Brookfield Completes US$500 Million Financing At 245 Park Avenue in Midtown Manhattan.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 5, 2001

Brookfield Properties Corporation (NYSE:BPO)(TSE:BPO.) today announced that it completed a US$500 million refinancing of its 1.7 million square foot 245 Park Avenue property.

The investment grade financing has a term of 10 years and a fixed rate coupon of 6.65%. The financing was underwritten by Chase Manhattan and will be placed with investors in the single asset CMBS securitization market. The financing follows the signing in December, 2000 of Chase Manhattan Bank and Bear Stearns to approximately 800,000 square feet of new 20 year leases, as well as a complete renovation of the lobby, elevators and plaza over the past two years. A portion of the funds were utilized by Brookfield to extinguish debt currently on the property, and the balance will be utilized for general corporate purposes.

Brookfield Properties Corporation, with over US$8 billion in assets, owns and manages a portfolio of premier North American office properties, operates real estate service businesses and develops master planned communities. The Brookfield portfolio includes 50 commercial properties and development sites totaling over 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.