GMAC Commercial Mortgage Business
GMAC to Retain Commercial Mortgage Business
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.
SOURCE General Motors Corporation
-0- 12/03/2003 P
/NOTE TO EDITORS: For additional media information, visit
http://media.gm.com ./
/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 /
(GM)
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