Brookfield Asset Management Announces Date for Spin-Off of Brookfield Property Partners

Fri Mar 15, 2013 4:20pm EDT

* Reuters is not responsible for the content in this press release.

  TORONTO, ONTARIO, Mar 15 (MARKET WIRE) --
Brookfield Asset Management Inc. ("Brookfield")
(TSX:BAM.A)(NYSE:BAM)(EURONEXT:BAMA) today announced that it will
distribute to the holders of its Class A and B limited voting shares an
interest in its commercial property operations through a special dividend
of units of a newly created company named Brookfield Property Partners
L.P. ("BPY"). BPY has received conditional approval to list its units on
The New York Stock Exchange (the "NYSE") and the Toronto Stock Exchange
(the "TSX").

    Brookfield will effect the distribution by way of a special dividend of
units of BPY, payable on April 15, 2013 to shareholders of record as of
March 26, 2013. On the distribution date, each shareholder will receive
one BPY unit for approximately every 17.42 shares of Brookfield (that is,
0.0574 BPY units for each Brookfield share). The dividend is currently
estimated to be valued at approximately $1.45 per Brookfield Class A or B
share, or approximately $900 million in the aggregate, based on December
31, 2012 International Financial Reporting Standards values. 

    Shareholders will receive a cash payment in lieu of any fractional
interests in the BPY units. Brookfield will use the volume-weighted
average of the trading price of the BPY units for the five trading days
immediately following the spin-off to determine the value of the BPY
units for the purpose of calculating the cash payable in lieu of any
fractional interests. 

    Immediately following the distribution, BPY will effectively be owned
approximately 7.5% by the shareholders of Brookfield and approximately
92.5% by Brookfield assuming the exchange of Brookfield's redeemable
partnership units which it holds in an affiliate of BPY. 

    BPY will be Brookfield's flagship commercial property company and the
primary entity through which Brookfield will carry on its commercial
property operations on a global basis. BPY's goal is to be the leading
global investor in best in class commercial property assets. 

    BPY will own substantially all of Brookfield's commercial property
operations, including its office, retail, multi-family and industrial
assets. BPY's portfolio will include interests in over 300 office and
retail properties encompassing more than 250 million square feet. In
addition, BPY will have interests in approximately 12,200 multi-family
units, 7 million square feet of industrial space and an 18 million square
foot office development pipeline.  

    BPY's distribution policy is to target an initial pay-out ratio of
approximately 80% of its funds from operations and is initially pursuing
a distribution growth rate in the range of 3% to 5% annually. It is
expected that BPY's distribution will be paid quarterly starting on June
28, 2013 and is anticipated to be $1.00 per unit annually (or $0.25 per
unit on a quarterly basis), subject to board approval, with the first
quarterly distribution pro-rated for the period between April 15, 2013
and the record date for the distribution. 

    "Brookfield Property Partners will be one of the world's largest
publicly-traded property companies, well-positioned for those seeking to
invest in diversified high-quality real estate on a global scale," stated
Ric Clark, Senior Managing Partner of Brookfield and Chief Executive
Officer of Brookfield's global property group. "Brookfield's long history
of owning, operating, and developing properties across multiple
geographies provides BPY with a strong pipeline of deal flow, market and
asset-specific underwriting expertise, and the ability to add value at
the asset level." 

    "This distribution is the next stage of our alternative asset management
strategy and creates one of the largest global property companies, with
the size and scale needed to compete for the largest transactions in the
world," stated Bruce Flatt, Chief Executive Officer of Brookfield. "We
intend to use this entity to build our commercial property businesses
into an even stronger franchise globally, as we have done with Brookfield
Infrastructure Partners and Brookfield Renewable Energy Partners." 

    Brookfield Property Partners represents the third pillar of the strategy
to consolidate Brookfield's major business units into public market
affiliates with appeal to investors looking for both solid income and
steady growth. Brookfield Infrastructure Partners was spun out to
Brookfield shareholders in 2008 as a special dividend and has produced an
annual total return of approximately 35% over the past three years.
Brookfield Renewable Energy Partners was created in 2011 and has produced
an annual total return of approximately 25%. 

