GMAC Commercial Mortgages’ position in the UK property lending market could be strengthened by its sale to Deutsche Bank.
The German bank is set to pay around $1bn for GMAC CM, the property finance arm of General Motors, which began lending in the UK last year. GMAC CM has a global property loan book of $134bn and has lent around £500m in the UK.
GMAC would not comment on the deal, but a letter to its employees said it was in exclusive negotiations with an unnamed party and hoped to complete the deal in November.
General Motors said it believed the sale could help the business to grow by giving it more freedom to raise capital.
Deutsche was linked with GMAC CM in a £500m UK securitisation earlier this year, but it is now on hold.
