Pieces of GMAC real estate arm have been sold

by THE WAV GROUP on September 24, 2008

Although no information is being reported on Pacific Union, Koneng and Strey and other company owned offices – much of the empire has been sold.

NEW YORK (Associated Press) – A unit of Brookfield Asset Management Inc. said Tuesday it is buying the real estate arm of GMAC Financial Services for undisclosed terms.

The Toronto-based asset manager’s Brookfield Residential Property Services will buy GMAC Home Services LLC from GMAC Residential Holding Company LLC and Residential Capital LLC.

The deal includes GMAC Real Estate, which has about 80 company-owned real estate offices and about 1,000 franchised offices nationwide, and GMAC Home Services Mortgage, the mortgage origination service within some of those offices, said GMAC Financial Services spokeswoman Gina Proia. In addition, the sale includes GMAC Global Relocation Services.

In early September, GMAC Financial Services said it was exploring “strategic alternatives,” often used to hint at a business sale, for the Home Services unit as part of a restructuring of its mortgage business, which was hit hard by the housing market downturn.

Residential Capital LLC, or ResCap, GMAC’s Richfield, Minn.-based mortgage lending division, will continue to lend through brands such as Ditech and GMAC Mortgage Direct, Proia said.

The purchase expands Brookfield’s Residential Property Services into the U.S. market, said Chairman George Myhal. In Canada, Brookfield operates under the Royal LePage, La Capitale, Johnston & Daniel and Centract brand names.

New York-based GMAC is controlled by Cerberus Capital Management, but automaker General Motors Corp. still holds a 49 percent stake in the business.

Brookfield Asset Management shares gained 7 cents to $27.07 in midday trading

 

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