iStar Financial Announces Ownership Group to Sell LNR Property LLC
NEW YORK, Jan. 24, 2013 /PRNewswire/ -- iStar Financial Inc. (SFI) announced today that the owners of LNR Property LLC ("LNR"), including iStar, have signed a definitive agreement to sell LNR for a total purchase price of $1.05 billion. iStar's 24% ownership interest in LNR is expected to generate $220 million in net proceeds at closing after closing costs and LNR management incentives.
"As we continue to streamline our balance sheet and focus on our core businesses, this transaction provides us with fresh capital that we can deploy into new investments and frees up resources that can be directed towards our existing business lines," said Jay Sugarman, iStar's chairman and chief executive officer. Mr. Sugarman has served as chairman of the board of directors of LNR since its recapitalization in July 2010.
The transaction is expected to close during the second quarter of 2013, subject to customary closing conditions. Lazard is serving as financial advisor to iStar and the other sellers in connection with this transaction.
* * *
iStar Financial Inc. is a fully-integrated finance and investment company focused on the commercial real estate industry. The Company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. The Company, which is taxed as a real estate investment trust ("REIT"), has invested more than $35 billion over the past two decades. Additional information on iStar Financial is available on the Company's website at www.istarfinancial.com.
SOURCE iStar Financial Inc.