25/02/2010-Confidence in the Brazilian real estate market is at a high and the fact that BR properties plans to raise 1.71 billion reais by selling shares could signal more growth for the sector.
The Sao Paulo-based BR Properties and its stockholders will jointly offer 71.88 million voting shares at a price range between 14 reais and 18 reais in a bid to raise the money approximately equivalent to a huge USD$917 million
Banks advising in the transaction could sell an additional 10.78 million shares, and stockholders could sell an additional 12.20 million, the statement added.
The BR Properties sale is expected to conclude by March 4, the statement said.
The company hired the investment banking unit of Itau Unibanco to manage the transaction, along with Banco Bradesco’s unit, Goldman Sachs Group Brazil’s Banco Safra, Spain’s Banco Santander and Swiss lender UBS
Meanwhile predications for Brazil’s economy come from Goldman Sachs Group who forecast growth in the economy by a higher-than expected 6.4% this year. Jim O’Neill, chief economist at Goldman Sachs Group Inc said at a conference in Rio de Janeiro that “We are very optimistic for the cycle of the BRIC economies in the next couple of years.”
The term “BRIC” countries generally refer to Brazil, Russia, India and China, much how Portugal, Italy, Ireland, Greece, and Spain have recently earned the name of the “PIIGS” countries. O’Neill coined the term BRICs in 2001 to describe the fastest-growing economies of the time.
O’Neill believes that the BRIC countries will grow by 9.3% this year and 8.7% in 2011.
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