Gramercy Capital Corp., once one of the premier commercial real estate
finance and investment companies in the business, is replacing its CEO and president and embarking on a new strategy of investing in net leased properties.
Following an extensive review of strategic alternatives, the company has approved a new investment strategy and appointed Gordon F. DuGan as its new chief executive officer. DuGan will become the company's CEO July 1. He has more than 20 years of senior management experience in the real estate industry. For five years, he was CEO of W.P. Carey & Co., a global investment firm with $12.5 billion of assets under management, and considered to be one of the leading providers of net lease financing for corporate properties.
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In doing so, the company plans to remain independent and focus on building value by deploying capital into income-producing net leased real estate. The new investment criteria will focus on single tenant net lease investments with durable credits across a wide variety of industries in markets with strong demographics.
The investments initially will be funded from existing financial resources. Subsequently, subject to market conditions, the company expects to seek to raise additional debt and/or equity capital to support further growth.
During his first 60 days, in addition to beginning the implementation of the company's new investment strategy, DuGan will lead an operational review of the company's existing assets and operations with the goal of reducing the current cost structure, further strengthening the balance sheet and determining which legacy assets and operations complement the new investment strategy.
"Gramercy is well positioned to capitalize on opportunities now emerging in the marketplace. With the addition of broader net lease expertise being brought on, we plan to diversify and further strengthen the investment platform already established," DuGan said.
Joining DuGan are W.P. Carey alum Benjamin P. Harris as president and Nicholas L. Pell as managing director. Harris was the head of U.S. investments for W.P. Carey; Pell was a director in the investment department.
In accordance with the end of their employment contracts, Roger M. Cozzi will be stepping down as CEO and Timothy J. O'Connor will be stepping down as president.
Gramercy Capital is based in New York City and has regional investment and portfolio management offices in Jenkintown, PA; Charlotte, NC; and St. Louis, MO.
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