Brazilian Finance, controlled by Ourinvest Real Estate Holding and hedge fund firm TPG-Axon Capital Management, will issue new common and preferred stock to Coyote Trail LLC, a unit of Equity International, for an undisclosed sum.
Coyote will own 8.52 percent of Brazilian Finance after the new stock issuance, the company said in a securities filing.
Equity International's Coyote also signed a call option giving it the right to purchase another 12.18 percent in Brazilian Finance from Ourinvest, the filing said without giving a price for the transaction. The call option may be exercised between Jan. 11 and 15, Brazilian Finance said.
Zell has called Brazil one of the best places in the world to invest in real estate because of a shortage of affordable housing, the size of its economy and consumer demand. Equity International is also a major shareholder of shopping mall, commercial and residential real estate developments in Brazil. (Reporting by Elzio Barreto; Editing by David Holmes)