On Wednesday, Lennar Corp. announced its intention to create a new publicly traded company by spinning off its land holdings. The company, which will be called Millrose Properties, is expected to qualify as a REIT and have an estimated value of $5 billion or more.
This move aligns with Lennar’s long-term strategy of focusing solely on the manufacturing and sale of new homes for both individual and institutional buyers. In order to achieve this goal, the Miami-based homebuilder plans to distribute approximately 80% of Millrose’s common stock to existing Class A and B shareholders in a partial spinoff that will be subject to taxation. The remaining 20% will then be sold off.
The assets being transferred from Lennar include over 105,000 homesites located in 26 different states across the country. Nearly half (47%) are located in California, Florida, and Texas – three key markets for the company.
Overall,this decision reflects Lennar’s commitment towards streamlining their operations while also maximizing shareholder value through strategic divestitures.
