GMAC to sell off part of commercial mortgage unit

GMAC has recently announced that it will sell 60 percent of its GMAC Commercial Holding Corporation to an investor group. The investor group will be made up of Kohlberg Kravis Roberts & Co. (KKR), Five Mile Capital Partners, and Goldman Sachs Capital Partners. GMAC will retain a 40 percent interest in GMACCH, which is a leading commercial mortgage company. The sale is tied to a desire to have GMACCH obtain a separate credit rating to help it acquire funds to expand the operation. The sale will also inject funds into GMAC, and any inter-company loans will be repaid once the sale is complete. GMAC is obviously hurting because of GM's credit situation, making this move necessary for continued growth in a highly desirable segment.