UPDATE 1-Lennar gets $700 mln from stake sale in joint venture

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Feb 28 (Reuters) - Homebuilder Lennar Corp. (LEN.N) said it completed a sale of a major stake in a $2.6 billion California venture to MW Housing Partners for about $700 million in cash.

The transaction is part of a sale of stake in the LandSource joint venture by Lennar and Cerberus's LNR Property Corp. The joint venture owns 15,000 acres in southern California.

Lennar said the deal will contribute about $170 million to its first-quarter earnings and an additional $400 million to profits in the future. In addition, Lennar will receive fees in connection with the management of LandSource.

MW Housing will contribute cash and property to the venture with a combined value of $970 million, the company said Following the deal, MW Housing will have a 68 percent stake in Landsource, while Lennar and LNR Property Corp. will each have 16 percent.

MW Housing is co-managed by real estate investment management company MacFarlane Partners and includes the California Public Employees' Retirement System (CalPERS).

(Reporting by Hari Kumar in Bangalore)

((Editing by Anthony Kurian, Anil D'Silva; Reuters Messaging: hari.kumar.reuters.com@reuters.net; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800 )) Keywords: LENNAR TAKEOVER/MWHOUSING

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