Brookfield Properties Corporation (TSX: BPO, NYSE: BPO) is a Toronto-based North American commercial real estate company. Brookfield Asset Management owns 50% of its outstanding common shares.
Brookfield owns, manages and develops premier office properties in the downtown core of New York City, Washington, D.C., Boston, Denver, Minneapolis, Toronto, Calgary, Ottawa, and Vancouver. Brookfield’s properties include One Liberty Plaza and the World Financial Center in New York City; Brookfield Place (formerly BCE Place), First Canadian Place, and Queen’s Quay Terminal in Toronto; Canadian Western Bank Place and Enbridge Tower in Edmonton; Suncor Energy Centre, Fifth Avenue Place, Altius Centre, Herald Building, and Bankers Hall in Calgary; and Royal Centre in Vancouver. It also operates real estate service businesses and has a land-development business primarily based in Canada.
Secondary offering August 12
(From Reuters) Brookfield Properties Corp. Prices $900 Million Common Share Offering
Wednesday, 12 Aug 2009 10:23am EDT (F-10 here)
Brookfield Properties Corp. announced that it has entered into agreements for the sale of 95 million of its common shares at a price of $9.50 per share. Pursuant to an underwriting agreement with a syndicate of underwriters comprised of RBC Capital Markets, Citi, Deutsche Bank Securities and TD Securities acting as joint book-running managers, the underwriters have agreed to purchase 47.5 million common shares of Brookfield Properties at a price of $9.50 per share. Concurrently, Brookfield Asset Management Inc. has agreed to purchase, directly or indirectly, 47.5 million common shares of Brookfield Properties at a price of $9.50 per share. The gross proceeds to Brookfield Properties from the combined share issuances are expected to total $902.5 million. Closing is expected to occur on or about August 21, 2009. Brookfield Properties has agreed to grant the underwriters an over-allotment option, exercisable at any time until 30 days following the closing of the offering, in whole or in part, to purchase up to an additional 7.125 million shares at a price of $9.50 per share. If the entire over-allotment option is exercised, the gross proceeds to Brookfield Properties are expected to total approximately $1 billion. The proceeds from this offering will be used for general corporate purposes, including without limitation, the refinancing of indebtedness and investment purposes.
REIT IPO bubble? (quoted below)
On Tuesday, Sep. 22 two REIT IPOs:
1) Colony Financial (CLNY)
25 million at $20
Acquire, originate and manage a diversified portfolio of real estate related debt instruments.
2) Apollo Commercial (REIT) (ARI)
20 m shares at $20.00
REIT focusing on commercial mortgage loans
On Thursday, Sep. 24
Foursquare Capital Corp. (FSQR)
25 m shares at $20
Focus on acquiring residential mortgages
On Tuesday, September 29:
Ladder Capital Realty (LCG) Tuesday, Sep. 29
20 m shares at $20.00
REIT that will acquire and manage commercial real estate first mortgage loans secured by income-producing properties.
I could be biased toward Brookfield, but I felt this one is more interesting.
Brookfield Realty Capital will originate, invest in, and manage, a portfolio of commercial mortgage loans and is seeking to raise up to $500 million in a deal to be managed by Goldman Sachs, according to a prospectus filed with the U.S. Securities and Exchange Commission.
Brookfield said it will use the proceeds from its IPO to originate and acquire mortgage loans, and mezzanine loans, and possibly commercial mortgage-backed securities.
The REIT will be managed by a wholly owned subsidiary of Brookfield Asset Management Inc.
REITs usually pay out 90% of income as dividend to REITs holders, and because REIT trust does not pay income tax, the holders of REITS need to pay ordinary income tax to the government, note the rate of ordinary income tax rate is usually higher than the 15% dividend tax rate (for most people in the US).