GMAC to Retain Commercial Mortgage Business
02 Dezember 2003 - 10:36PM
PR Newswire (US)
GMAC to Retain Commercial Mortgage Business DETROIT, Dec. 2
/PRNewswire/ -- General Motors Acceptance Corporation (GMAC) today
said it has decided to retain ownership of its commercial mortgage
business. The decision comes at the completion of GMAC's evaluation
of funding alternatives, which included the possible sale of all or
a portion of the commercial mortgage business (which is conducted
through a wholly-owned subsidiary named GMAC Commercial Holding
Corp.). Earlier this year, GMAC indicated it was pursuing a
possible sale of the commercial mortgage business as a means of
continued access to capital for the growing concern. Since then,
GMAC Commercial Holding Corp. has continued to post record
operating results, with origination volume and earnings during the
first nine months of 2003 already at or above the levels achieved
during the full year of 2002. In addition, the overall capital
markets environment has improved considerably from the difficult
environment in 2002 and early 2003. "Since our evaluation of a
possible sale began, the commercial mortgage business has continued
to perform extremely well," said GMAC Chairman and President Eric
A. Feldstein. "In addition, through our recent discussions with
major industry participants we now believe that alternative
large-scale funding mechanisms should be available without
requiring a sale of the business. As a result, we will seek to
establish alternative funding mechanisms to provide for the ongoing
capital requirements of the commercial mortgage business while
providing liquidity relief to GMAC." GMAC Commercial Holding Corp.
has more than 100 offices in nine countries and is the leading
servicer of commercial mortgages in the United States, with a
servicing portfolio of nearly $250 billion at September 30, 2003.
For the nine months ended September 30, 2003, GMAC Commercial
Holding Corp. had origination volume of nearly $20 billion and
earned net income of approximately $243 million. Total assets of
GMAC Commercial Holding Corp. at September 30, 2003 was
approximately $14.6 billion. In this press release and related
comments by General Motors and GMAC management, our use of the
words "expect," "anticipate," "estimate," "forecast," "objective,"
"plan," "goal," "target," and similar expressions is intended to
identify forward looking statements. While these statements
represent our current judgment on what the future may hold, and we
believe these judgments are reasonable, actual results may differ
materially due to numerous important factors that are described in
GM's and GMAC's most recent report on SEC Form 10-K which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K. Such factors include, among others, the following: changes in
economic conditions, currency exchange rates or political
stability; shortages of fuel, labor strikes or work stoppages;
market acceptance of the corporation's new products; significant
changes in the competitive environment; changes in laws,
regulations and tax rates; and, the ability of the corporation to
achieve reductions in cost and employment levels to realize
production efficiencies and implement capital expenditures at
levels and times planned by management. DATASOURCE: General Motors
Corporation CONTACT: James Farmer of General Motors Acceptance
Corporation, +1-248-263-3049; or Toni Simonetti of General Motors
Corporation, +1-212-418-6380 Web site: http://media.gm.com/
http://www.gm.com/
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