BR Properties to sell some assets to GLPStaff writer ▼ | Friday March 7, 2014 5:15AM ET
Brazilian real estate developer BR Properties SA will sell most of its industrial warehouses and logistics facilities to Global Logistic Properties (GLP) Limited for 3.18 billion reais ($1.36 billion).
In November, BR Properties said it would sell the properties to WTGoodman IBP Participacoes, a joint venture between Australia's Goodman Group Pty Ltd and local developer WTorre, pending a due diligence. In new filing Properties said the deal was now being carried out with GLP's LPP Empreendimentos e PParticipacoes unit after WTGoodman IBP's exclusivity agreement expired.
Cash generated by the asset sale will be used to cut debt, buy back shares and pay dividends, BR Properties said.
Nearly 25 percent of BR Properties' debt is denominated in U.S. dollars, according to Thomson Reuters data. Brazil's currency weakened about 6.6 percent against the dollar in the fourth quarter, contributing to a 32 percent jump in financial expenses in the quarter from the same period in 2013. ■
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