DETROIT - General Motors said on Wednesday that it was considering selling the commercial mortgage business of its General Motors Acceptance Corp. finance unit.
"GMAC is considering the possibility of selling all or substantially all of its interests in the commercial mortgage business," GM spokeswoman Toni Simonetti told Reuters.
Contrary to an unsourced report on a real estate Web site earlier on Wednesday, Simonetti said GM had no intention of selling all or any other parts of GMAC, including its residential mortgage business.
"GM is not considering a sale of GMAC. And GMAC is not considering a sale of other of its businesses," Simonetti said.
She also denied that the possible sale of the commercial mortgage unit was related to GM's underfunded pension liabilities, as reported on the Commercial Real Estate Direct Web site.
"That's ridiculous," said Simonetti, who spoke in a phone interview from the Geneva international auto show.
"There are strategic long-term reasons related to the business needs of commercial mortgage," she added. "It's not related to our well-documented pension situation."
GMAC's commercial mortgage unit had net income of $225 million last year, generated $20 billion in loans and had total assets of $12 billion, according to Simonetti.
She declined to say how big a price tag GM might place on the unit but added that talks to sell it were still in the early stages.
"It's too early to know," Simonetti said, when asked about possible buyers of the commercial mortgage unit.