Brascan Real Estate Opportunity Fund

Brascan Real Estate Opportunity Fund

March 07, 2005 11:13 ET

Brascan Real Estate Opportunity Fund Expands with Investment in Washington Office Portfolio


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BRASCAN REAL ESTATE OPPORTUNITY FUND

MARCH 7, 2005 - 11:13 ET

Brascan Real Estate Opportunity Fund Expands with
Investment in Washington Office Portfolio

TORONTO, ONTARIO--(CCNMatthews - March 7, 2005) - The Brascan Real
Estate Opportunity Fund, today announced that it has signed a binding
agreement to acquire a 900,000 square foot office property portfolio in
Washington, D.C., which includes three downtown office properties and
three suburban office/flex properties. The transaction is expected to
close April, 2005.

Established in 2004, the Brascan Real Estate Opportunity Fund (BREOF) is
an alternative investment fund focused on investing opportunistically in
real estate properties in North America. Since inception, BREOF acquired
US$300 million of properties, which includes, in addition to the
Washington, D.C. portfolio:

- Toronto - A land lease with a government agency on a prime midtown 4.3
acre site comprised of 650,000 square feet in four office towers and a
285 car-parking garage with a partner.

- Indianapolis - Castleton Business Park, a 35 building, 1,100,000
square foot office and office/flex business park.

- Fort Worth - 644-bed student housing project on Texas Christian
University campus in Fort Worth representing the first of three
development projects with a joint venture partner.

"The acquisition of the Washington portfolio furthers the Fund's
strategy of investing opportunistically in North American real estate
which leverages Brascan's real estate operating platform and expertise
in acquiring and repositioning commercial real estate to create value
and superior returns", commented David Arthur, Managing Partner, BREOF.
"In addition", added Arthur, "institutional investors increasingly
recognize real estate of the quality we have accumulated in the Fund, as
a very attractive alternative asset class and we have received
considerable interest from prospective partners to participate in the
Fund with us. The addition of the Washington portfolio provides the
critical mass to actively market the Fund to institutional investors
seeking to diversify their portfolios."

BREOF, with a target fund size of $1 billion, continues to evaluate
opportunities to acquire and reposition undervalued real estate through
active management, leasing and refinancing to create long term,
sustainable streams of cash flow. According to Arthur, the Fund seeks
investments in major North American markets, in which Brascan has a
access to superior market knowledge, or secondary markets with the
appropriate risk profile.

Brascan Real Estate Opportunity Fund invests in underperforming real
estate in North America, including commercial real estate properties in
major North American markets, including office, industrial and mixed-use
office/retail/industrial properties as well as opportunistic investments
in multifamily properties. For more information on the Fund, please
visit Brascan's Asset Management website at:
www.brascanam.com/Alternative/realestate_opportunity.htm

Note: This press release may contain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. The
words "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 company 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 general economic conditions, interest rates,
availability of equity and debt financing and other risks detailed from
time to time in the company's 40-F filed with the Securities and
Exchange Commission. The company 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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Brascan Corporation
    Katherine C. Vyse
    SVP, Investor Relations and Communications
    (416) 369-8246
    kvyse@brascancorp.com