GMAC Institutional Advisors is selling its mortgage business to Quadrant Real Estate Advisors, a new firm co-owned by Australian real estate operating and investment firm Mirvac Group and four former senior executives of GMAC Institutional Advisors, according to GMAC and Mirvac news releases. Terms were not disclosed. The mortgage business consists of A$3.1 billion (US$2.3 billion) in U.S. real estate debt in separate accounts and commingled funds. GMAC Commercial Mortgage Corp. will provide loan servicing and administration services for Quadrant.
The four former GMAC Institutional Advisors executives — Kurt Wright, Walt Huggins, Tom Mattinson and Michael Wood — all came to GMAC from Lend Lease Real Estate Investments in 2000.
The sale "provides those clients with continuity of management and services," said Brian DiDonato, president of GMAC Institutional Advisors. GMAC Institutional Advisors will set up a new team to manage high yield and opportunistic lending. The company also plans to expand beyond the United States to Asia and Europe.
Investors in the mortgage business Quadrant is buying include the $205.7 billion California Public Employees' Retirement System, Sacramento; $2.5 billion Denver Public Schools Retirement System; and the Minnesota State Board of Investment, St. Paul, Minn., which manages $40 billion in pension assets and $10 billion in other state assets.