GM Could Sell Detroit Headquarters

coaster.n3rd · 10-07-2008, 09:04 AM

Quote:

GM could sell Detroit headquarters to raise cash, but plans to stay in towering complex

DETROIT (AP) -- A General Motors official says the automaker could consider selling its downtown Detroit headquarters as part of a way to raise cash, but plans to stay in the towering complex.

more at link...

61BelAir · 10-07-2008, 10:45 AM

Looks like the Saudis will be buying more real estate soon.

Buickman · 10-07-2008, 10:52 AM

Carmaker may sell building if it can't borrow $500M; Pitch to be made to Detroit pension funds

Robert Snell and Christine MacDonald / The Detroit News

General Motors Corp. wants to borrow about $500 million from one or both of Detroit's pension funds to refinance the Renaissance Center, the automaker's iconic world headquarters, in a move that could pump cash into the financially strapped company's coffers.

GM officials are scheduled to make a preliminary investment pitch Thursday to the city's Police & Fire Retirement System and are trying to schedule a meeting with the pension fund representing general city employees, The Detroit News has learned.

If a deal cannot be reached, GM will consider selling the landmark and leasing space within the RenCen, John Blanchard, GM's executive director of worldwide real estate, said Monday.

The moves come as the automaker is trying to raise about $5 billion through asset sales and borrowing to survive the worst auto sales market in 15 years. Already on the shopping block are the Hummer brand, GM's medium-duty truck business, vast amounts of real estate and shuttered manufacturing plants.

full text: http://www.detnews.com/apps/pbcs.dll...TO01/810070376

**ChevyRules** · 10-07-2008, 10:53 AM

Didn't they just buy it a few months back?

steinravnik · 10-07-2008, 10:53 AM

member12 · 10-07-2008, 11:03 AM

They just bought it.

Probably a horrible idea to sell it now...unless they got it for a steal. I'm not familiar with downtown Detroit's real estate market.

Why didn't they move into a cheaper suburban office like nearly every other company seems to be doing? Do most of their employees live in downtown Detroit (or within a few miles of it)? Isn't Ford's HQ in a smaller building in Detroit's suburbs?

Hell, the only reason Halliburton's offices in Houston are where they are is because most of their executives live btw dowtown and uptown. I know my company locates their regional offices in the outer rings of cities to save money and to be closer to where their employees are more likely to live.

Chaz_23 · 10-07-2008, 11:10 AM

always a good idea to refinance, in the real world. But in the world of fancy economics, that's probably a bad thing. So they think that renting rather than owning is better?

steinravnik · 10-07-2008, 11:14 AM

Quote:

Originally Posted by Chaz_23

always a good idea to refinance, in the real world. But in the world of fancy economics, that's probably a bad thing. So they think that renting rather than owning is better?

They're obviously desperate for cash and are scrambling. I don't think this is a good sign.

Buickman · 10-07-2008, 11:15 AM

Quote:

Originally Posted by ChevyRules

Didn't they just buy it a few months back?

THEY PAID $626 MILLION LAST MAY. this is another desparate act by a management that simply doesn't know how to sell cars and that problem will not go away as long as Red Ink Rick remains.

mpsrent · 10-07-2008, 11:36 AM

Taking into consideration the loss after all legal and transfer fees have been paid I must wonder why they would do it unless they are truly in a last ditch move of desperation.

Sad.

CaptainDan · 10-07-2008, 11:45 AM

Comprehensive reading 101.

A GM official said GM might consider sellling the RenCen (no value mentioned) to raise money.

The Detroit News reports that GM would like to refinance the Ren Cen, to borrow $500 million Dollars against it.

Two seperate items. Related, but not the same.

Buickman · 10-07-2008, 11:53 AM

key words in article...financially strapped and survive. remember, I've been saying it for years, Red Ink Rick is intentionally dismantling GM. no one is so stupid as to keep doing what they do and losing consistently. btw along those lines, more incentives starting Saturday, they just don't get it, or do they?

skylark68 · 10-07-2008, 12:25 PM

Sell it and buy one of Detroit's old languishing buildings for a song.

1931Chevy · 10-07-2008, 12:29 PM

Lets see GM bought RenCen back in 1996, it sold it some years later and leased it for the office they where using, buy the building back in 08 for 626 million and after GM investing some billions in it and now they are planning to only get 500million

Generous Motors · 10-07-2008, 12:30 PM

Nobody lives in Detroit for long.......

GM should sell it and get the hell outta Detroit to a safer suburb, the savings in security would get GM back in the black.

Ford is in Dearborn.

10-07-2008, 10:45 AM	#2 (permalink)
61BelAir 5.3 Liter Vortec V8 Join Date: Dec 2004 Location: California Drives: 07 Colorado and 61 BelAir Posts: 1,495	Re: GM Could Sell Detroit Headquarters. Looks like the Saudis will be buying more real estate soon.

