Brascan Residential to Raise BRL200m

Brascan Residential Properties plans to raise BRL200m in a share sale to existing holders, it says. The developer controlled by Canada’s Brookfield Asset Management is set to offer 100m new ordinary shares at BRL2.00 each during a 30-day subscription period launching today. Brookfield, which owns 58.5% of the publicly-traded shares, will subscribe its proportional amount, Brascan says. Through Brascan Brasil, it will buy all of the remaining shares at the close of the offer period. “The real estate market continues to offer opportunities, but the current international crisis has reduced financing tenors, which is not compatible with the company’s strategy of having long-term financing,” CEO Nicholas Reade says in a statement. Brascan did not indicate how it intends to use proceeds.