Newhall Land Sells Parcel North of Sacramento

Newhall Land & Farming Co. said it completed the sale of a 3,600-acre portion of its Wilson Ranch for $13.9 million, which will account for virtually all of Newhall’s first-quarter profit.

The ranch, totaling 4,800 acres, is near the Sacramento River about 75 miles north of the state capital. Selling most of its acreage is part of Newhall’s plan to dispose of agricultural parcels that have limited or no potential for real estate development.

Newhall’s primary business is real estate development, and its crown jewel is the master-planned community of Valencia, where Newhall also has its headquarters.

The Wilson Ranch sale will contribute about $9.9 million to Newhall’s first-quarter net income, the company said. A year earlier, Newhall earned $7.9 million.

The company said the sale will account for almost all of its first-quarter 1992 profit because the weak economy is making it hard for developers to finance new projects, and so those developers are not buying industrial or residential land from Newhall.