General Motors is seeking funds to invest in its world quarters in downtown Detroit: the Renaissance Center. The primary target of GM's funds pitch is the Police and Fire Retirement System, and they are trying to approach the city's other major pension fund, the General Retirement System.
The goal, according to the Detroit News, is to have the two Pension funds finance $500 million (or 80%) of the value of the corporate owned building. GM spokesman Tom Wilkinson wouldn't confirm a number, but said that the figures given by the Detroit News were "in the ballpark."
The search for investors for the Renaissance Center began in May when the previous lease by GM expired. GM does not plan to leave the landmark building, and some are optimistic about the Police and Fire Retirement System deal as many pension funds include real estate as part of their portfolios. In fact, both of the local funds themselves have invested in the recently reopened Westin Book Cadillac Hotel.
Although the search for investors in part of a $15 billion liquidity plan that GM in currently running, Wilkinson insists that the automaker would be seeking this deal regardless of its financial situation.
Source: Automotive News