    Further details regarding the operations of Brookfield Property Partners
are set forth in regulatory filings. A copy of the filings may be
obtained through the website of the SEC at www.sec.gov and on BPY's SEDAR
profile at www.sedar.com. 

    Further information regarding "when-issued" and "due bill" trading 

    The NYSE and the TSX have determined to implement "due bill" trading for
the distribution. 

    Brookfield expects units of BPY and shares of Brookfield ex-distribution
(without the rights to receive BPY units in the spin-off) to begin
trading on a "when-issued" basis on March 22, 2013 on the NYSE under the
symbols "BPY WI" and "BAM WI," respectively, and on the TSX under the
symbols "BPY.UN" and "BAM.W", respectively. Brookfield will continue to
trade "regular-way" on the NYSE and the TSX under the symbols "BAM" and
"BAM.A", respectively. Any holders of "BAM" or "BAM.A" shares who sell
their shares "regular-way" from March 22, 2013 until April 12, 2013 (when
ex-distribution trading terminates) will also sell their entitlement to
the units of BPY that will be distributed in the spin-off. 

    BPY is expected to begin "regular-way" trading on the NYSE and the TSX on
April 15, 2013, under the symbols "BPY" and "BPY.UN" respectively.  

    Brookfield Asset Management Inc. is a global alternative asset manager
with over $175 billion in assets under management. The company has over a
100-year history of owning and operating assets with a focus on property,
renewable power, infrastructure and private equity. Brookfield has a
range of public and private investment products and services, which
leverage its expertise and experience and provide it with a competitive
advantage in the markets where it operates. Brookfield is co-listed on
the New York and Toronto stock exchanges under the symbol BAM and BAM.A,
respectively, and on NYSE Euronext under the symbol BAMA. For more
information, please visit our website at www.brookfield.com.

    For more information, please visit our web site at www.brookfield.com.

    Note: This news release contains forward-looking information within the
meaning of Canadian provincial securities laws and "forward-looking
statements" within the meaning of Section 27A of the U.S. Securities Act
of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of
1934, as amended, "safe harbour" provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable Canadian
securities regulations. The words "continue," "expect," "intend,"
"believe," derivations thereof and other expressions, including
conditional verbs such as "may," "will," "could," "would," and "should,"
are predictions of or indicate future events, trends or prospects or
identify forward-looking statements. Forward-looking statements in this
news release include statements with respect to: the launch of Brookfield
Property Partners L.P. and our expectations for this entity; the
anticipated benefits of the spin-off; and other statements with respect
to our beliefs, outlooks, plans, expectations and intentions. Although
Brookfield Asset Management believes that BPY's anticipated future
results, performance or achievements expressed or implied by the
forward-looking statements and information are based upon reasonable
assumptions and expectations, the reader should not place undue reliance
on forward-looking statements and information as such statements and
information 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 and information.

    Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include: economic
and financial conditions in the countries in which we do business; the
behaviour of financial markets, including fluctuations in interest and
exchange rates; availability of equity and debt financing; strategic
actions including dispositions; the ability to complete and effectively
integrate acquisitions into existing operations and the ability to attain
expected benefits; regulatory and political factors within the countries
in which the company operates; availability of new tenants to fill
property vacancies; tenant bankruptcies; acts of God, such as earthquakes
and hurricanes; the possible impact of international conflicts and other
developments including terrorist acts; changes in accounting policies to
be adopted under IFRS; and other risks and factors detailed from time to
time in BPY's Form 20-F filed with the Securities and Exchange Commission
as well as other documents filed by BPY with the securities regulators in
Canada and the United States. 

    We caution that the foregoing factors that may affect future results are
not exhaustive. When relying on our forward-looking statements to make
decisions with respect to Brookfield Asset Management, investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law, the
company undertakes no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral, as a
result of new information, future events or otherwise.

Contacts:
Media: Brookfield Asset Management Inc.
Andrew Willis
SVP, Communications & Media
(416) 369-8236
(416) 363-2856 (FAX)
andrew.willis@brookfield.com

Investors: Brookfield Asset Management Inc.
Katherine Vyse
SVP, Investor Relations
(416) 369-8246
(416) 363-2856 (FAX)
katherine.vyse@brookfield.com
www.brookfield.com

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