Centex Sells 8.500 Homes and Lots For A Loss (But Gets a Big Dividend)
Centex cut it’s losses today on 8,500 properties that were in various stages of development. The joint venture that purchased them paid roughly 455 million dollars for the properties that were on the books for 528 million dollars.
To me this is a smart move by Centex. First they got some cash for the properties. But more importantly they got them out of their hair. We all have those things that nag at us and need to be taken care of. They typically suck the energy from things we need to be doing to improve for the future.
Centex by taking a clean loss now will be able to refocus their attention on their business of building the right new homes for the market. Sure odds are the joint venture will make some extra money on the deal, but Centex will be able to move the company in the right direction, and that is the most important part of the deal.
Dallas-based Centex said it sold 8,500 developed, partly developed and undeveloped lots in 11 states to a joint venture led by RSF Partners Inc and includes funds managed Farallon Capital Management LLC and Greenfield Partners LLC. Most of the properties are in Nevada and California.
Centex said its proceeds include the $161 million purchase price and an anticipated $294 million tax refund. via Reuters
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Comment by Darcy Creaturo on 9 April 2008:
interesting…