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

domestic economy and overall low unemployment rates. Supply is limited, boding well for robust rental andcapital growth over the medium term, and we believe demand fundamentals remain strong in the major markets.Banks are seeking to reduce exposure to troubled real estate assets, resulting in asset sales and alternative debtfunding opportunities are emerging as a result.Our Australian portfolio also includes assets in New Zealand, where our primary focus remains on theoffice sector, in which we already have a platform and see acquisition and value-add opportunities. The primaryoffice market of Auckland is in the early stages of recovery with increasing leasing enquiry and positive netabsorption. There remains a large volume of distressed land throughout New Zealand, and banks are releasingsome assets into receivership/sale in a controlled manner presenting opportunities for alternative debt funding.BrazilAs with other emerging markets, Brazil fared materially better than many developed countries during therecession, however, while we believe that the demographic changes occurring in the region fuelled by a burgeoningmiddle class will continue to drive growth, we expect the return set in the near-term to be less opportunistic.We remain focused on the retail and office segments. Retail fundamentals continue to improvethroughout the country, driven by the low unemployment rates and increasing household income. Retail salesgrowth remains strong. National shopping center penetration levels are still low when compared to internationallevels, especially outside the main capitals. The office sector continues to post strong absorption levels, as theinflux of multinational companies and continued relocation of tenants from older dysfunctional assets to newmodern structures is driving demand. Both Rio de Janeiro and São Paulo remain at historic lows for vacancy. InBrazil, given that real estate operators are heavily reliant on the public markets for capital to execute businessplans, we believe there could be substantial opportunities for private capital, especially with volatility in theBrazilian stock market.Competition and MarketingThe nature and extent of competition we face varies from property to property and platform to platform.Our direct competitors include other publicly-traded office, retail, multi-family and industrial development andoperating companies, private real estate companies and funds, commercial property developers and other ownersof real estate that engage in similar businesses.We believe the principal factors that our tenants consider in making their leasing decisions include: rentalrates; quality, design and location of properties; total number and geographic distribution of properties;management and operational expertise; and financial position of the landlord. Based on these criteria, we believethat the size and scope of our operating platforms, as well as the overall quality and attractiveness of ourindividual properties, enable us to compete effectively for tenants in our local markets. Our marketing effortsfocus on emphasizing these competitive advantages and leveraging our relationship with Brookfield. We benefitfrom using the “Brookfield” name and the Brookfield logo in connection with our marketing activities asBrookfield has a strong reputation in the global real estate industry.Intellectual PropertyOur company and the Property Partnership have each entered into a licensing agreement with Brookfieldpursuant to which Brookfield has granted a non-exclusive, royalty-free license to use the name “Brookfield” andthe Brookfield logo. Other than under this limited license, we do not have a legal right to the “Brookfield” nameand the Brookfield logo.57