CALPERS WILL INVEST IN NEWHALL RANCH STATE PENSION FUND INKS DEAL TO SINK MONEY INTO 21,000-HOME PROJECT.

Byline: ALEX DOBUZINSKIS Staff Writer

SANTA CLARITA -- The state's main pension fund will invest in the 21,000-home Newhall Ranch project, in a partnership announced Tuesday.

Money from the California Public Employees Retirement System will go to Newhall Ranch through the involvement of San Francisco-based MacFarlane Partners, which invests in real estate for the pension fund.

``Obviously, that's great news for I suspect any company involved in real estate, to have those kinds of capital resources available for future development,'' said Larry Mankin, president/CEO of the Santa Clarita Valley Chamber of Commerce.

Under the deal, MW Housing Partners, which is co-managed by MacFarlane, will acquire a 62 percent ownership stake in LandSource Communities Development LLC. LandSource is a joint venture between Lennar Corp. and LNR Property Corp., and its primary investment is with The Newhall Land and Farming Company, developer of Newhall Ranch.

``We always look for the right strategic partner, a partner that not only has a lot of depth from a capital point of view but someone who is looking at the world through the same lens,'' said Emile Haddad, chief investment officer for Lennar.

``And today, right now MacFarlane Partners is looking at things through the real estate environment and seeing that there might be some potential opportunities for them,'' he said.

While MW Housing will have a 62 percent ownership stake in LandSource, it will have just a 50 percent voting interest. Officials stressed that LandSource is not being bought by MW Housing and MacFarlane, choosing to describe the deal as a merger.

``It's an admission of a new partner,'' Haddad said.

A representative from MacFarlane declined to comment until the deal is finalized next month.

Meanwhile, Miami-based Lennar revealed Tuesday it expected a fourth-quarter loss, as the company re-evaluates what its inventory is worth with the housing industry slowing.

New home orders for the quarter were down 6 percent compared to the same period last year.

Newhall Land and Farming is co-owned by Lennar and LNR, but Lennar is its managing general partner. This month, the county Regional Planning Commission is expected to review the plans for Landmark Village, the first phase of the 21,000-home Newhall Ranch project.

Landmark Village will have 1,400 homes, and officials expect total buildout of Newhall Ranch to take 25 years.

While CalPERS money will be invested in Newhall Ranch as part of the new partnership announced Tuesday, Marlee Lauffer, spokeswoman for Newhall Land and Farming, said the Valencia-based company will continue with business as usual.

``It's really a refinancing transaction and doesn't impact any day-to-day operations,'' she said.

The Associated Press contributed to this story.

alex.dobuzinskis(at)dailynews.com

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