GM buys Renaissance Center

Irony is great, isn't it? Henry Ford and the Ford Real Estate Division planned and built the Renaissance Center in Detroit, a towering behemoth shown in the picture here. Over the years, it re-invented itself with different things being changed--a rotating top floor restaurant, exhibits, and even a mall inside. General Motors has housed its headquarters in the Ren Cen for about 12 years now, and in the common business way, has leased its stay there the entire time.

But with the real estate markets floundering in the United States, GM took a "golden" opportunity and was able to buy the Ren Cen for 626 million in cash and another 200 million for offices in Pontiac, Michigan. Of course, while some critics have pounced upon this with yet again the fact that the Big three continue to cast a smoke and mirrors approach to their financials yet deals like this continue to happen, the reality is that there is also a caveat that GM has declared publicly that if real estate conditions improve that they could resell and then lease again--this is the mark of a shrewd business, and while some are haphazardly throwing out spun numbers that make this move seem very irresponsible, regardless of the economic condition that a company may be in, unless they are in the stages of bankruptcy, to me this was a no-brainer move and people should just back off.

Now, if six months down the line we see the bottom line of GM continuing to grow in the red and workers getting laid off left and right, then we may be able to raise our eyebrows a bit. But being the company that they are, they didn't get to the top of the mountain and stay there so long without taking some risks and well-calculated business moves.

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GM buys Renaissance Center

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