2

Brookfield Office Properties’ Global Reach

3

Presence in United States49 million square feet of Brookfield Office Properties’ commercial property portfolio is concentrated in the most dynamic and resilient markets in the U.S.

Total area in square feet

7.2 msf12.7 msf 8.8 msf20.7 msf Energy Services & OtherFinancial Services Government Centers

7.2m Washington, DC

5.7m Los Angeles

1.8m Denver

18.4m New York

2.3m Boston

3.1m Minneapolis

10.9m Houston

4

Well-Positioned• International diversification – United States,

Canada and Australia with initial investment in the U.K.

• Quality portfolio – 109 Class A & AA properties totaling 78 million square feet

• High occupancy – 95.0%• Low annual lease rollover over next 3 years –

annual average of 5.4%

• Long average lease duration – 7.3 years

• Internal growth – average in-place net rent is 5% below current market

• Development pipeline – 15.6 million square foot development-ready pipeline

• Investment-grade financing – 94% of debt is non-recourse to Brookfield Office Properties

KPMG Tower, Sydney

5

A Global Pure-Play Office Company

• Purchased an interest in 19 premier office properties in the Australian cities of Sydney, Melbourne and Perth

• Announced divestment of the company’s residential development operations in January 2011

• In accordance with this strategic shift, the company has recently been renamed “Brookfield Office Properties”

Macquarie Group Building, Sydney

In July 2010, the company announced a strategic plan to become a global, pure-play office company

6

Investment Thesis - Australia• Current strategy of owning high quality assets in North America’s most dynamic

markets can be effectively deployed in select development economies around the world

• Expansion to Sydney, Melbourne and Perth in Australia will generate more stable and growing returns than new and existing North American markets

• The Australian economy is poised for greater growth than North American economies

• Typical Australian office lease contracts have 3% to 4% annual fixed rent step-ups• Tenant synergies can be leveraged in other gateway cities in developed countries

such as Australia

7

2011 Office Outlook in United StatesStatus• Fundamentals have bottomed in most markets and are

improving in top markets (i.e. NYC, Washington, D.C.)• Credit availability improving with a favorable interest rate

environment• Capital targeting trophy assets in top markets• Cap rate levels in select markets approaching 2007 pricing levels• Resolution process for complex capital structures coupled with

favorable monetary policy, has delayed opportunities hitting the market

• Lack of new construction and well-leased properties will help speed recovery

Opportunities• Over $500 billion of loans on over-leveraged properties are

expected to roll over the next few years as regional banks and others sort through under-collateralized loans

• Unlisted funds and investment sponsors will seek liquidity to de-lever as loans mature

New York

8

2011 Office Outlook in CanadaStatus• Occupancy in Canadian office market has remained steady,

some pressure in Calgary due to over supply issues• The Canadian “AA” real estate market is dominated by a limited

group of large pension fund owners• Quality product remains scarce• Capitalization rates continue to compress due to scarcity of

product and the health of equity and debt markets

Opportunities• Pension funds looking to divest their portfolio from Canada to

invest offshore Toronto

9

2011 Office Outlook in AustraliaStatus• Australia avoided a technical recession and is the strongest

economy of the developed countries• CBD office markets are in recovery phase, driven by growth in

economy and white-collar employment• Occupancy, rents and yields improving• Debt availability is improving, although at rates 300 bps higher

than North America

Opportunities• Post global financial crisis strategic shifts in capital allocation

(ie: retrenchment to "pure play" and "home field") augers well for investment activity

• Banks becoming motivated to sell as appetite has returned to investment markets

Sydney

10

Status• Concern over second bubble growing as rate of recovery

happened too much, too fast• Yet competition for prime assets from new market entrants (ex:

National Pension Service of Korea and Norway Pension Fund) has compressed cap rates

• £140 billion (50% of total outstanding) of UK commercial property debt is maturing before the end of 2012

Opportunities

• Banks need to shrink their exposure and will eventually have to sell. Scottish and Irish banks under the greatest pressure

• LTV breaches are endemic, but with terms stretching to 2012, holders are clinging on and seeking extensions

• Concern over a second bubble starting to be reflected in the equity and derivatives markets

London

2011 Office Outlook in United Kingdom

11

Focus

1. Active Re-deployment of Capital

2. Asset and Portfolio Acquisitions

3. Acquisition of Strategic Debt positions

4. Re-development Opportunities

5. New Development

6. Fund Raising

12

Source• Acquired as part of the U.S. Office Fund’s acquisition of

Trizec Properties

Asset Overview• A 240,000 square foot building that was developed in 1968

and is strategically situated downtown in Washington D.C.’s central business district

• At the time of acquisition, the property was occupied by Ernst & Young under a lease that expired in 2007

• Acquired a Class “C” office property at a significant discount to the replacement cost in 2006 for $400/sf

• Invested $50 million to transform a functionally obsolete Class “C” office building into a Class “A” asset

• In November 2008, Brookfield successfully negotiated a net lease for entire building with World Bank for the

property prior to completion of the redevelopment

• Sold in December 2010 for a purchase price of $216 million or $900 per square foot, a record price paid for an

office building in Washington, D.C.

• Achieved IRR of 16.3% and gross equity multiple of 1.7X

Case Study: 1225 Connecticut Ave., Washington D.C.

13

Heritage Plaza Case Study, Houston, TX

• Purchased a 1.15 million square foot trophy tower in the Skyline district of downtown Houston in December 2010 for $325 million ($282/sf)

• Building was 84% leased, providing opportunity to increase occupancy and add value

• Investment includes a 1.1 acre development site adjacent to Brookfield’s Gateway/5 Allen site, offering synergies for future development

• Economics: Contract Price: $325 million Total Equity Investment: $123 million Target Investment Multiple: 1.8X Target Levered IRR: 16.5%

14

• Brookfield Properties acquired a 100% interest in 650 Massachusetts Ave, NW in December 2010 for $113 million ($356/SF)

• Located in the burgeoning East End submarket, the asset is an eight-story office building containing approximately 317,000 rentable square feet and a four-story parking garage.

• Serves as the global headquarters of Blackboard, an educational software company.

• Currently 74% leased

• Economics: Contract Price: $113 Million Total Equity Investment: $44 Million Target LIRR: 15% - 16%

650 Massachusetts Avenue Case Study, NW , Washington, DC

15

Premier Developer• 15.6 million sq. ft. pipeline• One active development: City Square,

Perth (917,000 sf)• All new developments built to a minimum

LEED Gold or 5-Star Green Star standard• Delivered 2.2 million square feet in 2009• Low basis:

– Minimal ongoing capital expenditures required

– Will build out when market conditions improve, leasing hurdles can be met, and return expectations can be met

City Square,Perth

16

International Expansion: London, UK• In 2010, BPO acquired a 50% interest in

100 Bishopsgate, located in the City of London near Liverpool station, through a joint venture with UK-based Great Portland Estates (GPE)

• Site is approved for development of a 40-story, best-in-class office tower totaling +/- 900,000 rentable square feet

• Combining Brookfield Office Properties’ global tenant relationships and development expertise with Brookfield Asset Management’s construction platform and GPE’s local market knowledge made this a compelling opportunity

100 Bishopsgate,London