GM Is Selling Majority Interest in Part of Finance Division to Investment Group

, AP Auto Writer

DETROIT March 23, 2006; Dee-Ann Durbin writing for the AP reported that General Motors Corp. said Thursday that it is selling a majority interest in its commercial mortgage division for $1.5 billion in cash to a private investment group.

In addition to the cash payment for a 78 percent stake in the business, GM said that GMAC Commercial Holding Corp. has also repaid $7.3 billion in intercompany loans as part of the deal. That would boost the total proceeds from the deal to almost $9 billion.

The buyers are a group that includes Kohlberg Kravis Roberts & Co., Five Mile Capital Partners and Goldman Sachs Capital Partners.

GM said the deal is separate from GM's announced plans to sell a controlling interest in the its overall finance business, General Motors Acceptance Corp.