Brookfield Property Says Investing $1.4B to Raise Interest in GGP to 32%

Brookfield Property Partners L.P. (NYSE: BPY) ("Brookfield Property Partners" or "BPY") today announced that it hasagreed to acquire additional shares and warrants of General GrowthProperties, Inc. (NYSE: GGP) ("GGP") for total consideration of $1.4billion.As a result of the acquisition, Brookfield Property Partners willincrease its fully-diluted ownership interest in GGP to 32%, assumingthe exercise of all of the outstanding warrants or approximately 28%on an undiluted basis. Brookfield Property Partners will continue tohold its interest in a consortium alongside institutional investorswho, collectively with Brookfield Property Partners, will ownapproximately 40% of GGP on a fully-diluted basis."This transaction provides Brookfield Property Partners with theopportunity to increase its exposure to one of the highest qualityshopping center portfolios in the world at an attractive valuation,"said Ric Clark, Chief Executive Officer of Brookfield Property Group."As a result of this and GGP's strong organic growth prospects, webelieve that the investment will earn a return that exceeds ourtarget range of 12% to 15%. We are pleased that the transactionsuccessfully transitions our GGP investment partnership to a newphase for the benefit of Brookfield Property Partners and itsinstitutional partners."The acquisition will be funded through the issuance of $435 millionof units of Brookfield Property Partners to Investment Corporation ofDubai and other institutional investors and $995 million ofredeemable-exchangeable units of a subsidiary of Brookfield PropertyPartners to Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A)(EURONEXT: BAMA).For further details regarding the transaction, see Appendix "A" tothis release.Benefits to Brookfield Property PartnersIncreased exposure to one of the highest quality shopping centerportfolios in the worldThe additional investment in GGP increases Brookfield PropertyPartners' exposure to a premier portfolio of 123 best in class retailmalls in the United States. As a result of high quality,credit-worthy tenants in attractive markets, GGP's malls produce over$560 of sales per square foot and generate stable long-term cashflows.Enhanced organic growth profileOver the past five years, GGP has increased same-store sales by anaverage of 5% per year by improving tenant mix, rolling over leasesat market prices and increasing the occupancy of its malls.Additionally, GGP has a redevelopment pipeline of approximately $2billion, which is expected to earn 9% - 11% unleveraged returns oninvestment.Increased public floatFollowing completion of the transaction, the public float ofBrookfield Property Partners will increase by 28% ($435 million).Brookfield Property Partners previously announced its intention tomake an offer to acquire any or all of the common shares ofBrookfield Office Properties Inc. (NYSE: BPO) (TSX: BPO) that it doesnot already own. If fully successful, Brookfield Property Partners'public float could increase to over $5 billion.