Capmark Financial Group Inc. ("Capmark") announced today that its
subsidiaries completed the sale of significant interests in 34 loans
in its European loan portfolio to GE Real Estate for a sale price of
approximately $896 million.
The sale price represents a loss of approximately $65 million from
the valuation of the interests sold in these 34 loans as of Dec. 31
2007. Capmark intends to use the net proceeds from this sale to repay
outstanding debt and for general corporate purposes.
This transaction follows the sale on April 4, 2008 of significant
interests in five large loans in Capmark´s European loan portfolio to
GE Real Estate for a sale price of approximately $910 million.
Gregory McManus, executive vice president and chief financial
officer of Capmark, said, "The completion of this sale combined with
the prior sales of European portfolio loans provides us with
substantial liquidity for debt reduction and for investment
opportunities at attractive risk-adjusted returns."
About Capmark(R):
Capmark is a global, diversified company that provides a broad
range of financial services to investors in commercial real
estate-related assets. Capmark has three core businesses: lending and
mortgage banking, investments and funds management, and loan
servicing. Capmark operates in North America, Europe and Asia.
Forward-Looking Statements
Certain statements in this release may constitute forward-looking
statements. These statements are based on management´s current
expectations and beliefs but are subject to a number of factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These risks
and uncertainties include, among others, adverse changes in debt and
capital markets conditions, which may adversely impact Capmark´s
access to capital on acceptable terms or the value or salability of
our investment securities or real estate equity investments; interest
rate and credit spread fluctuations; adverse changes in commercial
real estate markets; changes in general economic and business
conditions, which will, among other things, affect the amount Capmark
may earn on products and services and the availability and credit
worthiness of its customers; changes in applicable laws and
regulations; risks posed by competition; currency risks and other
risks associated with international markets.
Such forward-looking statements are made only as of the date of
this release. Capmark expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in
Capmark´s expectations with regard thereto or changes in events
conditions, or circumstances on which any such statement is based.
For more information about Capmark, visit www.capmark.com.
