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| Centex sells portfolio of properties Centex Homes, the homebuilding subsidiary of Centex Corporation, has sold a portfolio of developed, partially-developed and undeveloped properties to a joint venture that is led by Dallas-based RSF Partners, Inc., and includes funds under management by San Francisco-based Farallon Capital Management, L.L.C., and Greenfield Partners, L.L.C., of South Norwalk, Conn. Centex will receive aggregate cash of approximately $455 million, including the purchase price of approximately $161 million and an anticipated related tax refund of approximately $294 million. The book value of the properties sold was approximately $528 million. Centex has a 5% interest in the joint venture and has the right to receive a greater share of distributions if certain financial targets are met. The joint venture was capitalized without debt. An entity controlled by RSF, Farallon and Greenfield will manage, develop and sell the properties. The transaction is anticipated to qualify predominantly as a land sale for GAAP and tax purposes. Centex has an option to purchase a limited number of lots from certain neighborhoods in the joint venture's portfolio. The portfolio of assets sold includes properties that represent approximately 8,500 lots in 27 neighborhoods across 11 states, with the majority located in California and Nevada. As a result of the transaction, Centex reduced its total supply of owned lots by approximately 10% to less than 80,000. The transaction conserves cash by eliminating about $265 million in future development costs related to the properties. write your comments about the article :: © 2008 Construction News :: home page |