SL Green Forms Specialty Finance Firm

SL Green Realty, a New York-based office real estate investment trust, has formed Gramercy Capital, a specialty finance company that will focus on originating and acquiring loans and other fixed-income investments secured by commercial real estate.Gramercy is filing a registration statement with the Securities and Exchange Commission for an initial public offering of common shares, SL Green reported. The offering is expected to raise up to $200 million, which will give Gramercy access to capital, "a public company platform", and the infrastructure to grow SL Green's structured finance business within New York City, as well as into other markets and property types. SL Green is not contributing its existing fixed-income investment portfolio in connection with the IPO, the REIT said, but it will invest up to $50 million in the IPO and own about 25% of Gramercy's post-IPO stock base. An SL Green subsidiary will manage Gramercy, which is also opting for REIT status, for a fee.