Lennar, Morgan Stanley in real estate deal

Troubled homebuilder sells property portfolio for $525 million to new investment venture owned mostly by the Wall Street bank.

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LONDON (CNNMoney.com) -- Homebuilder Lennar Corp. has sold a property portfolio to a new venture mostly owned by an affiliate of Wall Street bank Morgan Stanley for $525 million.

Lennar (Charts, Fortune 500) said late Friday it had formed an investment venture with the real estate arm of Morgan Stanley (Charts, Fortune 500) to buy, develop and sell residential property.

As part of the deal, Lennar sold the entity about 11,000 home sites. The properties had a book value of about $1.3 billion as of Sept. 30 and are located in 32 communities across the country.

Lennar owns a 20 percent stake in the new investment venture. It also will receive fees for managing its operations. To top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.