Brookfield Real Estate Services Fund Announces Unitholder Approval of Conversion to a Corporation
Toronto, ON – December 10, 2010 – Brookfield Real Estate Services Fund (the “Fund”) (TSX: BRE.UN) is pleased to announce that at its Special Meeting of Unitholders held earlier today, unitholders and special voting unitholders approved the previously announced conversion (the “Conversion”) of the Fund to a publicly traded corporate structure. The Conversion will be effected by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (Ontario).
The completion of the Conversion remains subject to the satisfaction of other conditions precedent, including, without limitation, the final court order from the Ontario Superior Court of Justice approving the Arrangement. If the final order is received as anticipated and all other conditions are satisfied or waived as required, the Conversion will become effective on or about December 31, 2010.
On the effective date of the Conversion, each unit of the Fund will automatically be exchanged for one common share of Brookfield Real Estate Services Inc. The common shares of Brookfield Real Estate Services Inc. will be listed on the Toronto Stock Exchange (the “TSX”) and trade under the symbol “BRE”, subject to the satisfaction of customary conditions of the TSX.
About the Brookfield Real Estate Services Fund
The Fund is a leading provider of services to residential real estate brokers and their sales agents. The Fund generates cash flow from franchise royalties and service fees derived from a national 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 Fund Network included 15,322 brokers and sales agents. The Fund Network has an approximate 22% share of the Canadian residential resale real estate brokerage market based on transactional dollar volume. The Fund is a TSX-listed income trust that pays monthly distributions and trades under the symbol “BRE.UN”. The Fund’s website address is www.brookfieldres.com
This news release contains forward-looking information and other “forward-looking statements” relating to the completion of the Conversion. 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 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 the failure to receive the final court order, the failure to satisfy or obtain a waiver of the conditions to the Conversion, the failure to meet the listing conditions of the TSX a change in tax provisions, and other risks detailed in the Fund’s management information circular dated November 11, 2010, 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, except as required by law.
For more information, contact:
Chief Financial Officer
Brookfield Real Estate Services Fund