GMAC Commercial Deal Remains in Negotiations
The sale of GMAC Commercial was expected to close by the end of 2005 but New Year's came and went and the deal was still pending.
Industry officials familiar with the sale of the nation's largest commercial mortgage banker say the parties are still working on hammering out the final details.
"The paperwork on the deal is humongous," one investment banker told Mortgage Servicing News.
However, there is some speculation that investors Kohlberg Kravis Roberts, Five Mile Capital Partners and Goldman Sachs (acting as one) might be trying to take advantage of the dire financial straights of General Motors with an eye toward paying less.
A spokeswoman for GM said the sale of GMAC Commercial is moving forward but could not offer any specifics on when a sale might close.
The buyers are not commenting on the transaction. About a year ago, GM granted exclusive negotiating rights to the group in regard to them purchasing a majority stake in GMAC Commercial, which is based in Horsham, Pa.
In other merger news, final bids have been taken on Centex Home Equity, Dallas, which ranks 22nd among subprime servicers.
Goldman Sachs is selling the lender/servicer on behalf of homebuilder Centex Corp. A winner could be announced in February.
In late December, New Century Financial Corp., Irvine, Calif., purchased warehouse lender Access Lending Corp., Sugar Land, Texas, for about $10 million. (New Century ranks 10th among subprime servicers.)
Access specializes in providing warehouse lines to mortgage bankers and brokers producing $5 million to $100 million a month in loans. Milestone Merchant Partners, Miami, represented Access Lending.
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