Gramercy Property Trust Raises $47.4M in Equity Private Placement, Identifies $130M Investment Pipeline, Plans to Reinstate Preferred Dividend

Gramercy Property Trust Inc.

, a real estate investment trust, today announced that along with its $47.4 million equity raise that it has an identified $130 million investment pipeline. Additionally, the Company intends to resume timely payments of dividends on the Company's Series A cumulative redeemable preferred stock, beginning with the dividend due for the fourth quarter of 2013. Additional details on the Company's investment pipeline will be available in the investor presentation that will be posted prior to the call on the Company's website, www.gptreit.com. In connection therewith, the Company intends to satisfy and pay all accrued but unpaid preferred stock dividends for prior periods. The Company also announced its intention to initiate payment of common stock dividends during 2014. The record and payment dates for all Company dividend payments will be made as and when the same are determined by the Company's board of directors. As previously announced, on October 4, 2013, the Company executed definitive agreements for a private placement of 11,535,200 shares of common equity (the “Private Placement”) at a price of $4.11 per share, raising gross proceeds of $47.4 million. Investors in the Private Placement received one Contingent Value Right (“CVR”) per common share, entitling the CVR holder to a limited downside protection in the form of a one-time cash payment (not to exceed $0.46 per share) in the event the Company's volume weighted average share price for the ten trading day period ending March 25, 2014 (“Lock-Up End Date”) is less than $4.11 per share. The Private Placement investors have agreed not to sell the common shares that they receive in the Private Placement or the related CVRs prior to the Lock-Up End Date. The Company anticipates closing the Private Placement later today. The Company's financial advisor and placement agent for the Private Placement was Morgan Stanley & Co. LLC. The Company's counsel for the Private Placement was Morgan, Lewis & Bockius LLP. The Company intends to use the net proceeds from the Private Placement for the acquisition of its investment pipeline, payoff of preferred accrual and general corporate purposes.