10:17 AM EST, 12/18/2024 (MT Newswires) -- Lennar ( LEN ) said Wednesday its recently formed subsidiary, Milrose Properties, has filed documents with federal regulators detailing a proposed spin-off of a majority stake in Millrose Properties, which will operate its land inventory as as an independent, publicly traded real estate investment trust.

The proposed spin-off is subject to final approval by Lennar's ( LEN ) board of directors and other customary conditions, the company said.

Under terms of the proposed transaction, Lennar ( LEN ) initially will distribute 80% of Millrose's outstanding stock through a taxable spinoff to its shareholders, according to a Form S-11 filing Wednesday with the US Securities and Exchange Commission. It also will provide the new company with $900 million in cash that Millrose will use to acquire the real estate assets of privately held Rausch Coleman Companies.

Lennar ( LEN ) expects to eventually spin off the remaining 20% of Millrose Properties to shareholders at a later date, it said.

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