by Calculated Risk on 4/01/2008 01:06:00 AM

From Reuters: Centex sells 8,500 U.S. housing lots for a loss

Centex Corp ... sold a portfolio of real estate to a group of investment funds for $455 million, which represents a discount to the properties' $528 million book value.

Dallas-based Centex said it sold 8,500 developed, partly developed and undeveloped lots in 11 states ... 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.

The tax refund made the deal work. The buyers paid $161 million, and the actual cost to Centex was higher than $528 million (these properties had already been written down significantly).