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Franchise News
Date: 12/19/2017
Brookfield Real Estate Services Inc. Announces Acquisition of Franchise Agreements

TORONTO,Dec. 8, 2017/CNW/ - Brookfield Real Estate Services Inc. (the "Company") (TSX: BRE) announced today that it has approved the acquisition of certain franchise agreements from Brookfield Real Estate Services Manager Limited ("the Manager").

Acquisition of Franchise Agreements

Under the Royal LePage and Via Capitale brands, the Company will acquire franchise agreements representing 38 real estate operations and 563 REALTORS 1 acrossCanadafor approximately$8.8 million. These agreements are estimated to generate an annual royalty stream of$1.2 millionand will be effectiveJanuary 1, 2018.

As outlined in the Company's Management Services Agreement ("MSA") with the Manager, 80 per cent of the acquisition price will be paid inJanuary 2018and the balance will be paid later in the year when the purchase price is finalized, based on the actual performance of the acquired agreements.

The payment dueJanuary 1, 2018of approximately$7.0 million, plus applicable HST, will be funded through a combination of cash on hand and a draw down on the Company's debt facilities.

"We are very pleased with the strong and consistent growth of our Company's Network," saidPhil Soper, president and chief executive officer, Brookfield Real Estate Services Inc. "Ourhigh quality brandsenjoy nationwide appeal and geographicaldiversification,which has certainly helped the business successfully navigate market slumps inAlbertain 2015,British Columbiain 2016 andOntariothis year.The tools, services and support our Brands offer brokerages and REALTORS position them for success in a highly competitive industry."

Forward-Looking Statements

This news release contains forward-looking information and other "forward- looking statements". Words such as "will", "estimated", "later", "growth" and other expressions that are predictions of or could indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that 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. Factors that could cause actual results to differ materially from those indicated in the forward looking statements include: increases or decreases in the number of REALTORS prior to the acquisition date, availability of financial resources to the Company, changes in the Company's strategy, changes in the supply of houses for sale inCanadaor in any particular region withinCanada, changes in the demand for houses inCanadaor any particular region withinCanada, changes in general economic conditions (including interest rates, consumer confidence and other general economic factors or indicators), changes in global and regional economic growth, the demand for and prices of natural resources on local and international markets, the level of residential real estate transactions, the average rate of commissions charged, competition from other real estate brokers or from discount and/or Internet-based real estate alternatives, the closing of existing real estate brokerage offices, other developments in the residential real estate brokerage industry or the Company thatreduce the number of REALTORSin the Company's Network or royalty revenue from the Company's Network, our ability to maintain brand equity through the use of trademarks, changes in tax laws or regulations, and other risks detailed in the Company's annual information form, which is filed with securities commissions and posted on SEDAR atwww.sedar.com.The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Brookfield Real Estate Services Inc.

Brookfield Real Estate Services Inc. is a leading provider of services to residential real estate brokers and a network of over 18,000 REALTORS.Weoperate inCanadaunderthe Royal LePage, Via Capitale and Johnston & Daniel brands. For more information, go towww.Brookfieldresinc.com.

Brookfield Real Estate Services Inc. is an affiliate of Brookfield Asset Management, a leading global alternative asset manager with over$250 billionof assets under management. For more information, go towww.Brookfield.com. 1 REALTORS is a trademark identifying real estate licensees inCanadawho are members of the Canadian Real Estate Association. SOURCE Brookfield Real Estate Services Inc.

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