10-07-2008, 10:52 AM	#3 (permalink)
Buickman Banned Join Date: May 2005 Location: Flint MI Drives: 08 Enclave Posts: 2,366	GM seeks deal for RenCen Carmaker may sell building if it can't borrow $500M; Pitch to be made to Detroit pension funds Robert Snell and Christine MacDonald / The Detroit News General Motors Corp. wants to borrow about $500 million from one or both of Detroit's pension funds to refinance the Renaissance Center, the automaker's iconic world headquarters, in a move that could pump cash into the financially strapped company's coffers. GM officials are scheduled to make a preliminary investment pitch Thursday to the city's Police & Fire Retirement System and are trying to schedule a meeting with the pension fund representing general city employees, The Detroit News has learned. If a deal cannot be reached, GM will consider selling the landmark and leasing space within the RenCen, John Blanchard, GM's executive director of worldwide real estate, said Monday. The moves come as the automaker is trying to raise about $5 billion through asset sales and borrowing to survive the worst auto sales market in 15 years. Already on the shopping block are the Hummer brand, GM's medium-duty truck business, vast amounts of real estate and shuttered manufacturing plants. full text: http://www.detnews.com/apps/pbcs.dll...TO01/810070376

10-07-2008, 10:53 AM	#4 (permalink)
ChevyRules GMI Staff Member Join Date: May 2005 Drives: 2007 BMW 335xi, 2007 Saturn Aura XR Posts: 3,623	Re: GM Could Sell Detroit Headquarters. Didn't they just buy it a few months back? __________________ Follow me on Twitter

10-07-2008, 10:53 AM	#5 (permalink)
steinravnik 4.4 Liter Supercharged Northstar Join Date: Mar 2003 Location: Washington, DC Drives: Trek 4500, DC Subway, 2008 Astra XR 2dr Posts: 2,544	Re: GM Could Sell Detroit Headquarters. Sad.

10-07-2008, 11:03 AM	#6 (permalink)
member12 6.2 Liter LS9 Supercharged V8 Join Date: Jun 2003 Location: Baton Rouge Drives: 2007 Silverado 4x4 Posts: 7,629	Re: GM Could Sell Detroit Headquarters They just bought it. Probably a horrible idea to sell it now...unless they got it for a steal. I'm not familiar with downtown Detroit's real estate market. Why didn't they move into a cheaper suburban office like nearly every other company seems to be doing? Do most of their employees live in downtown Detroit (or within a few miles of it)? Isn't Ford's HQ in a smaller building in Detroit's suburbs? Hell, the only reason Halliburton's offices in Houston are where they are is because most of their executives live btw dowtown and uptown. I know my company locates their regional offices in the outer rings of cities to save money and to be closer to where their employees are more likely to live. __________________ Get your geek on in 2012! Last edited by member12 : 10-07-2008 at 11:05 AM.

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10-07-2008, 11:10 AM	#7 (permalink)
Chaz_23 6.0 Liter L76 V8 Join Date: Jan 2007 Posts: 2,290	Re: GM Could Sell Detroit Headquarters always a good idea to refinance, in the real world. But in the world of fancy economics, that's probably a bad thing. So they think that renting rather than owning is better?

10-07-2008, 11:36 AM	#10 (permalink)
mpsrent 2.4 Liter SIDI ECOTEC Join Date: Apr 2003 Drives: '04 GMC Envoy Posts: 452	Re: GM Could Sell Detroit Headquarters Taking into consideration the loss after all legal and transfer fees have been paid I must wonder why they would do it unless they are truly in a last ditch move of desperation. Sad. __________________ GMC Envoy

10-07-2008, 11:45 AM	#11 (permalink)
CaptainDan 5.3 Liter Vortec V8 Join Date: Mar 2007 Location: Michigan Drives: '05 GTO Posts: 1,375	Re: GM Could Sell Detroit Headquarters Comprehensive reading 101. A GM official said GM might consider sellling the RenCen (no value mentioned) to raise money. The Detroit News reports that GM would like to refinance the Ren Cen, to borrow $500 million Dollars against it. Two seperate items. Related, but not the same. __________________ '05 GTO 6.0 Liter LS2 400 horsepower Anything less is just a hamster on a wheel.

10-07-2008, 11:53 AM	#12 (permalink)
Buickman Banned Join Date: May 2005 Location: Flint MI Drives: 08 Enclave Posts: 2,366	Re: GM Could Sell Detroit Headquarters key words in article...financially strapped and survive. remember, I've been saying it for years, Red Ink Rick is intentionally dismantling GM. no one is so stupid as to keep doing what they do and losing consistently. btw along those lines, more incentives starting Saturday, they just don't get it, or do they?

10-07-2008, 12:25 PM	#13 (permalink)
skylark68 4.6 Liter Northstar V8 Join Date: Sep 2006 Location: Pearland, TX Drives: 1989 GMC Suburban 1968 Buick Skylark 1972 Corvet Posts: 1,524	Re: GM Could Sell Detroit Headquarters Sell it and buy one of Detroit's old languishing buildings for a song. __________________ The Mechanic: You'd have yourself a real street-sweeper here if you put a little work into it. G.T.O.: I go fast enough. The Driver: You can never go fast enough.

10-07-2008, 12:30 PM	#15 (permalink)
Generous Motors 2.4 Liter SIDI ECOTEC Join Date: Nov 2005 Location: The Peoples Republic of California Drives: 1968 Malibu 1971 Monte Carlo 1974 C10 Posts: 297	Re: GM Could Sell Detroit Headquarters Nobody lives in Detroit for long....... GM should sell it and get the hell outta Detroit to a safer suburb, the savings in security would get GM back in the black. Ford is in Dearborn. __________________ The difference between genius and stupidity is that genius has limits.

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