Brookfield Announces Closure Of Sale Of 49% Interest In Two Boston Office Properties.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 2, 2001

Brookfield Properties Corporation (NYSE:BPO)(TSE:BPO.) announced today that it has closed the previously announced transaction to sell a 49% interest in its two Boston office properties, 53 and 75 State Street, to Deutsche Grundbesitz Management GmbH, a 100% indirectly owned subsidiary of Deutsche Bank, A.G.

The total proceeds of the transaction were $337 million, $168 million of cash for the equity component, and the assumption of $169 million of property level debt.

Richard Clark, President and CEO of Brookfield's U.S. Operations stated that "we are pleased to have concluded this transaction, solidifying our partnership with Deutsche Grundbesitz Management. We look forward to working with these and other strategic partners in the future as a means of surfacing value and re-deploying our capital into other business opportunities."

The 53 and 75 State Street office properties are located at the corner of State, Congress and Kilby Streets in the heart of Boston's financial district. The properties encompass 2.1 million square feet, including 1.9 million square feet of office space.

Brookfield Properties Corporation, with over US $8 billion in assets, owns, develops and manages premier North American office properties, operates real estate service businesses and develops master planned communities. The Brookfield portfolio includes 60 properties totaling 47 million square feet, including landmark properties such as The World Financial Center in New York and BCE Place in Toronto. Brookfield is inter-listed on the New York and Toronto Stock Exchanges under the symbol BPO. For more information, visit the Brookfield Properties website at www.brookfieldproperties.com.