Brookfield Properties Completes 1.2M-SF Lease Renewal and Expansion with KBR at Cullen Center in Downtown Houston

Largest U.S. Office Lease Since Fall 2008

NEW YORK--(BUSINESS WIRE)--Brookfield Properties Corp. (BPO: NYSE, TSX) announced today that it has completed a lease renewal and expansion with KBR for a total of 1.2 million square feet of office space at KBR Tower (above photo)  and 500 Jefferson St. in downtown Houston.
 

“Successfully completing an office transaction of this size – involving a significant expansion – speaks to the increase in tenant activity we are beginning to see around our major markets, says Dennis Friedrich,(middle right photo)  president & CEO of Brookfield Properties’ U.S. Commercial Operations.

KBR renewed its existing 700,000 square feet of space at KBR Tower as well as nearly 300,000 square feet at 500 Jefferson St. and is expanding its presence in both buildings by a combined 234,000 square feet.

“We are thrilled that KBR has chosen to renew and expand office space at two of our properties in the Cullen Center complex, including the tower that bears the company’s name,” said Paul Layne, (middle left photo)  regional head for Brookfield Properties’ Houston operations.

“Expanding our downtown Houston presence is not only a good business decision, but also brings the added benefit of contributing to our City’s continued downtown revitalization,” said Klaudia Brace, (bottom right photo) Senior Vice President, Administration for KBR.

Dan Bellow and Mike Boehler of Jones Lang LaSalle represented KBR in lease negotiations. Brookfield was represented in-house by Mr. Layne and Paul Frazier.

The Cullen Center complex consists of four office towers: the two mentioned above as well as Continental Centers I & II. These towers offer a unique combination of office space in one mixed-use complex. Amenities include a food court, the Crowne Plaza Cullen Center Hotel, full-service banking facilities, along with numerous other retail amenities and conference facilities.

 The complex is situated adjacent to the downtown YMCA and the Metropolitan Business and Sports Club. Abundant parking in four attached garages, convenient access to the freeway system, and numerous adjacent Metro stops add to the prominence of complex. Cullen Center is inter-connected by an overhead walkway and is accessible via the extensive downtown tunnel system.

Brookfield Properties owns, manages and operates 9.1 million square feet of commercial space in Houston.

Brookfield Properties owns, develops and manages premier office properties. Its current portfolio is comprised of interests in 110 properties totaling 75 million square feet in the downtown cores of New York, Boston, Washington, D.C., Los Angeles, Houston, Toronto, Calgary and Ottawa, making it one of the largest owners of commercial real estate in North America.

Landmark assets include the World Financial Center (above centered photo)  in Manhattan, Brookfield Place in Toronto, Bank of America Plaza in Los Angeles and Bankers Hall in Calgary. The company’s common shares trade on the NYSE and TSX under the symbol BPO. For more information, visit www.brookfieldproperties.com.

Contacts:  Brookfield Properties, Melissa Coley, 212-417–7215, Vice President, Investor Relations and Communications, melissa.coley@brookfieldproperties.com

Brookfield Stock Issue Grosses $1.04B; Weingarten Offering Set at $100M; HPT Selling 8M Shares

NEW YORK, NY—Another busy day in the financial markets.

Brookfield Properties Corp. announced its underwriters exercised their entire over-allotment option to purchase an additional 7.125 million common shares of Brookfield Properties at a price of $9.50 per share.

At the same time, Brookfield Asset Management (BAM: NYSE, TSX) is purchasing directly or indirectly 7.125 million shares representing an equivalent number of shares on a pro rata basis.

The gross proceeds to Brookfield Properties from the exercise of the over-allotment option and the concurrent sale of additional shares to Brookfield Asset Management total $135.4 million.

The total gross proceeds to Brookfield Properties raised in the equity offering from the combined share issuances total $1.04 billion.

Closing is expected to occur on August 21, 2009. RBC Capital Markets, Citi, Deutsche Bank Securities and TD Securities are acting as joint book-running managers.

Weingarten Realty Investors Prices $100M of Senior Unsecured Notes

In Houston, TX, Weingarten Realty Investors (NYSE:WRI) announced today the pricing of $100 million of 8.10% notes due 2019 in an underwritten public offering through Wells Fargo Securities, LLC, RBC Capital Markets Corp. and Morgan Keegan & Co., Inc., as joint book-running managers.

The offering is expected to close on Aug. 19, 2009, subject to customary closing conditions.

The company intends to use the net proceeds of the offering for general business purposes, including reducing amounts outstanding under its revolving credit facility.

