Brookfield Residential Property Services Acquires GMAC Home Services
Acquisition represents important expansion into US market
TORONTO, ONTARIO -- (MARKET WIRE) -- 09/23/08 -- 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
Following the acquisition, BRPS will have one of the largest
relocation companies in the world and its REALTOR(R) network will be
almost 30,000 strong, based out of 1,500 locations across North
"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
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.
This news release contains forward-looking information within the
meaning of Canadian provincial securities laws and other
"forward-looking statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, "safe harbor" provisions
of the United States Private Securities Litigation Reform Act of 1995
and in any applicable Canadian securities regulations. The words
will," "expect," "believe," and derivations thereof, and other
expressions which are predictions of or indicate future events,
trends or prospects and which do not relate to historical matters
identify forward-looking statements. Although Brookfield Asset
Management believes that its anticipated future results, performance
or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on
forward-looking statements and information as such statements and
information involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Brookfield to differ materially from anticipated
future results, performance or achievement expressed or implied by
such forward-looking statements and information.
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include:
economic and financial conditions in the countries in which we do
business; the behaviour of financial markets, including fluctuations
in interest and exchange rates; availability of debt financing; the
ability to effectively integrate acquisitions into existing
operations and the ability to attain expected benefits; regulatory
and political factors within the countries in which Brookfield
operates; acts of God, such as earthquakes and hurricanes; the
possible impact of international conflicts and other developments
including terrorist acts; and other risks and factors detailed from
time to time in Brookfield's form 40-F filed with the Securities and
Exchange Commission as well as other documents filed by Brookfield
with the securities regulators in Canada and the United States
including Brookfield's most recent Annual Information Form under the
heading "Business Environment and Risks."
We caution that the foregoing factors that may affect future results
is not exhaustive. When relying on forward-looking statements to make
decisions with respect to Brookfield Asset Management, investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law,
Brookfield undertakes no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
as a result of new information, future events or otherwise.
(416) 595-9776 x226
Residential Capital LLC:
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