Gramercy Capital Corp., a New York-based commercial real estate financing affiliate of real estate investment trust SL Green Realty Trust, is acquiring the Jenkintown, Penn.-based American Financial Realty Trust, a Lewis Ranieri-backed company in the commercial real estate net lease space, for a total price of about $3.4 billion.Gramercy reports that the purchase price includes the assumption of AFRT's existing debt, as well as the payment per AFRT share of $5.50 in cash and 0.12096 shares of Gramercy common stock. The exchange ratio is not subject to change. The acquisition is expected to create an "integrated commercial real estate finance and operating company." After the acquisition closes, which is slated for the first quarter of 2008, Gramercy expects to own about 27 million square feet of commercial real estate in 37 states, adding to its existing portfolio of $3.5 billion in debt investments. Marc Holliday, CEO, Gramercy Capital, noted, "By combining Gramercy's financial resources and capital markets expertise with SL Green's recognized portfolio investment and asset management skills, we believe we can fully realize the vision behind the original creation of American Financial."

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