Brookfield Converts C$300 Million of Debentures to Common Shares.

Business Editors

TORONTO--(BUSINESS WIRE)--June 30, 2000

Brookfield Properties Corporation (NYSE:BPO) (TSE:BPO) today announced that C$300 million of subordinated convertible debentures of the company were converted by holders into 20,000,000 shares of the company, in accordance with the terms of the debentures.

After conversion of these debentures and the repurchase of 1,390,100 million common shares during 2000 under the company's normal course issuer bid, the number of common shares outstanding is 151,511,134. On a fully diluted basis, the number of common shares outstanding is 159,192,584

Bruce Flatt, President and Chief Executive Officer of Brookfield commented that "this transaction is positive for Brookfield as it adds C$300 million of equity to our permanent capital base and strengthens our balance sheet."

Brookfield Properties Corporation, with over US$8 billion in assets, owns and manages premier North American properties, operates service businesses for real estate companies and develops master planned communities. The Brookfield portfolio comprises 50 commercial properties totalling 37 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.