Gramercy launches securities group.

Gramercy Capital Corp. announced that it has established a new real estate securities business that will focus on the acquisition, trading and financing of CMBS and other real estate related securities.

Gramercy also announced that Joseph Romano has joined GKK Manager, LLC, Gramercy's external advisor, as Senior Vice President to head the newly-formed group. He will report directly to Hugh F. Hall, the Company's Chief Operating Officer. Mr. Romano was formerly a Managing Director and CMBS Portfolio Manager at TIAA-CREF in New York where he was responsible for a $23 billion CMBS and REIT debt portfolio.

Initially, Gramercy will be targeting between $500 million and $1.0 billion of investments that will include CMBS, REIT debt, credit default swaps, preferred securities and other real estate securities. The new business line will complement Gramercy's core lending platform by extending the duration of the Company's assets, and enabling it to obtain term financing for fixed-rate loans originated by Gramercy.

"Having built a very successful direct commercial real estate lending franchise, we believe this is the right time in the Company's evolution to launch its real estate debt securities platform," stated Marc Holliday, Gramercy Capital Corp.'s CEO. "Gramercy will now begin to transact within the vast market for real estate debt securities, providing a new source of earnings and enhancing the Company's lending and trading businesses. This will become a strategically important business line for Gramercy's continued growth and industry-leading performance."

Hugh Hall commented, "We are excited to have attracted a top-quality veteran professional to launch and oversee this new initiative. Joe Romano is widely regarded as one of the leading portfolio managers of real estate securities.

"In addition to building the foundation for our funds management business, Joe's depth of experience after 10 years at TIAA-CREF will enhance Gramercy's coverage and presence in the secondary market, strengthen our fixed-rate mortgage origination and trading effort, and establish an investment platform that we expect will provide steady returns for our shareholders."