Brookfield Real Estate Service Inc. closes $68 million financing

TORONTO, Oct. 27, 2014 Brookfield Real Estate Services Inc. (the "Company") (TSX – BRE), today announced the closing of a five-year $68 million financing with CIBC Business Banking, comprising the following three arrangements:

• A $53 million non-revolving term fixed rate facility, replacing the current $53 million term facility which was to mature on February 17, 2015. The new facility bears a variable interest rate of Banker's Acceptances (BAs) +1.70% or Prime + 0.5%, which the company has swapped to a fixed rate of 3.64%, payable monthly.
• A $10 million non-revolving acquisition facility to support acquisitions pursued by the Company, bearing a variable interest rate of BAs +1.70% or Prime + 0.5%. A standby fee of 0.15% applies on undrawn amounts under this facility.
• A $5 million revolving  operating facility to meet the Company's day-to-day  operating requirements,  bearing a variable interest rate of BAs +1.70% or Prime + 0.5%

"We are extremely pleased with the completion of this financing and the high level of confidence that our partners at CIBC Business Banking have shown in our business. Fixing our debt at an attractive fixed interest rate provides our Company with a low cost of funds through maturity, while the addition of the $10 million acquisition line provides additional capacity to fund our growth initiatives," said Phil Soper, President and Chief Executive, Brookfield Real Estate Services Inc.

Brookfield Real Estate Services Inc. Profile
The Company is a leading provider of services to residential real estate brokers and their REALTORS®. The Company 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, Via Capitale Real Estate Network and Johnston & Daniel brand names. At June 30, 2014, the Company network consisted of 15,697 REALTORS®. The Company network has approximately one fifth share of the Canadian residential resale real estate market based on 2013 transactional dollar volume. The Company generates both fixed and variable fee components. Variable fees are primarily driven by the total transactional dollar volume from the sales commissions of REALTORS®, while fixed fees are based on the number of agents and sales representatives in the network. Approximately 71% of the Company's revenue is based on fees that are fixed in nature; this provides revenue stability and helps insulate the Company's cash flows from market fluctuations. The Company is listed on the TSX and trades under the symbol "BRE". For further information about the Company, please visit www.brookfieldresinc.com.

SOURCE: Brookfield Real Estate Services Inc.

Tammy Gilmer, Director, Public Relations and National Communications, Brookfield Real Estate Services Inc., 416.510.5783, [email protected]