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LNR sold for $1.5 billion

The deal does not affect the homebuilder Lennar, which has operated as a separate compny since 1997

Posted: January 25, 2013 2:00 a.m.
Updated: January 25, 2013 2:00 a.m.
 

A private investment firm has agreed to purchase LNR Property LLC for $1.5 billion in cash.

Starwood Property Trust, and Starwood Capital Group, announced the purchase on Thursday.

LNR is a diversified real estate investment, finance, management and development firm with over 550 employees located in 12 offices throughout the U.S. and Europe.

Under the terms of the agreement, Starwood Property Trust will acquire a number of LNR’s business segments for a total purchase price of $856 million.

In addition, Starwood Capital Group will acquire for $197 million both LNR’s U.S. Commercial Property Group and the other 50 percent of LNR’s ownership interest in Auction.com.

The Lennar Corp., a national homebuilder, is not part of this deal as the homebuilder and LNR separated years ago, an industry expert said.

LNR began as an operating unit within Lennar Corp. but Lennar spun off LNR as a separately traded public company in 1997.

In 2005, LNR was taken private by the Cerberus Companies, various entities controlled by Stuart Miller, and LNR’s management.

In 2010, LNR was recapitalized by a consortium of investors including Cerberus, Vornado, Oaktree, iStar, and Aozora.
The acquisition is expected to be completed in 2014.

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