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Press release from Business Wire

BPO Properties Proposes Increase to Monthly Distributions If Pending REIT Conversion is Completed

Tuesday, April 13, 2010

BPO Properties Proposes Increase to Monthly Distributions If Pending REIT Conversion is Completed17:06 EDT Tuesday, April 13, 2010 TORONTO (Business Wire) -- BPO Properties Ltd. (TSX: BPP) today announced its plans to increase the monthly distribution it will pay out to unitholders upon closing of the company's previously announced proposal to create Canada's pre-eminent office real estate investment trust (REIT), to be named Brookfield Office Properties Canada (pending stock symbol: BCR). Closing is conditional on a favourable vote from shareholders at a meeting scheduled for April 27, 2010. Under the revised proposal, the monthly distribution would be increased to $0.08 per unit, or $0.96 per unit on an annualized basis. This annual payout to BCR unitholders would be more than double BPP's existing annual payout of $0.40 per share. It had previously been announced that BCR's monthly distributions commencing on closing of the transaction would be $0.07 per unit, or $0.84 per unit on an annualized basis. An information circular describing the transaction in further detail was recently mailed to BPP shareholders and is currently available for viewing and download on BPP's website: www.bpoproperties.com. The meeting of shareholders to consider the transaction will take place on April 27, 2010 at 11:00 a.m. at The Hockey Hall of Fame, 30 Yonge St., Toronto. If shareholders approve the transaction at the meeting, and the requisite court approval is obtained, it is anticipated that the transaction will be completed on or about April 30, 2010. RiskMetrics Group, a leading independent proxy advisory firm, has published a report in favour of the REIT reorganization, citing the increased unitholder distribution, high level of voting support and absence of governance concerns. How to Vote Shareholders are encouraged to submit their vote now, and in any event, prior to the April 23, 2010 proxy vote deadline. Shareholders who have questions or require assistance voting their shares should contact the company's proxy solicitor, Laurel Hill Advisory Group, toll-free at 1-866-836-9722. Forward-Looking Statements This press release contains forward-looking statements and information within the meaning of applicable securities legislation, including statements about BPP's beliefs and expectations relating to the proposed transaction, benefits that are expected to be realized as a result of the transaction and anticipated distributions in 2010. There can be no assurance that the proposed transaction will be consummated or that the anticipated benefits will be realized. The proposed transaction is subject to various approvals and consents and there can be no assurance that any such approvals or consents will be obtained. In addition, distributions to unitholders of BCR are at the discretion of the trustees and are subject to change. Although BPP believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Accordingly, the company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements and information include but are not limited to, general economic conditions; local real estate conditions; timely leasing of newly-developed properties and re-leasing of occupied square footage upon expiration; dependence on tenants' financial condition; the uncertainties of real estate development and acquisition activity; the ability to effectively integrate acquisitions; interest rates; availability of equity and debt financing; the impact of newly-adopted accounting principles on accounting policies and on period-to-period comparisons of financial results, including changes in accounting policies to be adopted under International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS); and other risks and factors described from time to time in the documents filed by the company with securities regulators in Canada, including in the Annual Information Form under the heading “BPO Properties – Company and Real Estate Industry Risks” and in the company's annual report under the heading “Management's Discussion and Analysis.” The company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law. BPO Properties Profile BPO Properties Ltd., 90% owned by Brookfield Properties Corporation, is a Canadian company that invests in real estate, focusing on the ownership and value enhancement of premier office properties. The current property portfolio is comprised of interests in commercial properties totaling 18.3 million square feet. BPP's common shares trade on the TSX under the symbol BPP. For more information, visit www.bpoproperties.com. Contact Investor relations and media inquiries should be directed to Melissa Coley, Vice President, Investor Relations and Communications at (416) 359-8593. Inquiries regarding financial results should be directed to Bryan Davis, Senior Vice President and Chief Financial Officer, at (416) 359-8612.