GE Capital strikes 2 asset sale deals

GE Capital strikes 2 new deals to sell property, fleet management portfolios

Associated Press

NEW YORK (AP) -- GE Capital is selling off some of its assets, as buyers on Friday announced two separate deals to snap up properties and fleets owned by the finance arm of General Electric.

American Realty Capital Properties Inc. said that it is buying 471 properties from GE Capital, which are mostly leased to operators of restaurants such as IHOP, Burger King and Wendy's. The New York-based real estate investment trust said the $807 million portfolio will help expand and diversify its properties.

Separately, Element Financial Corp. said that is buying GE Capital Canada's fleet management portfolio for 570 million Canadian dollars ($549.7 million). The Toronto equipment finance company said the deal will create one of the largest vehicle fleet management companies in Canada by adding 650 new customers to its existing fleet business.

General Electric Co.'s growth has been slowed lately by poor economic conditions around the globe. The company is not expecting growth this year from GE Capital or its power and water business, which together make up about half of its revenue. As a result, the Fairfield, Conn., company is looking to trim costs and improve its cash position.

GE shares fell 28 cents to close at $23.32, in line with broader market trends, and added 2 cents after hours.

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