Oct. 28 (Bloomberg) -- Cyrela Brazil Realty SA Empreendimentos e Participacoes, Brazil’s biggest homebuilder, raised 1.04 billion reais ($601.5 million) in the fourth real- estate company share sale in Brazil this month.

Cyrela is selling as much as 47.3 million new voting shares at 22 reais each, according to a statement sent to Brazil’s securities regulator Web site yesterday evening. The offering was priced below Cyrela’s average of 24.76 reais in the last month of trading in Sao Paulo, and may be increased with a supplementary offer of 6.45 million shares for a total of 53.8 million shares, according to the prospectus.

The share sale contributed to a tumble in prices of Brazilian real-estate companies yesterday amid speculation that Gafisa SA, Brazil’s second-biggest builder, also will sell equity next year. Three other property companies, Rossi Residencial SA, PDG Realty SA Empreendimentos & Participacoes and Brookfield Incorporacoes SA, sold stock this month.

“Despite the positive outlook for the construction industry, share offers in the pipeline should pressure stocks in the short term,” Eduardo Silveira, an analyst at Fator Corretora in Sao Paulo, wrote in a note yesterday.

Cyrela, based in Sao Paulo, fell 6.9 percent yesterday to 22.40 reais. The stock has slumped 17 percent since Oct. 19, when the Brazilian government imposed a 2 percent tax on the purchase of equity and fixed-income assets by foreigners in a bid to stem a rally in the Brazilian real. The shares were trading last week for almost 31 times profit, the highest valuation since at least 2007.

Banco de Investimentos Credit Suisse (Brasil) SA is coordinating the sale with Banco Bradesco BBI SA, Goldman Sachs do Brasil Banco Multiplo SA, Banco Itau BBA SA and Banco Santander (Brasil) SA. The new shares will trade on Oct. 29.

To contact the reporter on this story: Fabiola Moura in New York at fdemoura@bloomberg.net

Last Updated: October 27, 2009 22:00 EDT