Brookfield Properties to pay down debt from Trizec acquisition
Last Updated: Monday, December 11, 2006 | 4:18 PM ET
CBC News
Brookfield Properties Corp., the Toronto-based commercial real estate company, said Monday it plans to issue about 30 million common shares to help pay down debt.
The company said the money raised will help repay borrowing for the company's $420 million US interest in U.S. Office Fund, which was created to invest in the acquisition of Trizec Properties, Inc. and Trizec Canada, Inc.
The money will also repay debt used to finance an additional $437 million US equity interest in Office Fund. Brookfield Properties' current stake in the fund stands at 61.7 per cent.
Brookfield Asset Management, the current holder of roughly 51 per cent of the 232 million outstanding common shares of Brookfield Properties, intends to purchase about 11.25 million more shares in the offering.
At the same time, Brookfield Properties told investors that its 2007 funds from operations are expected to be about $2.10 to $2.20 US per share — up to 17 per cent higher than the guidance the company gave in mid-2006.
The Brookfield Properties does not give income-per-share guidance.
When the Trizec deal closed earlier in 2006, Brookfield had 106 properties totalling 73 million square feet, with landmark buildings in downtown New York, Boston, Washington, Los Angeles, Houston, Toronto, Calgary and Ottawa.
Shares of Brookfield Properties closed down $1.20 at $44.75 on the TSX.
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