GMAC, which is majority-owned by Cerberus Capital Management, has agreed to sell its home services unit to a division of Brookfield Asset Management. No terms were disclosed for the deal, which is expected to close next quarter.
Brookfield Residential Property Services (“BRPS”), a division of Brookfield Asset Management Inc. (“Brookfield”), announced today that it has entered into an agreement to purchase GMAC Home Services LLC, a recognized leader in global relocation, real estate franchising and brokerage and home financing services, from GMAC Residential Holding Company LLC and Residential Capital LLC. The transaction is expected to close in the fourth quarter 2008.
“Brookfield is a leading provider of residential property services in Canada,” stated Chairman George Myhal. “Notwithstanding the recent market turmoil, this acquisition represents an important opportunity for us to expand in the U.S. market for residential property services and we believe we are well-positioned to grow our market share once this difficult period of adjustment is behind us.”
In Canada, Brookfield provides executive relocation services, home appraisals and property brokerage services under the Royal LePage, La Capitale, Johnston & Daniel and Centract brand names.
The GMAC Home Services’ business units that are part of this acquisition include: GMAC Global Relocation Services, GMAC Real Estate and GMAC Home Services Mortgage.
“This transaction will combine GMAC Home Services’ global operations with our businesses, to create a platform for long-term North American and international growth,” said Graham Badun, Managing Partner and CEO of BRPS. “GMAC Home Services offers its award winning services through locations in forty seven states, Europe and Asia. This acquisition is evidence of our belief in the long-term opportunities for growth in the U.S. residential property services market.”
Following the acquisition, BRPS will have one of the largest relocation companies in the world and its REALTOR(R: 61.80, -1.98, -3.10%) network will be almost 30,000 strong, based out of 1,500 locations across North America.
“The purchase of GMAC Home Services by Brookfield allows us to join a globally recognized and respected real estate and relocation services organization,” said John Bearden, President and CEO, GMAC Home Services. “This move will enhance the ability of two world-class organizations to pursue opportunities on a global scale. Given that both organizations have similar industry expertise and strong commitments to client service, we expect to quickly achieve the full potential represented by this transaction.”
About Brookfield Residential Property Services
Brookfield RPS is a division of Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets. Brookfield Asset Management has approximately $95 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA.
About Residential Capital, LLC
Residential Capital, LLC, an indirect wholly owned subsidiary of GMAC Financial Services, is a leading real estate finance company. ResCap’s businesses cover the U.S. residential finance industry, from origination and servicing of mortgage loans through their sale or securitization in the secondary market. ResCap operates in selected international markets and also provides capital to other originators of mortgage loans and residential real estate developers.