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Brookfield Prices $900M Stock Offering

NEW YORK CITY-Along with Toronto-based Brookfield Asset Management, Brookfield Properties has also launched a $4-billion consortium to invest in under-performing real estate.

By Paul Bubny | Updated on August 12, 2009

NEW YORK CITY-Brookfield Properties Corp. is planning to raise about $900 million by selling 95 million common shares at $9.50 per share, the company said Wednesday. The company is issuing 47.5 million common shares to the public and selling another 47.5 million to Toronto-based Brookfield Asset Management. In a separate announcement, Brookfield said Tuesday it’s launching a $4-billion consortium to invest in under-performing real estate.

Gross proceeds from the sale are expected to total $902.5 million, according to a release. The underwriters, which include RBC Capital Markets, Citi, Deutsche Bank Securities and TD Securities, have the option of purchasing up to 7.125 million additional shares. That would bring gross proceeds up to approximately $1 billion, the release states. Closing on the public offering is slated for August 21.

Brookfield Asset Management’s purchase of 47.5 million shares is intended to maintain its 51% voting interest in Brookfield Properties as the number of the company’s outstanding shares is increased. Proceeds from the stock offering will be used for “general corporate purposes,” including refinancing and investment purposes, the release states. Brookfield Properties refinanced $450 million of its debt in the second quarter, according to a prospectus on the new stock offering.

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