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GM Sells Majority Interest in GMAC Mortgage Division

General Motors Corp. has announced that an investor group has completed the acquisition of a majority interest in GMAC Commercial Holding Corp. from GM's financing arm, General Motors Acceptance Corp. GM said the deal for the commercial mortgage unit stake is separate from GM's announced plans to sell a controlling interest in its overall finance business, General Motors Acceptance Corp.

GMAC sold 78 percent of its equity in GMAC Commercial Holding in exchange for more than $1.5 billion in cash. GMAC Commercial Holding, GM's real estate finance unit, will repay approximately $7.3 billion of intercompany loans to GMAC at the closing of the deal, bringing GMAC's total cash proceeds from the transaction to almost $9 billion. The investor group was comprised of affiliates of Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC and Goldman Sachs Capital Partners. GMAC Commercial Holding is changing its name to Capmark Financial Group Inc., with the name change to be fully implemented in the second quarter of this year.

Another spin off and another pile o' cash for GM. The newly minted Capmark will be freed from GM's dismal debt rating and should return to professional grade, oops I mean investment grade, ratings from the three primary rating agencies.