Brookfield Real Estate Services Fund Completes $53 Million Debt Refinancing

TORONTO, Feb. 18 /CNW/ - Brookfield Real Estate Services Fund (The "Fund", TSX: BRE.UN) today announced the completion of the refinancing of its $53 million debt obligations. The refinancing is comprised of a $32.7 million private debt placement with a number of Canadian institutional investors with interest fixed 5.809% and a $20.3 million bank facility with interest available in the form of floating prime rate, or at Banker's Acceptance rates plus 3% with terms of up to six months. The refinancing is provided under a five-year term, maturing on February 17, 2015, with interest payable quarterly in arrears.

"We are extremely pleased with the completion of the refinancing and the high level of confidence in our business demonstrated by our lenders. Fixing a portion of our debt at an attractive rate of interest and a portion at floating rates will allow us flexibility to benefit from the current low interest rate environment while at the same time providing a reliable low cost of funds through maturity," commented Philip Soper, President and Chief Executive.

A Canadian investment bank acted as sole agent for the private placement.

About the Brookfield Real Estate Services Fund

The Fund is a leading provider of services to residential real estate REALTORS(R)(1). The Fund generates cash flow from franchise royalties and service fees derived from a national network of real estate brokers and agents in Canada operating under the Royal LePage, La Capitale Real Estate Network and Johnston & Daniel brand names. At October 31, 2009, the Fund Network was comprised of 14,620 REALTORS(R). The Fund Network has an approximate 22% share of the Canadian residential resale real estate 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

    
    (1) REALTOR(R) is a trademark identifying real estate licensees in Canada
        who are members of the Canadian Real Estate Association
    

Forward-Looking Statements

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" 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 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 a change in general economic conditions, interest rates, consumer confidence, the level of residential 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 offices, other developments in the residential real estate brokerage industry or the Fund that reduce the number of and/or royalty revenue from the Fund's REALTORS(R), 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 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.

SOURCE BROOKFIELD REAL ESTATE SERVICES FUND

For further information: For further information: Gurinder Sandhu, Vice President Finance, Brookfield Real Estate Services Limited, (416) 510-5701, gsandhu@brookfieldres.com, www.brookfieldres.com

Organization Profile

BROOKFIELD REAL ESTATE SERVICES FUND

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