FORM 20-F/A Brookfield Property Partners L.P. - Brookfield Asset ...

initial pay-out ratio of approximately 80% of FFO and are initially pursuing a distribution growthrate target in the range of 3% to 5% annually. However, there can be no assurance that we will beable to make distributions in such amounts or meet our target growth rate. Our ability to makedistributions will depend on several factors, some of which are out of our control, including, amongother things, general economic conditions, our results of operations and financial condition, theamount of cash that is generated by our operations and investments, restrictions imposed by theterms of any indebtedness that is incurred to finance our operations and investments or to fundliquidity needs, levels of operating and other expenses, and contingent liabilities.• Brookfield’s Flagship Commercial Property Entity. We will be the primary entity through whichBrookfield Asset Management owns and operates its commercial property businesses on a globalbasis. As such, Brookfield Asset Management has agreed to offer us the opportunity to take-upBrookfield’s share in any investment in commercial property that is suitable for us. We have accessto Brookfield’s private investments through our right to take up Brookfield’s share in them,including investments in opportunistic, real estate finance and property operations in selectemerging markets. Our goal is to have a significant influence or a majority controlling interest ineach of these investments.• Capitalization and Growth. Our significant market capitalization and planned listings on the NYSEand the TSX will provide us with an attractive currency to source and execute large-scaletransactions, typically as the lead investor, across a wide spectrum of real estate sectors andgeographies. We will also seek opportunities to grow our portfolio by re-allocating capital fromstabilized investments to more accretive opportunities where appropriate risk-adjusted returns canbe earned.Development of our BusinessBrookfield and its predecessor companies have been active in various facets of the real estate businesssince the 1920s. Canadian Arena Corporation, the predecessor company to Brookfield Office Properties, built theMontreal Forum in 1924 to provide facilities for hockey and other sporting and cultural events and its earningswere derived principally from the ownership of the Montreal Forum and the Montreal Canadiens of the NationalHockey League until the sale of the hockey franchise in 1978.In 1976, Brookfield expanded its real estate interests by acquiring a controlling interest in one ofCanada’s largest public real estate companies. The steady escalation in commercial property values over the nextten years provided the capital base to expand. Brookfield took advantage of falling real estate values during therecession of the early 1990s to upgrade and expand its directly owned commercial property portfolio. In 2003,Brookfield made its first investments outside of North America by making property investments in the UnitedKingdom. Brookfield further expanded outside of North America in 2007 by making property investments inAustralia.The accumulation of our current portfolio of assets was completed through various corporate and propertypurchases, including the following acquisitions:• BCE Developments – 7 million square feet: In 1990, Brookfield acquired a 50% interest in aportfolio of office properties in Toronto, Denver and Minneapolis from BCE Developments. In1994, this interest was increased to 100%. Brookfield Place, Brookfield’s flagship office complexin Toronto, was acquired in this transaction.• Olympia & York U.S.A. – 14.7 million square feet: In 1996, Brookfield acquired a 46% interest inWorld Financial Properties LP, the corporation formed from the bankruptcy of Olympia & York,which included three of the four towers of the World Financial Center, One Liberty Plaza and 245Park Avenue in Manhattan. Brookfield subsequently increased its interest to 99.4%.42