The LNR/Lennar venture has completed due diligence related to the venture's acquisition of The Newhall Land and Farming Co. of Valencia, CA. In addition, the venture has deposited $25 million into escrow relating to the transaction.
The transaction still is subject to approval from Newhall Land's unitholders, approval by the California Public Utilities Commission to change control of Newhall's wholly owned subsidiary, Valencia Water Co., expiration or termination of the Hart-Scott-Rodino Act waiting period and routine closing conditions.
"Lennar and LNR representatives did a thorough review of our company and its holdings, and we are pleased with their announcement to move forward with the transaction," Gary Cusumano, president and CEO of The Newhall Land and Farming Co., says in a statement. "We will now focus our efforts on presenting the transaction to our unitholders for approval later this year and obtaining the necessary approval from the CPUC."
The application for the control change of Valencia Water Co. was filed Aug. 18 with the CPUC.
Newhall Land is preparing a proxy statement to seek approval of the transaction from unitholders. The company will file the statement with the Securities and Exchange Commission before it is sent to unitholders. The company expects to mail the proxy statement in the fourth quarter.
The transaction is expected to close in the middle of next year.
Publicly traded LNR Property Corp., a diversified real estate and finance company, invests in real estate by acquiring, developing, repositioning, managing and selling commercial properties. The company's assets include office buildings, industrial/warehouse buildings, rental apartment communities, hotels, retail centers and land. LNR Property Corp. is a spin-off of Lennar Corp. formed Oct. 31, 1997. Lennar Corp. is a locally based national homebuilder started in 1954.
Newhall Land is a publicly traded community planner. Its main activities are planning the Valencia and Newhall Ranch communities, located on 34,000 acres 30 miles north of Downtown Los Angeles. Together, the communities form a very valuable landholding.
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