December 12, 2012 / 1:51 AM / in 5 years

Lennar lines up $1.7 billion from China Development Bank: WSJ

(Reuters) - Home builder Lennar Corp (LEN.N) lined up $1.7 billion from state-run China Development Bank for two San Fransisco-based housing projects, the Wall Street Journal reported citing people familiar the deal.

Officials of both the companies are trying to close the deal by year-end to qualify for a tax exemption, the Journal said.

The loan will be used as capital to kick-start the Treasure Island and Hunters Point Shipyard housing projects in San Francisco, the Wall Street Journal reported.

    According to the paper, officials from the Miami-based Lennar, including the head of its San Francisco office Kofi Bonner, traveled to China last week and reached a deal on Friday.

    The journal also said that a Chinese contractor was expected to be involved in the project, and the state-run China Railway Construction Corp Ltd (601186.SS) was the front-runner to fill that role.

    Lennar was not available for comment.

    Reporting By Vishal Krishnan Menon in Bangalore

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