Brookfield Completes C$200 Million Preferred Share Issue.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 25, 2002

Brookfield Properties Corporation (NYSE:BPO)(TSX:BPO) today announced the completion of its previously announced C$200 million Class AAA, Series F preference share issue.

Brookfield issued 8 million Class AAA Preference Shares, Series F at a price of C$25.00 per share to yield 6% per annum, including 2 million shares issued on the exercise of an option granted to the underwriting syndicate. The net proceeds will be used to redeem C$200 million of Class AAA preference shares currently outstanding with an average coupon of 8.75% and held by Brascan Corporation. The Series F Preference Shares will commence trading on the Toronto Stock Exchange on September 25, 2002 under the symbol BPO.PR.F.

Brookfield Properties Corporation, with a stock market value of over US$9 billion in assets, owns, develops and manages premier North American office properties. Brookfield also operates real estate service businesses and develops residential master-planned communities. The Brookfield portfolio spans 50 commercial properties and development sites totaling 45 million square feet and over 120 million square feet of space under management. 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.