MIAMI, Oct. 5, 2016 /PRNewswire/ -- Lennar
Corporation (NYSE: LEN and LEN.B) announced today that LMC, its
wholly owned subsidiary, received an additional $250 million commitment to its Lennar Multifamily
Venture ("LMV"), which completes the fund raising for this long
term multifamily development investment vehicle. With commitments
totaling $2.2 billion LMV is well
capitalized to develop and own Class A multifamily communities in
25 target markets throughout the United States.
Lennar launched LMC in 2011, and since that time the company has
been among the nation's most active developers. LMC currently has
approximately 13,300 apartment homes in 45 communities operating or
under construction and including these communities, a total
development pipeline that exceeds $7
billion and over 23,000 apartments. The company builds
high-rise, mid-rise, and garden apartment communities.
LMV's ownership includes six prominent institutional investors,
comprised of foreign pensions, sovereign wealth funds, and
insurance companies. Lennar also has a $504
million commitment to the venture.
Rick Beckwitt, President of
Lennar Corporation, said, "The success of the LMV capital raise
demonstrates the confidence venture investors have placed in
LMC and our new build to core strategy that will allow us to
maintain an ownership interest in a portfolio of income producing
communities going forward. We continue to see growing demand in
housing, both in our core homebuilding business as well as our
multifamily platform. This venture is a key building block for one
of our growing ancillary businesses."
"As the multifamily development cycle has started to mature, we
feel this is the right time to pivot to a strategy that is less
reliant on merchant building, or 'build to sell' and focuses on
'build to own' ," added Todd
Farrell, President of LMC. "We have assembled a strong
partnership with like-minded, patient capital investors and look
forward to building out a geographically diversified,
conservatively leveraged portfolio of Class A multifamily
communities."
"LMV positions us to move quickly on development opportunities,
which gives us a significant competitive advantage. We are
extremely appreciative of the world-class investors who have
committed capital to this venture and believe the vehicle gives LMC
a best-in-class ability to execute in the multifamily space," said
John Gray, Head of Investments at
LMC.
Currently, the venture has approximately 9,100 apartment homes
under development in 31 communities for a total development cost of
$3.1 billion. With the combined
equity commitments and 50% leverage, LMV has approximately
$1.3 billion in dry powder to invest
in future opportunities.
Macquarie Capital acted as a financial advisor and placement
agent for LMC.
Note Regarding Forward-Looking Statements: Some of the
statements in this press release are "forward-looking statements,"
as that term is defined in the Private Securities Litigation Reform
Act of 1995, including statements regarding LMC's development
pipeline. These statements may include opinions formed based upon
general observations and industry experience, but that are not
supported by specific investigation or analysis. These
forward-looking statements are subject to risks, uncertainties and
assumptions that could cause actual results and events to differ
materially from those contemplated by the forward-looking
statements, including the possibility of decreased demand for
multifamily rental properties; the possible inability of LMV to
successfully sell its rental properties; increases in operating
costs, including costs related to construction materials, labor,
insurance and real estate taxes, and their effects on LMV's ability
to manage its cost structure; possible difficulty obtaining debt
financing to supplement LMV participants' equity investments; the
willingness of the participants in LMV to honor their commitments;
and other risks detailed in Lennar Corporation's filings with the
SEC, including the "Risk Factors" section of Lennar Corporation's
Annual Report on Form 10-K for the fiscal year ended November 30, 2015. It is not possible for
management to predict all possible risks or to assess the impact of
such risks on us or on LMV. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
Information about Lennar
Lennar Corporation, founded in 1954, is one of the nation's
largest builders of quality homes for all generations. The Company
builds affordable, move-up and retirement homes primarily under the
Lennar brand name. Lennar's Financial Services segment provides
mortgage financing, title insurance and closing services for both
buyers of the Company's homes and others. Lennar's Rialto segment
is a vertically integrated asset management platform focused on
investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a nationwide developer of
high-quality multifamily rental properties. Previous press releases
and further information about the Company may be obtained at the
"Investor Relations" section of the Company's website,
www.lennar.com.
About Macquarie and Macquarie Capital
Macquarie is a global provider of banking, financial, advisory,
investment and funds management services. Founded in 1969,
Macquarie operates in more than 65 office locations in 28
countries, employs more than 14,000 people and has assets under
management totaling US$366 billion at
31 March 2016.
Macquarie Capital includes Macquarie's corporate advisory,
capital markets and principal investing capabilities, with
expertise spanning a variety of industry sectors including
telecommunications, media, entertainment, gaming, financial
institutions, industrials, energy, resources, real estate,
infrastructure, utilities and renewables. The real estate team
comprises over 70 executives globally and has raised in excess of
US $57 billion of equity for a large
number of real estate ventures. Macquarie Capital combines its deep
real estate expertise with capital and has invested in a number of
real estate operating companies supporting these groups to expand
their platforms.
To learn more about Macquarie, visit www.macquarie.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lennar-announces-final-close-of-22-billion-lennar-multifamily-venture-300339463.html
SOURCE Lennar Corporation