Hospitality Properties Trust Selling 8M Common Shares

In Newton, MA, Hospitality Properties Trust (NYSE: HPT) announced it has priced a public offering of eight million common shares at $17.25 per share. The settlement of this sale is expected to occur Aug. 14, 2009.

HPT expects to use the net proceeds to repay debt and for general business purposes. The underwriters have been granted a 30-day option to purchase up to an additional 1,200,000 shares to cover over allotments, if any. The offering size was increased from the previously announced five-million-share offering.

The joint book-running managers are Morgan Stanley, Citi and RBC Capital Markets. The co-lead managers for this offering are Morgan Keegan & Co., Inc., UBS Investment Bank and Wells Fargo Securities. The co-managers for this offering are Janney Montgomery Scott and Oppenheimer & Co.

HFF Arranges $72M Financing of London Properties for TJAC International

In Boston, MA, Holliday Fenoglio Fowler, L.P. arranged $72 million in financing for TJAC International on two multifamily properties in London, England.

Working on behalf of the borrower, HFF director Anthony Cutone placed the loan through CTL Capital, LLC.

Proceeds are being used to acquire and renovate the properties for residential use. Andrew Mann, a managing partner at The Triad Group, represented the buyer, TJAC International, in the sale.

The two properties are located in the Bloomsbury area of central London close to two London Underground stations and numerous hospitals and academic institutions. Byron Court, located at 24-36 Mecklenburgh Square, is a five-story 53-unit building and 74-76 Guilford Street will have 19 residential flats post renovation.

Brookfield Properties Prices $900M Common Share Offering

NEW YORK, NY (Business Wire)--Brookfield Properties Corporation (BPO: NYSE, TSX) today announced that it has entered into agreements for the sale of 95 million of its common shares at a price of $9.50 per share.

Pursuant to an underwriting agreement with a syndicate of underwriters comprised of RBC Capital Markets, Citi, Deutsche Bank Securities and TD Securities acting as joint book-running managers, the underwriters have agreed to purchase 47.5 million common shares of Brookfield Properties at a price of $9.50 per share.

Concurrently, Brookfield Asset Management Inc. (BAM: NYSE, TSX) has agreed to purchase, directly or indirectly, 47.5 million common shares of Brookfield Properties at a price of $9.50 per share.

The gross proceeds to Brookfield Properties from the combined share issuances are expected to total $902.5 million. Closing is expected to occur on or about August 21, 2009.

Brookfield Properties has agreed to grant the underwriters an over-allotment option, exercisable at any time until 30 days following the closing of the offering, in whole or in part, to purchase up to an additional 7.125 million shares at a price of $9.50 per share.

If the over-allotment option is exercised, Brookfield Asset Management has agreed to purchase, directly or indirectly, the same number of shares on a pro rata basis, up to 7.125 million shares, based on the number of the over-allotment shares purchased by the underwriters.

If the entire over-allotment option is exercised, the gross proceeds to Brookfield Properties are expected to total approximately $1 billion.

Following the offering, Brookfield Asset Management will continue to own, directly and indirectly, an approximate 51% voting interest in Brookfield Properties.

The proceeds from this offering will be used for general corporate purposes, including without limitation, the refinancing of indebtedness and investment purposes.

A written prospectus relating to the offering may be obtained from RBC Capital Markets in Canada, Attention: Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5V 2X4 (fax: 416-313-6066); or in the U.S. from RBC Capital Markets Corporation, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th Floor, New York, NY 10281-8098 (fax: 212-428-6260).

The form F-10 registration statement relating to the common shares has not yet become effective. The common shares to be issued under this offering may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective.

Similarly, these common shares may not be sold in Canada until a receipt for a final prospectus is obtained. This news release shall not constitute an offer to sell or the solicitation for an offer to buy, nor shall there be any sale of the common shares in any state, province, territory or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, province, territory or jurisdiction.

Brookfield Properties owns, develops and manages premier office properties.

Its current portfolio is comprised of interests in 108 properties totaling 75 million square feet in the downtown cores of New York, Boston, Washington, D.C., Los Angeles, Houston, Toronto, Calgary and Ottawa, making it one of the largest owners of commercial real estate in North America.

Landmark assets include the World Financial Center in Manhattan, Brookfield Place in Toronto, Bank of America Plaza in Los Angeles and Bankers Hall in Calgary. The company’s common shares trade on the NYSE and TSX under the symbol BPO.

Contact: Melissa Coley, Vice President, Investor Relations and Communications, Tel: 212.417.7215. Email: melissa.coley@brookfieldproperties.com