Gramercy Capital Completes Manager Internalization

cy Capital Corp., a self-managed integrated commercial real estate finance and property investment company, has completed of the internalization of Gramercy's management. The internalization was completed through the direct acquisition by Gramercy of its external manager, GKK Manager LLC, which was previously a wholly owned subsidiary of SL Green Realty Corp. The consideration paid to SL Green in the transaction was de minimis. The internalization, which was approved unanimously by an independent special committee of the board of directors of Gramercy, eliminates the management fees payable by Gramercy to its external manager, adds 77 employees to the Gramercy family and serves to fully align the strategic and economic interests of Gramercy's senior management, employees, shareholders and other stakeholders, the company says. A short-term transition agreement will remain in place between Gramercy and SL Green to permit the completion of the separation of certain computer and information systems. The consulting agreements with specific SL Green employees have been terminated with the internalization, and it is the intention of Marc Holliday and Stephen Green to exit from the board of directors of Gramercy in the near future. SOURCE: Gramercy

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