BR Properties Reignites IPO Talk

After shelving plans to go public in October 2007, BR Properties (BRP) is heard close to re-launching an IPO. A person familiar with the move says the plans to take the commercial property developer public are already well underway, and that 3 banks have already been informally tapped for the offering. Itau BBA Bradesco BBI and Santander appear to have scored joint books on the deal. While Credit Suisse was slated to lead the first attempt in 2007, it appears, at least initially, that it may not be among the lead banks. However, an executive at BRP says nothing has been confirmed or officially determined yet regarding timing or underwriters, and adds that the company is in no hurry to go to market. He says that BRP is particularly hesitant to pin down specific timing following its 2007 pullback, which was driven by poor market conditions. In the meantime, the developer, which is 25% owned by GP Investments, remains well capitalized, notes the official. Following its announcement to withdraw in 2007, BRP raised BRL220m with existing investors through a private raise. In addition to GP Investments, funds controlled by Rothschild, Safra and vehicles formerly held by Lehman Brothers have stakes in BRP. There is no single controlling shareholder. Any return to the market will depend largely on market conditions, notes the company executive.