Brookfield Properties, one of Manhattan's biggest landlords, said on Monday it would raise C$150 million by selling 6 million preferred shares.
The company said it agreed to issue the shares to a syndicate of underwriters led by CIBC and Scotia Capital Inc at C$25 a share, and the proceeds would be used for general corporate purposes.
The preferred shareholders will be entitled to receive a cumulative quarterly fixed dividend yielding 6.75 percent annually for the initial five-year period ending Sept. 30, 2014, Brookfield said in a statement.
The offering is expected to close on or about Sept. 24, the company said.
Brookfield said underwriters will have an over-allotment option of 900,000 preferred shares at the same price. If the over-allotment option is fully exercised, the total gross proceeds of the financing will be C$172.5 million.
Shares of the company were trading down 47 Canadian cents at C$11.93 Monday afternoon on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)