TORONTO--(BUSINESS WIRE)--Aug. 11, 2009--
Brookfield Asset Management Inc. (NYSE/TSX/Euronext: BAM) and Brookfield
Properties Corporation (NYSE/TSX: BPO) (collectively, “Brookfield”)
today announced the formation of a US$4 billion Investor Consortium
dedicated to investing in under-performing real estate. The Consortium
will invest in equity and debt in under-valued real estate companies or
real estate portfolios where value can be created for stakeholders in a
variety of ways, including financial and operational restructuring,
strategic direction or sponsorship, portfolio repositioning,
redevelopment or other active asset management. Investments will be
targeted at corporate property restructurings with a minimum US$500
million equity commitment, and pursued on a global basis, but with a
focus on North America, Europe and Australasia.
In addition to Brookfield, the participants in the Consortium consist of
a number of institutional real estate investors who have each allocated
between US$300 million and US$1 billion to the Consortium. Brookfield
has allocated US$1 billion to the Consortium with opportunities in the
office sector being funded by Brookfield Properties, at its option, and
opportunities in other sectors being funded by Brookfield Asset
Management. The Consortium participants have expertise in investing
across different geographies and property types and this expertise will
be pooled together to maximum advantage in individual investment
opportunities.
“This is the next step in our global property growth plan, as it
combines our strength as one of the world’s leading real estate
operating companies with our extensive expertise in corporate
restructurings and strategic acquisitions,” said Ric Clark, CEO of
Brookfield Properties.
Brookfield is one of the largest property investors on a global basis
with over US$38 billion of real estate assets under management.
Brookfield currently has over 400 investment and restructuring
professionals globally, and real estate investments in 10 countries,
with 31 real estate offices and over 190 properties and development
sites consisting of 125 million sq. ft. Brookfield also has over three
decades of restructuring experience having engaged, over the years, in a
significant number of corporate restructurings, both in the real estate
sector and in other sectors of the economy.
“We believe that the current distressed economic environment and the
dislocation both in real estate values and financing availability
creates a compelling opportunity to pursue transactions on a global
basis where we can utilize our restructuring and operating capabilities.
We look forward to creating value for all stakeholders,” said Cyrus
Madon, Senior Managing Partner, Restructurings.
Brookfield Asset Management Inc. (TSX/NYSE: BAM, Euronext: BAMA)
is focused on property, renewable power and infrastructure assets and
has over US$80 billion of assets under management. The company’s common
shares are listed on the New York and Toronto stock exchanges under the
symbols BAM and BAM.A, respectively, and on Euronext under the symbol
BAMA. For more information, visit www.brookfield.com.
Brookfield Properties Corporation owns, develops and manages
premier office properties. Its current portfolio is comprised of
interests in 108 properties totaling 75 million square feet in the
downtown cores of New York, Boston, Washington, D.C., Los Angeles,
Houston, Toronto, Calgary and Ottawa, making Brookfield Properties one
of the largest owners of commercial real estate in North America.
Landmark assets include the World Financial Center in Manhattan,
Brookfield Place in Toronto, Bank of America Plaza in Los Angeles and
Bankers Hall in Calgary. The company’s common shares trade on the NYSE
and TSX under the symbol BPO. For more information, visit www.brookfieldproperties.com.
Note: This press release contains forward-looking statements and
information within the meaning of applicable securities legislation.
Although Brookfield Asset Management and Brookfield Properties believe
that the anticipated future results, performance or achievements
expressed or implied by the forward-looking statements and information
are based upon reasonable assumptions and expectations, the reader
should not place undue reliance on forward-looking statements and
information because they involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the company to differ materially from anticipated future
results, performance or achievement expressed or implied by such
forward-looking statements and information. Factors that could cause
actual results to differ materially from those set forth in the
forward-looking statements and information include general economic
conditions; local real estate conditions, including the development of
properties in close proximity to the companies’ properties; timely
leasing of newly-developed properties and re-leasing of occupied square
footage upon expiration; dependence on tenants' financial condition; the
uncertainties of real estate development and acquisition activity; the
ability to effectively integrate acquisitions; interest rates;
availability of equity and debt financing; the impact of newly-adopted
accounting principles on the companies’ accounting policies and on
period-to-period comparisons of financial results; and other risks and
factors described from time to time in the documents filed by the
companies with the securities regulators in Canada and the United States
including in Brookfield Properties’ Annual Information Form under the
heading "Business of Brookfield Properties - Company and Real Estate
Industry Risks" and in Brookfield Asset Management’s Annual Information
Form under the heading “Business Environment and Risks”. The companies
undertake no obligation to publicly update or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, except as required by law.
Source: Brookfield Asset Management Inc. and Brookfield Properties Corporation
Brookfield Asset Management
Media
Denis
Couture, 416-956-5189
SVP, Corporate and International Affairs
Fax.:
416-363-2856
dcouture@brookfield.com
OR
Investor
Relations
Katherine Vyse, 416-369-8246
SVP, Investor
Relations and Communications
Fax.: 416-363-2856
kvyse@brookfield.com
OR
Brookfield
Properties Corporation
Melissa Coley, 212-417-7215
VP,
Investor Relations and Communications
Fax.: 212-417-7262
melissa.coley@brookfieldproperties.com
