SAO PAULO, June 2 Brazilian real estate company
BR Properties SA is planning to raise about 1 billion
reais ($309 million) by selling new shares, newspaper O Estado
de S. Paulo reported on Friday.
Buyout firm GP Investments Ltd and sovereign
wealth fund Abu Dhabi Investment Authority will subscribe to
about 70 percent of the so-called follow-on offering, Estado
said, without disclosing how it obtained the information.
Last year, GP acquired a controlling stake in BR Properties,
backed by the sovereign wealth fund.
Media representatives for BR Properties declined to comment
on the report. Representatives for the Abu Dhabi Investment
Authority and GP were unable to comment immediately.
BR will use proceeds from the transaction, which could be
announced in coming days, to cut debt, potentially paving the
way for acquisitions, according to the report.
The company is focusing on expanding as Latin America's
largest economy exits from its deepest recession on record,
which drove property prices down.
The company has hired the investment banking units of Banco
Bradesco SA, Itaú Unibanco Holding SA,
Santander Brasil SA and Bank of America Merrill
Lynch as underwriters, Estado reported.
BR Properties Chief Executive Officer Martin Jaco had said
in September the company was looking at whether to raise new
capital through a share offering. Management had identified 4
billion reais worth of acquisition targets among office and
industrial properties, he added.
($1 = 3.2395 reais)
(Writing by Ana Mano; Editing by Lisa Von Ahn)