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New ownership is good for GMAC Real Estate, say affiliates

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The planned sale of a majority stake in General Motors' GMAC subsidiary to a group of investors should strengthen the company's real estate operations, said real estate brokers and managers affiliated with the subsidiary. Cerberus Capital Management LP, a private investment firm named for a mythological three-headed dog that guards the entrance to Hades, is leading the investment group, which also includes Citigroup Inc. and Aozora Bank Ltd. The planned sale is subject to regulatory approvals and is expected to be finalized in fourth-quarter 2006. GM expects to receive about $14 billion in cash over three years in the deal, which will give the investment group a controlling interest of 51 percent in General Motors Acceptance Corp. and GM will retain a 49 percent ownership stake, according to a company announcement today. Under the new ownership plan, GM has the option to buy back a controlling interest in GMAC within 10 years. GMAC engages in automotive financing, commercial finance, ...