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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...
 

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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/article?AID=/20081007/AUTO01/810070376
 

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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.
 

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Re: GM Could Sell Detroit Headquarters.

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.
 

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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.
 

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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.
 

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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?
 

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

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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
 

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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.
 

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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.
How about moving the HQ south of Detroit at Windsor ONT? And which others suburbs around Detroit besides Dearborn(Ford) and Auburn Hills(Chrysler) are safer?
 

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How about moving the HQ south of Detroit at Windsor ONT? And which others suburbs around Detroit besides Dearborn(Ford) and Auburn Hills(Chrysler) are safer?
what will it take to displace Red Ink Rick?
 

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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?
Besides politicians the only non government career person I know of that can be wrong half the time and keep their job is the weather person or Ricky.
 

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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
They're not selling the Ren Cen for 500m. They want to refinance their loan - probably to get the monthly payments down - or they are thinking of selling it. Read the article before you line up behind Buick Blowhard to bash GM.



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.
You're right, if GM would just stop charging customers a destination fee (even thought every other company in the world does) GM would be rolling in cash. Oh, and I forgot your other gem - make better cars. Thanks for helping with the details Blowhard.



btw along those lines, more incentives starting Saturday, they just don't get it, or do they?
Again, way to have your finger on the pulse of the economy. You want them to be the only company out there not doing incentives???
 
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