Gramercy Capital Purchases 115 Office Buildings for $470M + $15M in Stock from KBS Real Estate

Gramercy Capital Corp.

today announced that it has formed a joint venture with an affiliate of Garrison Investment Group (“Garrison”) and executed a definitive agreement to acquire 100% of the membership interests in entities owning 115 office buildings from an affiliate of KBS Real Estate Investment Trust, Inc. (“KBS”). The purchase price for the portfolio is $470 million in cash plus the issuance to KBS at closing of 6 million shares of the Company's common stock, valued at $15.0 million. Buyer's obligations under the purchase agreement are subject to the satisfaction of certain conditions, including obtaining mortgage financing on terms satisfactory to buyer. The acquisition is expected to close in the fourth quarter of 2012; however, there can be no assurances that the acquisition will close on the terms described herein or at all. Each partner owns a 50% membership interest in the joint venture.