BR Properties Advances on Merger With BTG Real Estate Unit

BR Properties SA (BRPR3) rose for the first time in five sessions after the Brazilian property developer and Banco BTG Pactual SA, whose chief executive officer is billionaire Andre Esteves, agreed to merge their real-estate assets in an all-share transaction.

BR Properties increased 1.5 percent to 17.51 reais at the close of Sao Paulo trading at 4:15 p.m. New York time after earlier jumping as much as 6.7 percent, the most intraday since May 2010. The benchmark Bovespa index climbed 0.2 percent.

The company will incorporate the real estate assets of BTG Pactual and the bank’s WTorre Properties SA unit, BTG Pactual said in an e-mailed statement yesterday. In the new merged company, BR Properties shareholders will have 58.1 percent of the total capital, while BTG Pactual will have 30.8 percent, according to the statement.

“We believe the deal is accretive for BR Properties since it consolidates the company as the market leader with a high- quality portfolio and managed by a very results-focused group,” Credit Suisse Group AG’s analysts including Guilherme Rocha said in a research note e-mailed to clients today.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

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