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Last Updated: Thursday, 23 March 2006, 15:43 GMT
GM sells property finance group
General Motors vehicle
GM is trying to turnaround its fortunes
US car giant General Motors (GM) says an investor group has bought a majority stake in property firm GMAC Commercial Holding, from GM's financing arm GMAC.

GMAC sold 78% of its equity in GMAC Commercial Holding in exchange for more than $1.5bn (0.86bn) in cash, GM said.

And GMAC Commercial will repay its GMAC parent about $7.3bn, bringing total proceeds from the deal close to $9bn.

The buyers are led by Kohlberg Kravis Roberts, Five Mile Capital Partners and Goldman Sachs Capital Partners.

GMAC Commercial Holding will change its name to Capmark Financial Group, with the name change to be fully implemented in the second quarter of this year, GM said.

GM has been seeking funds to aid its continuing turnaround efforts.

The carmaker, undergoing a painful restructuring, had previously hoped to sell a 60% stake in the property financing unit.

Last year, GMAC earned $2.8bn, compared to GM's overall loss of $8.6bn.

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