GM Considers Selling Headquarters To Raise Cash

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.

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t_bone - 10/7/2008 1:57:18 PM

+1 Boost

Nice idea...but who will have the money to buy it? The Chinese?

sector - 10/7/2008 2:01:56 PM

-3 Boost

no, their philosophy is "why buy the rights to if you can just copy it"

toolatetorace - 10/7/2008 9:49:04 PM

+1 Boost

auto 001 , you are absolutley right . They have been doing exactly that in this country. If it's made out out metal , plastic or fabric, they can copy it . I just wish they can copy Saudi Arabia's oil producing capabilities and sen the finished product over here

BigShow50 - 10/7/2008 2:25:57 PM

+4 Boost

GM should just turn this building into a condo...

0to60 - 10/7/2008 3:12:44 PM

+5 Boost

Who would buy in that market?

sigmabody - 10/7/2008 6:19:35 PM

+1 Boost

If any pension fund invests in the corporate cesspool that is GM, they should be required by law to agree to not getting any federal bailout when their investment is worthless, and have the investment (with statement addendum) approved by at least 3/4 of their members. The idea that some pension management board might dump half a billion dollars into an ultra-risky business venture and then demand a bailout when it fails sickens me.

neutral - 10/8/2008 4:22:37 PM

+1 Boost

Im no financial person,

But from this article Im assuming that GM has some sort of financing on this building. For them to want to get re-financed, wouldn't they just be hunting for a better loan deal?

Seems like everyone has already jumped on the "GM is selling the RenCen boat" just from someone saying it a possibility.

Kind of like "we leave all options on the table with regards to Iran" meaning "we're going to war with Iran"

On a completely random note, in the five years since good 'ol GW Bush invaded Iraq, America has spent something like a trillion dollars on this war. Now just think, if America bought Cadillacs, Lincolns, Chryslers, etc and gave those to every Iraqi citizen, we'd probably be much better off. Our auto industry would have enough profits to keep investing in new tech, Iraqis would love America (hell I would be thrilled if a B52 bomber came overhead and parachuted an Escalade), and Iraqis would get hooked to US cars, thus creating a constant revenue stream.....

Just wishful thinking.... sorry about the rant.