Brookfield Announces Distribution Date of Brookfield Homes Corporation of January 6, 2003.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 13, 2002

Brookfield Properties Corporation (NYSE:BPO)(TSX:BPO) announced that January 6, 2003 will be the distribution date of Brookfield Homes Corporation to shareholders. On that date, Brookfield Properties Corporation common shareholders of record on January 2, 2003 will receive a special distribution equivalent to one-fifth of a Brookfield Homes Corporation share for each Brookfield Properties Corporation common share that they own.

The change in distribution date from December 31, 2002 to January 6, 2003 was made to coordinate regulatory approvals and minimize shareholder administration in the current year. Upon completion of the distribution, Brookfield Homes will be a Delaware corporation listed on the NYSE under the symbol "BHS."

As previously announced, Brookfield is holding a special meeting of shareholders on Monday, December 16, 2002 at 11am at which shareholders will vote on a special resolution authorizing a reduction in the stated capital of the common shares of the corporation in order for the distribution to occur on a more tax-efficient basis.

For further information on the Brookfield Homes spin-off, please refer to the Form 10/A of Brookfield Homes and the Management Proxy Circular of Brookfield Properties Corporation in the Investor Relations/Financial Reporting section on the Brookfield Properties website:

www.brookfieldproperties.com.

Brookfield Properties Corporation

Brookfield Properties Corporation, with a stock market value of $9 billion, owns, develops and manages premier North American office properties. The Brookfield portfolio comprises 50 commercial properties and development sites totaling 45 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. Brookfield Homes Corporation

Brookfield Homes Corporation is a residential home builder which also develops land in master-planned communities and infill locations. The company designs, develops and markets single-family and multi-family homes primarily to move-up and luxury buyers and develops land which is sold to other home builders. The company's operations are currently in four markets: the San Francisco Bay Area; Southland / Los Angeles; San Diego / Riverside; and Northern Virginia. For more information, visit the Brookfield Homes website at www.brookfieldhomes.com.