Lennar Said to Discuss $1 Billion Loan From Chinese Bank

Lennar Corp., the third-largest U.S. homebuilder by revenue, has signed a memorandum of understanding for a $1 billion loan from China Development Bank Corp. to fund projects in San Francisco, said four people with direct knowledge of the matter.

The loan being discussed would be extended in the next five years on the condition China Railway Construction Corp. is awarded a contract of at least $1.5 billion to build roads and bridges for a project at the neighboring Hunters Point shipyard and Candlestick Point and another on Treasure Island, said three of the people, who asked not to be identified because the talks are private. The terms of the agreement, which may be signed by November, are subject to change, the three people said.