gramercy
Capital Corp. is a self-managed integrated commercial real estate finance and
property investment company whose Gramercy Finance division focuses on the
direct origination, acquisition and portfolio management of whole loans,
subordinate interests in whole loans, mezzanine loans, preferred equity,
commercial mortgage-backed securities and other real estate securities, and
whose Gramercy Realty division targets commercial properties leased primarily to
financial institutions and affiliated users throughout the United States.
Gramercy is headquartered in New York City, and has regional investment and
portfolio management offices in Jenkintown, Pennsylvania, Charlotte, North
Carolina and St. Louis, Missouri. To review Gramercy’s latest news
releases and other corporate documents, please visit Gramercy's website at
www.gkk.com or contact Investor Relations at 212-297-1000.
4
Forward-looking
Statement
This
press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements other than statements of historical facts
included in this press release are forward-looking statements. All
forward-looking statements speak only as of the date of this press release. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance, achievements or
transactions of Gramercy, SL Green and their affiliates, or industry results or
the benefits of the proposed transaction, to be materially different from any
future results, performance, achievements or transactions expressed or implied
by such forward-looking statements. Such risks, uncertainties and other factors
associated with forward-looking information in this press release relate to,
among others, the satisfaction of closing conditions to the transaction and the
effects of general and local economic conditions, interest rates, capital market
conditions, bankruptcies and defaults of borrowers or tenants in properties
securing the companies' investments, and other factors, which are beyond the
companies' control. Additional information or factors which could impact the
companies and the forward-looking statements contained herein are included in
each company's filings with the Securities and Exchange Commission. The
companies assume no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events.
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