Lennar and Morgan Stanley Real Estate Announce the Formation of a Strategic Land Investment Venture

Nov 30, 2007, 00:00 ET from Lennar Corporation

    MIAMI, Nov. 30 /PRNewswire-FirstCall/-- Lennar Corporation (NYSE:   LEN
 and LEN.B), one of the nation's largest homebuilders, and Morgan Stanley
 Real Estate, an affiliate of Morgan Stanley & Co., Inc., announced today
 that they have formed a strategic land investment venture to acquire,
 develop, manage and sell residential real estate. Concurrent with its
 formation, the new investment venture acquired a diversified portfolio of
 land from Lennar.
     The properties acquired by the new entity consist of approximately
 11,000 homesites in 32 communities located throughout the country. The land
 portfolio includes a mix of raw land as well as partially and fully
 developed homesites in both active and future communities. The communities
 are located in California, Colorado, Florida, Illinois, Maryland,
 Massachusetts, Nevada and New Jersey.
     Lennar acquired a 20% ownership interest and 50% voting rights in the
 investment venture. As of September 30, 2007, the acquired properties had a
 net book value of approximately $1.3 billion and the sales price was $525
 million. Lennar will manage the land investment venture's operations and
 will receive fees for its services. It will also receive disproportionate
 distributions to the extent the investment venture exceeds financial
 targets. As a part of the transaction, Lennar entered into option
 agreements and rights of first offer providing Lennar the opportunity to
 purchase certain finished homesites at current market values at the time of
 exercise from the investment venture.
     Stuart Miller, President and Chief Executive Officer of Lennar
 Corporation said: "We are very pleased to expand our long-standing
 relationship with Morgan Stanley. The combined expertise and resources
 provided by the Lennar / Morgan Stanley team will allow us to maximize the
 value of this portfolio and provide a footprint to capitalize on
 inefficiencies in today's residential real estate market. This transaction
 provides us with increased liquidity and flexibility at an opportune time."
     Citigroup Global Markets Realty Corp. acted as sole lead arranger for
 the non-recourse acquisition financing to the investment venture. Morgan
 Stanley acted as financial advisor to Morgan Stanley Real Estate.
     About Lennar Corporation
     Lennar Corporation, founded in 1954, is one of the nation's leading
 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 primarily mortgage
 financing, title insurance and closing services for both buyers of the
 Company's homes and others. 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 Morgan Stanley Real Estate
     Morgan Stanley Real Estate is comprised of three major global
 businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley Real
 Estate has acquired $158.1 billion of real estate assets worldwide and
 currently manages $88.3 billion in real estate assets on behalf of its
 clients. A complete range of market-leading investment banking services for
 real estate clients include advice on strategy, mergers, acquisitions and
 restructurings, as well as underwriting public and private debt and equity
 financings. As a global leader in real estate lending, Morgan Stanley has
 offered approximately $199.6 billion of CMBS through the capital markets
 since 1997, including $36.1 billion through the third quarter of 2007. For
 more information about Morgan Stanley Real Estate, please visit
     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. These forward looking statements include statements
 regarding our business, financial condition, results of operations,
 strategies and prospects. You can identify forward-looking statements by
 the fact that these statements do not relate strictly to historical or
 current matters. Rather, forward-looking statements relate to anticipated
 or expected events, activities, trends or results. Because forward-looking
 statements relate to matters that have not yet occurred, these statements
 are inherently subject to risks and uncertainties. Many factors could cause
 Lennar's actual activities or results to differ materially from the
 activities and results anticipated in forward-looking statements. These
 factors include those described under the caption "Risk Factors" in Item 1A
 of Lennar's Annual Report on Form 10-K for our fiscal year ended November
 30, 2006. Lennar does not undertake any obligation to update
 forward-looking statements.

SOURCE Lennar Corporation