Brookfield Real Estate Services Inc. Announces New Management Services Agreement

Brookfield Real Estate Services Inc. Announces New Management Services 
TORONTO, June 28, 2013 /CNW/ - Brookfield Real Estate Services Inc. (the 
Company) (TSX: BRE), a leading provider of services to residential real estate 
brokers and their REALTORS®¹, today announced that it will be continuing its 
relationship with Brookfield Real Estate Services Manager Limited (the 
Manager), a subsidiary of Brookfield Asset Management Inc. (Brookfield) under 
an amended and restated Management Services Agreement effective January 1, 
2014 (MSA). The agreement provides new growth opportunities for the Company 
and enhances the value of Canada's premier real estate services brands, 
including Royal LePage, Johnston & Daniel and Via Capitale Real Estate Network. 
"The changes to the agreement all provide significant benefit to 
shareholders," said Spencer Enright, President and Chief Executive Officer of 
Brookfield Real Estate Services Manager Limited. "With the new MSA in place, 
we will see a close alignment of the Manager and Company goals, reduced 
management fees, a new incentive arrangement emphasising organic agent growth, 
and the ability to grow market share while safeguarding the existing return on 
While the majority of the provisions under the MSA remain intact from the 
existing agreement, management fees have been streamlined to 20% across all 
branded franchise networks and the existing Royal LePage formula used to 
calculate the value of incremental franchises assigned by the Manager has now 
been adopted across all branded franchises. Additionally, the MSA provides for 
an incentive fee to the Manager based on organic growth within the franchise 
networks and provides the Manager the ability to sell other Canadian branded 
franchises to the Company in addition to Royal LePage and Via Capitale. The 
initial term of the MSA is five years, with a provision for automatic renewal 
of successive five year terms. 
Since 2003, the Company has been managed pursuant to a ten-year agreement with 
the Manager. This agreement had recently been extended to December 31, 2013, 
allowing a Special Committee of the Board of Directors of the Company along 
with external advisors to conduct a thorough review and assessment of 
alternatives in advance the expiry of the term of the current agreement. 
Entering into the MSA with the Manager was determined to be the best possible 
option at this time, as it builds upon the strong existing relationship 
between the Company and Brookfield and maintains consistency in a vital part 
of the infrastructure to the Company. 
Brookfield Real Estate Services Inc. Profile
The Company is a leading provider of services to residential real estate 
brokers and their REALTORS(®¹). 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 March 31, 
2013, the Company network consisted of 15,558 REALTORS(®). The Company 
network has an approximate 24% share of the Canadian residential resale real 
estate market based on 2012 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 73% 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 
(1) REALTOR® is a trademark identifying real estate licensees in Canada who 
are members of the Canadian Real Estate Association. 
Tammy Gilmer Director, Public Relations & National Communications Brookfield 
Real Estate Services Inc. Tel: 416.510.5783 
SOURCE: Brookfield Real Estate Services Inc. 
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CO: Brookfield Real Estate Services Inc.
ST: Ontario
-0- Jun/28/2013 20:22 GMT
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