Brookfield Enters Agreement To Acquire 51% Interest In Three World Financial Center In Lower Manhattan

Business Wire, Sept 9, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 9, 2002

Brookfield Properties Corporation (NYSE:BPO) (TSX:BPO) today announced that it has acquired Lehman Brothers' 51% interest in Three World Financial Center in Lower Manhattan for $158 million.

The 52-story, 2.1 million square foot tower is home to the world headquarters of co-owner American Express and is one of four towers in the World Financial Center complex. Brookfield also owns 100% of Towers One and Two and 51% of Tower Four of the World Financial Center, comprised of eight million square feet in Battery Park City located on the Hudson River.

"The addition of 1.1 million square feet of currently vacant space to Brookfield's eight million square foot portfolio of premier office properties in downtown New York City underscores our strong commitment to Lower Manhattan, allows us to play a major role in its redevelopment, and positions us to capitalize on the rental rate differential between Midtown and Lower Manhattan," commented Ric Clark, President and CEO of Brookfield. Lehman Brothers Global Real Estate Group acted as financial advisor to the seller in this transaction.

Brookfield Properties Corporation, with a stock market value of US$9 billion in assets, owns, develops and manages premier North American office properties. The Brookfield portfolio includes 50 commercial properties and development sites totaling 44 million square feet and over 120 million square feet of space under management. 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.