X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DETROIT-A day after final agreement was reached for the General Motors Acceptance Corp. to be repaid on an outstanding loan on the World Trade Center, the financial arm of the world’s largest automaker said it is no longer considering selling its commercial mortgage operation.

In March, General Motors said it was considering selling all or substantially all of its interests in GMAC Commercial Holdings, the commercial mortgage business of GMAC. The company cited what a spokesman said at that time was “difficult capital market environments.”

Reports later surfaced in October that Deutsche Bank AG had reached a tentative agreement to buy GMAC Commercial Holding for approximately $1 billion.

On Tuesday however, GMAC issued a statement that it was no longer interested in sellings its Commercial Holdings business.

On Monday, an agreement was reached that calls for the Port Authority of New York and New Jersey to spend $563 million to buy out GMAC Commercial Mortgage Corporation, which was Silverstein Properties’ lender in the company’s 2001 winning bid for control of the trade center.

GMAC did not mention the New York deal in its Tuesday statement and issued no further comment on Wednesday. Deutsche Bank also had no comment.

GMAC is a key part of General Motors’ portfolio, financing deals on the purchase and lease of vehicles sold by GM dealers and also operating a residential mortgage business, among other activities. It has been a consistent money maker for the automaker, even during times when the auto industry was soft.

GMAC said this year has been a record-breaking year for its commercial division, conducting more business in the first three quarters of 2003 than in all of 2002. The commercial mortgage unit had net income for the nine months ended Sept. 30 of approximately $243 million, generating nearly $20 billion in loans. It had total assets of $14.6 billion as of Sept. 30.

GM’s stock price climbed more than five percent Wednesday, up $2.26 on the New York Stock Exchange to close at $45.54, but that increase was attributed primarily to expectations about a pending GM announcement on the status of its pension liabilities and strong U.S. auto sales in November.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.