Cadillac Fairview completes acquisitions of C$187 million.

TORONTO--(BUSINESS WIRE)--Feb. 10, 1999--(TSE:CDF.) (NYSE:CDF) Cadillac Fairview Corporation announced today that it has completed the acquisition of two dominant Class A properties, Broward Mall in Fort Lauderdale, Florida and Encor Place in Calgary, Alberta. The properties were acquired for approximately C$187 million at an initial unlevered return on costs of approximately 8.3 percent.

Broward Mall is a 1.0 million square foot super-regional shopping centre located in the growing city of Fort Lauderdale, Florida. The shopping centre, which is anchored by four department stores, has had over US$40 million invested in various renovation programs since 1993 and produces retail sales of US$341 per square foot, 16 percent above the U.S. national average. It is 96 percent occupied.

Encor Place is a 28 storey, 362,000 square foot Class A office tower located in the mid-west core of downtown Calgary, Alberta. The building is 98 percent occupied. Average rents in place are significantly below market at C$6.24 psf providing opportunity for growth in net operating income as leases rollover. The building was acquired at a free and clear cost of under C$125 psf, or 55 percent of current estimated replacement cost.

"The acquisition of Broward Mall will add to our market position in the southeastern U.S. Broward Mall is situated in one of the fastest growing markets in North America and is well positioned to take advantage of the expected growth in both household income and population", said Jon Hagan, Executive Vice President and Chief Financial Officer. "The acquisition of Encor Place strengthens our office position in the growing Calgary market by adding a well leased Class A building with significant rental rate upside. These acquisitions continue Cadillac Fairview's strategy of growth through strategic acquisition of properties that complement our existing Canadian and U.S. portfolios and are accretive to our cash flow", he added.

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. Cadillac Fairview owns interests in 12 centres in the southeastern United States totalling 9.2 million square feet.

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.