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.

Subscribe to Companies
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

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

Photo Galleries
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Royal wedding: How much will it cost? Meghan Markle's wedding to Prince Harry could cost millions once security is included in the bill. See how the costs break down. More
Sponsors