Brookfield Properties to Raise $900M in Stock Sale

NEW YORK -- Brookfield Properties Corp. on Tuesday said it plans to raise $900 million through a public common stock offering and private sale.

The real estate developer and manager said it filed a registration statement with the Securities and Exchange Commission to sell about $450 million in common shares. It expects to grant underwriters the option to purchase up to an additional 15 percent of the base offering to cover overallotments, if any.

At the same time, Brookfield Asset Management, which currently holds an approximately 51 percent voting interest in Brookfield Properties, intends to purchase common stock in order to maintain the size of its voting stake as the amount of the company's outstanding shares is increased.

Brookfield is the latest in a series of real estate companies using stock and debt offerings to raise funds amid the tight commercial credit market. Shopping mall owner Federal Realty Trust priced an offering aimed at raising $96 million earlier Tuesday. Real estate investment trust Boston Properties Inc. raised about $842 million in June. Others who have made similar moves include mall owner Simon Property Group Inc. and the retail-focused Regency Centers Corp.

The proceeds from the Broofield offering will be used for general corporate purposes, including refinancing debt and making investments.

Brookfield Properties develops and manages office properties in major cities in the U.S. and Canada. Brookfield Asset Management focuses on property, renewable power and infrastructure assets.

Separately, the companies said they formed a $4 billion investor consortium that will invest in underperforming real estate. The group will target corporate property restructurings with a minimum $500 million equity commitment. While working worldwide, it will focus on North America, Europe, Australia and Asia. link....