Lennar, LNR to Buy Newhall Land

Lennar Corp., LNR Property Corp., and Newhall Land and Farming Co. have announced an agreement under which an entity owned half by Lennar and half by LNR will acquire Newhall Land, a Los Angeles-based planner of master-planned communities.The agreement provides that Newhall Land's unitholders will receive $40.50 per partnership unit in cash, which will increase at a rate of 5% annually beginning 270 days from July 21, the companies said. The purchase consideration will total approximately $990 million plus liabilities. The companies said the transaction is subject to the approval of the California Public Utilities Commission because of the change of control of Valencia Water Co. that would result from the purchase. When the transaction closes, LNR will buy existing income-producing commercial assets and Lennar will option certain homesites from the joint venture. Lennar is one of the nation's largest homebuilders, and LNR is a real estate investment, finance, and management company. Both are based in Miami.