Under the terms of the joint venture agreement, a company to be jointly owned by Brookfield Properties and Blackstone will acquire 100% of the outstanding common shares of Trizec Properties at $29.01 per share. Brookfield Properties will acquire 100% of the outstanding shares of Trizec Canada at $30.97 per share. The additional $1.96 per share consideration for Trizec Canada reflects the value of Trizec Canada's net assets beyond its approximately 38% interest in Trizec Properties.

The Trizec portfolio consists of 61 office properties totaling 36 million sf in nine US markets. In a move that will fit strategically in its geographic niche, Brookfield Properties will manage and operate 18.5 million sf in New York, Washington, DC, Downtown Los Angeles and Houston. Blackstone in turn will manage and operate 5.4 million sf in West Los Angeles, San Diego and some of the New York City properties. Prior to the closing of the acquisition, which is expected in the fourth quarter of 2006, Blackstone will acquire 12.1 million sf in Atlanta, Dallas, West Los Angeles, San Diego, Chicago, Charlotte and Minneapolis.

Tim Callahan, Trizec Properties' president and chief executive officer, says in a statement that the transaction "accomplishes Trizec's ultimate objective as a public company, which is to maximize stockholder value." Pleased with the "significant accomplishments" the company has made over the years, Callahan says that his only regret is "once this transaction closes, I will not have the opportunity to be part of the organization as it continues to evolve."