Industry News

GM nets $9 billion from GMAC deal

Sells majority stake in commercial real estate loan division

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General Motors completed the sale of a majority stake in the commercial mortgage division of its GMAC finance unit Thursday, receiving $9 billion in cash from the transaction, the company said. The purchase is being made by a group including private equity firms Kohlberg Kravis Roberts & Co. and Five Mile Capital Partners, as well the Goldman Sachs Capital Partner unit of Goldman Sachs, and is renaming the unit Capmark Financial Group Inc., the company said. "An investor group...has completed the acquisition of a majority interest in GMAC Commercial Holding Corp. (GMACCH) from General Motors Acceptance Corporation (GMAC)," the company said. GMAC, the wholly owned financial services subsidiary of General Motors Corp., sold 78 percent of its equity in GMACCH, up from the previously announced 60 percent target, in exchange for more than $1.5 billion in cash. At the closing, GMACCH also repaid to GMAC approximately $7.3 billion of inter-company loans, bringing GMAC's total cash proceeds ...