BankAtlantic to Spin Off RE Sub

BankAtlantic Bancorp, Ft. Lauderdale, Fla., is planning to separate Levitt Corp., its real estate development subsidiary, in a tax-free spinoff under which Levitt would become a separate publicly traded company.Subject to regulatory ruling, the transaction is expected to take place in the third or fourth quarter, the banking conglomerate said. The spinoff would include all of Levitt's 100%-owned subsidiaries: Levitt and Sons, a homebuilder; Core Communities, a developer of "masterplanned" communities; and Levitt Commercial, an industrial and retail property developer and investor. "In deciding on this course of action, we determined that Levitt Corp.'s future growth prospects would be better met as a free-standing entity, with independent access to capital and debt markets," said Alan B. Levan, chief executive officer of BankAtlantic. "Further, we believe this action will augment the ability of our banking subsidiary, BankAtlantic, to expand its capital access and improve its growth potential." The spinoff will return BankAtlantic to its "more traditional roots as a Florida-based financial services and banking company," Mr. Levan said.