News Releases

NEW YORK (March 1) – Barclays Capital today announced the closing of a $1.55 billion financing of LandSource Communities LLC, a joint venture of Lennar Corp. ("Lennar"), LNR Property Corporation ("LNR") and MW Housing Partners ("MWHP").

Barclays Capital was the sole lead arranger and sole lead bookrunner of the financing, which consisted of a US$1.106 billion six-year First Lien Term Loan B initially priced at Libor plus 275 basis points, a $244 million seven-year Second Lien Term Facility priced at Libor plus 450 basis points and a $200 million undrawn five-year Revolving Credit Facility initially priced at a rate of LIBOR plus 300 basis points. The pricing on the Revolving Credit Facility and Term Loan B Facility may be reduced based on certain events.

"This deal is further proof of the high-quality of LandSource’s business, assets, and position as a leader in managing land development," said Haejin Baek, Managing Director, Co-Head of US Real Estate Capital Markets at Barclays Capital. "Barclays is delighted to lead and arrange this landmark financing for LandSource and its thought-leading partners," said David Scudellari, US Head of Industrial and Real Estate Leveraged Finance"

The deal was the result of the joint efforts of Barclays Capital’s US Real Estate Capital Markets, US Leverage Finance and US Investment Banking teams.

Lennar is one of the largest homebuilders in the US. LNR is one of the nation’s leading real estate, finance, management and development companies. MWHP is co-managed by MacFarlane Partners, a leading US real estate investment management firm, and includes the California Public Employees’ Retirement System, which manages pension and health benefits for approximately 1.5 million California public employees, retirees, and their families and has more than $230 billion in assets under management.

As a result of this financing, MWHP will have a 68% financial interest in LandSource and 50% voting control of the entity. Lennar and LNR will continue to jointly serve as the administrators of LandSource and will be responsible for its day-to-day operational management.

The loan proceeds will be used to recapitalize the venture for future opportunities, finance a special distribution to Lennar and LNR, and pay down existing debt. The loan is concurrent with the contribution of cash and property by new investor MWHP in exchange for a 68 % interest. Lennar and LNR will each retain a 16 % interest in LandSource following the contribution and financing.

Barclays Capital’s US Real Estate Capital Markets Group is a leading presence in the market because of its innovative transactions. Since its inception in 2004, the group has brought several innovative deals to market. Notable transactions include: ENSEC Home Finance Pool I, the first-ever asset based securitization from the Gulf Region; the securitization of the Torre Mayor Loan, the first Mexican property to be securitized in a US fixed rate CMBS transaction, and the TERRA LNR I, the first homesite land securitization ever completed. Through these and other ground-breaking transactions, the group has made a significant contribution to the development of new CMBS market segments.

Barclays Capital’s US Leveraged Finance Group, established less than a year ago, and is quickly becoming a major player in the US capital markets with involvement in over 40 leveraged transactions totalling more than $75 billion. In addition to LandSource Communities, Barclays Capital’s US Leverage Finance Group has been chosen by Chesapeake Energy and MGM Mirage to lead their most recent bond financings (€600 million and $750 million, respectively) and by Delta Airlines to be a lead arranger in its senior secured credit facilities ($2.5 billion). Some of the most sophisticated issuers in the market place are turning to Barclays Capital.

About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating and a balance sheet of over US$1.9 trillion (£996 billion*). With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs. Barclays Capital has offices in 26 countries, employs over 13,200 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide.

For further information about Barclays Capital, please visit our website www.barclayscapital.com.

*US$ figure was derived using the US$/£ exchange rate at 31.12.06 of US$1.96/£1

AboutLandSource Communities LLC
LandSource Communities is a joint venture of Lennar Corp. ("Lennar"), LNR Property Corporation ("LNR") and MW Housing Partners ("MWHP"). LandSource was formed as a land bank for the development of master planned communities for commercial and homebuilding and has over 30 communities with over 35,000 single family detached and attached homesites and apartments and significant real estate assets in Los Angeles, Sacramento, Las Vegas and Florida.

Barclays Capital Contacts

Peter Truell
(212) 412-7576
peter.truell@barclayscapital.com

Tom Vogel
(212) 412-7549
tom.vogel@barclayscapital.com

Kristin Friel
(212) 412-7521
kristin.friel@barclayscapital.com