Brookfield Completes Refinancing Of 300 Madison Avenue.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 25, 2002

Brookfield Properties Corporation (NYSE:BPO), (TSE:BPO) today announced the completion of the permanent financing of the 300 Madison Avenue project at Madison Avenue and 42nd Street in midtown Manhattan. This transaction provides refinancing of the existing $300 million mortgage loan and additional funds to complete the development of the property.

Ric Clark, President and CEO of Brookfield, stated, "This is the first financing of a major construction project in New York since September 11th and an example of our ability to leverage the strength of our high credit quality tenant base to create financial flexibility."

The financing is comprised of two series of pass through certificates. The $400 million Series 2002 A-1 certificate has a final maturity of 30 years, with an average life of 20 years. The coupon is a fixed rate of 7.262%, which was priced 1.57% over the 30-year treasury. The Series 2002 A-1 has been rated "Aa3" by Moody's and "AA-" by S&P, based on the credit quality of CIBC, which has leased the entire property for a 30 year term as its future U.S. headquarters. The balance of the financing, Series 2002 A-2, estimated to be approximately $160 million, will be funded through a Commercial Paper conduit facility and will amortize over ten years.

Construction on the project has progressed on schedule and on budget. Substantial completion of the core and shell is scheduled for August 2003. The 35-story office tower will include a glass atrium, two trading floors, a training facility, and extensive conference space. The subway station entrance at 42nd Street and Madison Avenue will be refurbished as part of the development.

Brookfield Properties Corporation, with over US$8 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 44 million square feet, and 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.

Note: This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements 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. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, local real estate conditions, timely re-leasing of occupied square footage upon expiration, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.