Brookfield Real Estate Services Fund
TSX : BRE.UN

Brookfield Real Estate Services Fund

November 05, 2007 09:00 ET

Brookfield Real Estate Services (TSX BRE.UN) Announces the Acquisition of La Capitale Real Estate Network

La Capitale to operate as an independent franchise system

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2007) - Brookfield Real Estate Services Limited (the Manager), the management company of the Brookfield Real Estate Services Fund (TSX:BRE.UN) (the Fund) announced that it has successfully acquired Quebec-based La Capitale Real Estate Network / Le Reseau immobilier La Capitale (La Capitale), Quebec's fourth largest real estate franchise services company with 68 locations serviced by 1,492 agents. Brookfield will operate the La Capitale brand independently to preserve its successful brand and passionate community of REALTORS®.

"The acquisition of La Capitale aligns with our long-term growth strategy to purchase high-quality real estate franchise systems in markets where we have identified opportunity for long-term growth," said Phil Soper, president and chief executive, Brookfield Real Estate Services. "With this acquisition, the Brookfield Real Estate Services family will include close to 15,000 REALTORS® nationally and 3,400 in Quebec."

La Capitale's successful business system and unique capabilities will remain intact. The company will form the basis of a new independent business unit within Brookfield Real Estate Services. Paul Legault, will continue to act as president and chief executive officer of La Capitale Real Estate Network. There are no current plans to change senior management at La Capitale or to eliminate positions, as a result of this transaction.

Added Soper: "La Capitale's commitment to providing exceptional client service, and a history of introducing innovative new products to the industry, are the basis for the company's strong reputation. Its record of growth makes it an attractive addition to the Manager's portfolio."

"La Capitale is excited about becoming part of the Brookfield family. They have the leadership, experience, and resources to help us grow. It was very important that La Capitale remain an independent company. From the beginning, Brookfield has wanted us to remain an autonomous unit and to retain our leadership team," said Paul Legault, president and chief executive officer, La Capitale Real Estate Network. "We have established a strong and growing position in the Quebec real estate market because of our avant-garde philosophy - one that puts the client first in everything we do. We look forward to continuing to achieve strong growth as an independent entity within Brookfield Real Estate Services."

With the acquisition of La Capitale, Brookfield Real Estate Services will be comprised of La Capitale, a large, successful company operating independently in Quebec, and Royal LePage Real Estate Services, Canada's largest national real estate company. Both Royal LePage and La Capitale will continue to operate in Quebec as independent companies once the acquisition is complete.

Pursuant to the Management Services Agreement, the Fund intends to acquire the franchise agreements from the Manager in early January 2008, pending approval from the Fund's Board of Trustees.

Conference Call

A conference call for investors, analysts and media to discuss the acquisition of La Capitale will be held on November 5, 2007 at 11:00 a.m. (Eastern Time). To participate in the conference call, please dial toll free (1-866-296-6505) a few minutes prior to the call. The pass code for this call is (53439). For those unable to participate in the conference call, it will be available by webcast, and a replay will also be posted online following the conference call at www.brookfieldres.com.

About Brookfield Real Estate Services Fund

The Fund is a leading provider of services to residential real estate brokers and their REALTORS®. The Fund generates cash flow from franchise royalties and service fees derived from a national network of real estate brokers and agents in Canada operating under the Royal LePage and Johnston & Daniel brand names. At June 30, 2007, the Fund Network was comprised of 12,960 REALTORS® operating from 594 locations. The Fund Network has an approximate 20 per cent share of the Canadian residential resale real estate market based on transactional dollar volume. The Fund is a TSX listed income trust (BRE.UN) that pays monthly distributions. The Fund's website address is www.brookfieldres.com.

Forward-Looking Statements

This quarterly news release contains forward-looking information and other "forward-looking statements". The words such as "should", "will", "continue", "plan", "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Fund to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include a change in general economic conditions, interest rates, consumer confidence, the level of residential resale transactions, the average rate of commissions charged, competition from other traditional real estate brokers or from discount and/or internet-based real estate alternatives, the availability of acquisition opportunities and/or the closing of existing real estate offices, other developments in the residential real estate brokerage industry or the Fund that reduce the number of and/or royalty revenue from the Fund's REALTORS®, our ability to maintain brand equity through the use of trademarks, the availability of equity and debt financing, a change in tax provisions, and other risks detailed in the Fund's annual information form which is filed with securities commissions and posted on SEDAR at www.sedar.com. The Fund undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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