BR Properties SA -- a Brazilian
property developer, plans to raise as much as 1.7 billion
reais ($920 million) in an initial share sale next month,
extending a run of stock offerings by real-estate companies
in the country.
Sao Paulo-based BR Properties plans to sell 57.5 million
new shares and existing investors will offer about 14.4 million.
BR Properties may sell as many as 23 million additional shares,
it said in a prospectus published in the Valor Economico
newspaper today. The price will be set on March 4 and is
estimated at 14 reais to 18 reais, the company said. The shares
will start trading on Brazil’s Bovespa exchange on March 8.
Brazilian property companies are raising capital as the
industry benefits from the recovery of Latin America’s largest
economy and increasing salaries. Nine real-estate companies in
the country sold shares in 2009 and three have done so this
year, according to the Web site of BM&FBovespa SA, owner of the
Sao Paolo stock exchange.
Banco Itau BBA SA will manage the sale, together with the
local investment arms of Banco Bradesco SA, Goldman Sachs Group
Inc., Banco Santander SA, UBS AG and Banco Safra SA, according
to the prospectus.
Gafisa, the country’s second-biggest homebuilder, said on
Feb. 8 that it plans to raise about 1 billion reais. That
followed an offering last year from larger rival Cyrela Brazil
Realty SA Empreendimentos e Participacoes.