Cadillac Fairview Announces $200 Million of Financing Activity.

TORONTO--(BUSINESS WIRE)--March 1, 1999--Cadillac Fairview Co (TSE:CDF) (NYSE:CDF) Cadillac Fairview Corporation announced today that they have funded or finalized financings totalling approximately $200 million at an average fixed rate of interest of 6.6 percent with an average term of 11 years.

These proceeds will be used to retire existing financing of $115 million and will provide new funds for investment purposes of $76 million after debt prepayment costs. These financings will produce annual interest savings of approximately C$1.8 million or approximately C$0.02 per share. In connection with this activity Cadillac Fairview will incur charges for early extinguishment of long term debt of approximately $6.0 million or $0.07 per share.

At Market Mall, Cadillac Fairview and its co-owner, Cambridge Shopping Centres Limited issued C$145 million 6.64 percent first mortgage bonds due 2014. Market Mall is a 750,000 square foot super-regional shopping centre in Calgary, Alberta. The centre is anchored by The Bay and Zellers. It has 162 specialty stores which produce average sales per square foot of C$618. The centre is 97 percent leased. Cadillac Fairview has a 50 percent interest in the centre and manages the centre.

At Rideau Centre, Cadillac Fairview and its co-owners have arranged C$150 million 6.75 percent first mortgage bonds due 2014. Rideau Centre is a 682,000 square foot super-regional shopping centre in downtown Ottawa, Ontario. It has 165 specialty stores and services which produce average CRU sales per square foot of $658. The centre is 94 percent leased. Cadillac Fairview has a 31 percent interest in the centre.

At Pacific Centre, Cadillac Fairview and its co-owner TD Realty Limited issued an additional $100 million 6.3 percent first mortgage bonds due 2003. Pacific Centre is a 2.5 million square foot retail and office complex in downtown Vancouver, British Columbia. The retail component of the complex produces average sales per square foot of $673. The complex is 95 percent leased. Cadillac Fairview has a 50 percent interest in the complex.

At Encor Place Cadillac Fairview has arranged mortgage financing of $28 million at a fixed rate of interest of 6.81 percent for a term of 7 years. Encor Place is a 28 storey 362,000 square foot Class A office building in downtown Calgary. The property was recently acquired by Cadillac Fairview at a cost of C$46 million and included C$11.5 million of vendor financing at a fixed rate of 4.5 percent for 6 years. The property offers potential for growth in cash flow as existing leases have in place net rents averaging $6.24 per square foot.

"As part of our ongoing strategy to lower our cost of capital and strengthen our capital structure, we have taken advantage of these opportunities to refinance some of our existing debt and secure additional proceeds on some of our key assets at favourable rates to fund other capital requirements of our business. These financings will produce annual interest savings of approximately C$1.8 million or approximately C$0.02 per share", said Jon Hagan, Executive Vice-President and Chief Financial Officer.

Cadillac Fairview is one of the largest owners, managers and developers of commercial real estate in North America, focusing on high quality retail centres in Canada and the U.S., and office properties in major Canadian cities. It owns interests in or manages 107 properties amounting to approximately 52 million square feet in Canada and the U.S., including some of Canada's landmark properties such as Toronto Eaton Centre and Toronto-Dominion Centre in Toronto, Pacific Centre in Vancouver and Montreal Eaton Centre in Montreal.

This press release contains forward looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained such looking forward statements. These factors are described in the risk management section of Management's Discussion and Analysis of Financial Condition and Results of Operations found in the Corporation's Form 20-F currently filed with the SEC and subsequent public disclosure documents filed with the SEC.