Vornado Could Take Stake in LNR Property

(Reuters) – Vornado Realty Trust (VNO.N) could take a stake in LNR Property Corp, owned by Cerberus Capital Management, as part of a possible debt restructuring, a source familiar with the matter said.

Debtholders are discussing a possible debt-for-equity swap for the property company, that source said, confirming a Wall Street Journal report.

Vornado lost to Cerberus in a bid for LNR in 2004, the WSJ reported on Tuesday.

The restructuring plan, which may also see other creditors get a stake in the property company, could be completed by the end of this month, the newspaper said.

Cerberus took LNR private in 2005, according to LNR’s website. LNR was spun off from Lennar Corp (LEN.N) in 1997, separating the homebuilding business from its real estate, finance and management business, the website said.

Lennar Chief Executive Stuart Miller owns 20 percent of LNR, the WSJ reported, citing a December report by ratings agency Standard & Poor’s.

Cerberus declined to comment. A spokeswoman for LNR declined to comment and a spokeswoman for Vornado could not immediately be reached for comment. (Reporting by Megan Davies and Elinor Comlay; writing by Elinor Comlay; Editing by Gary Hill)