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

had an IFRS Value of approximately $380 million. As of March 31, 2012, our opportunistic investment platformrepresented approximately 6% of our total IFRS Value.Market Overview and OpportunitiesWe believe that we are well-positioned to take advantage of attractive investment conditions in the keyregions in which we have operations. We believe that the current volatility in global capital markets will providecompelling investment opportunities, as well as reinforce the benefits of our investment focus on high qualityreal estate assets with conservative financing that generate, or have the potential to generate, long-term,predictable and sustainable cash flows.Capital preservation and risk mitigation remain key tenets of our investment philosophy – in everyinvestment and in every economic environment. We believe the next few years will present some very attractiveopportunities for real estate investors as economic conditions around the world recover and capital marketsstabilize. We believe our company offers an attractive opportunity to participate in these markets by establishinga group of properties that produce significant cash flow for distribution to our unitholders and for the accretiveacquisition and development of high-quality assets.The following is an overview of the real estate industry in each of our primary markets.North AmericaSupply and demand fundamentals remain sound in core markets for core assets and we continue to seestrong investment demand for well-located, high quality assets. We believe the ability to add value throughleasing and property management of under-performing real estate assets in core markets will continue to be a keycompetitive advantage in these economic conditions.Further, we continue to see distressed situations requiring new capital and strong sponsorship, especiallyin the United States. These opportunities are coming directly from banks, private entities facing looming debtmaturities and lower asset values, the unwinding of dysfunctional partnerships, operators seeking new growthcapital, and deleveraging initiatives, among others. While the regulatory and policy approach in the United Stateshas not been as rigid as Europe’s, we believe the large upcoming debt maturity profile of the United Statesthrough 2017 and pool of distressed assets requiring recapitalization in the United States will continue to provideopportunities.EuropeSovereign debt issues are continuing to put significant pressure on macroeconomic conditions and capitalmarkets. Europe currently has the largest debt funding gap in the world, and we believe that this, combined withthe impact of austerity measures, will provide ample opportunities to acquire groups of assets in various assetclasses across Europe in the next few years. Industry sources currently estimate a €400 to €700 billion fundinggap in European real estate assets. New government regulations will force banks under government ownership todivest portions of their real estate by 2014 – 2015. We believe that this, combined with the introduction of newfund regulations, will provide further consolidation and rationalization of real estate ownership.Our European focus remains on the continent’s largest markets, including the United Kingdom, France,Germany and Spain, across various asset classes.AustraliaOur primary focus in Australia remains on the office sector, in which we already have a platform and alsosee the largest opportunities. The office market is still in the early stages of recovery, driven by growth in the56