Brookfield Real Estate Services Inc. Announces The Completion Of The Conversion Of Brookfield Real Estate Services Fund To A Corporation
Toronto, ON – December 31, 2010 – Brookfield Real Estate Services Inc. (the “Corporation”) (TSX: BRE) is pleased to announce the completion of the conversion of Brookfield Real Estate Services Fund (the “Fund”) to a corporation named Brookfield Real Estate Services Inc., pursuant to a plan of arrangement (the “Arrangement”) under the Business Corporation Act (Ontario).
Effective on the closing of the Arrangement and related transactions, the Corporation now directly owns the Fund and its subsidiaries which own and operate the businesses of Residential Income Fund L.P. and La Capitale L.P., which own the assets from which the Corporation will derive its sole source of revenue. The management and trustees of the Fund are now the management and directors of the Corporation.
Pursuant to the Arrangement, unitholders of the Fund received one restricted voting share of the Corporation for each unit held on the effective date. The Corporation now has 9,483,850 restricted voting shares issued and outstanding.
Trading of the shares of the Corporation is expected to commence on or about January 5, 2011 on the Toronto Stock Exchange under the symbol “BRE”.
About Brookfield Real Estate Services Inc.
The Corporation is a leading provider of services to residential real estate brokers and their sales agents. The Corporation generates cash flow from franchise royalties and service fees derived from a national franchise network (the “Network”) of real estate brokers and sales agents in Canada operating under the Royal LePage, La Capitale Real Estate Network and Johnston & Daniel brands. At September 30, 2010, the Corporation’s Network included approximately 15,322 brokers and sales agents. The Corporation’s Network has an approximate 22% share of the Canadian residential resale real estate brokerage market based on transactional dollar volume. The Corporation is a TSX-listed company that pays monthly dividends and trades under the symbol “BRE”. The Corporation’s website address is www.brookfieldresinc.com.
This news release contains forward-looking information and other “forward-looking statements”. The words such as “should”, “will”, “continue”, “plan”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “approximate”, “expected” and other expressions that are predictions of or indicate future events and trends and that 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 that may cause the actual results, performance or achievements of the Corporation 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 real estate 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 brokerage offices, other developments in the residential real estate brokerage industry or the Corporation that reduce the number of and/or royalty revenue from the Corporation’s Network of REALTORS®1, 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 Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
1REALTOR® is a trademark identifying real estate licensees in Canada who are members of the Canadian Real Estate Association.
For more information, contact:
Chief Financial Officer
Brookfield Real Estate Services Inc.