Investment Fund Buys 12 Shares of Irvine Co. for $4.8 Million

A California investment fund has purchased a $4.8-million stake in the privately held Irvine Co., Orange County’s largest landowner.

Last May, Howard P. Marguleas, an Irvine Co. director since 1977, said he was selling his 5.05% minority stake in the land company. Marguleas is chairman of Sun World International, a Bakersfield-based agricultural firm in bankruptcy.

The investment fund, which was not named by Marguleas, bought 12 shares for $4.8 million, or $400,000 a share. In an attempt to raise money quickly, Marguleas is selling his shares at a discount; Irvine Co. stock has an estimated value of $617,000 a share.

So far, Marguleas has only sold about 15% of his position. In January, Claremont McKenna College, a private school near Pomona, bought $5 million worth of shares from Marguleas.

“It’s taken a little longer than we thought,” admitted Marguleas. “But this is encouraging. Despite the bankruptcy, these investors are very positive about Orange County and the Irvine Co.”

The Irvine Co. is owner and developer of the Irvine Ranch, a wide tract of land that stretches from the ocean to the mountains in Riverside County. Irvine Co. Chairman Donald L. Bren owns more than 90% of the company.

“This sale shows great confidence in Orange County despite the bankruptcy,” said Mike Danzi, managing director of Danzi Capital Group in Newport Beach. He said the two parties that purchased stakes in the Irvine Co. so far are California-based and familiar with Orange County.