Lennar and Millrose Properties
- On February 7th, Lennar completed the spin-off of Millrose Properties, the first publicly listed land banking REIT
- Millrose will acquire land, fund development, and sell finished lots to Lennar and other homebuilders via option contracts with fixed costs and schedules
- Proceeds from finished homesite sales will be reinvested into new transactions, creating a permanent capital vehicle for land banking:
- Millrose has been capitalized with >$5B in land assets and ~$1B in cash from Lennar
- Concurrently with the spin-off, Millrose has acquired ~$900M in land assets as part of Lennar’s acquisition of Rausch Coleman
- Millrose is expected to generate consistent, steady income from monthly option fees, providing predictable cash flow and investor distributions
- Millrose will be externally managed by Kennedy Lewis, a leading alternative investment firm with >$18B in AUM and a pioneer in residential land banking
- Vestra served as financial advisor to Lennar, assisting in the conceptualization of the company and REIT structure, and in the creation of marketing documents to support investor education
