Trizec Announces Property Dispositions

Trizec Announces Property Dispositions

    Business Editors

    CHICAGO--(BUSINESS WIRE)--Jan. 3, 2005--

2004 Dispositions Exceed $1 billion; Company Exits Two More Non-Core Markets
    Trizec Properties, Inc. (NYSE:TRZ) today announced it has completed the dispositions of two office properties for an aggregate of approximately $85.6 million. The properties are 250 West Pratt Street in Baltimore and Bank of America Plaza in Columbia, S.C.
    With these transactions, both of which occurred in late December 2004, Trizec has now exited the Baltimore and Columbia markets, consistent with the Company's strategy of focusing on its core markets. The Company exited a total of five non-core markets during 2004.
    On December 17, Trizec sold 250 West Pratt to Behringer Harvard Funds for approximately $51.8 million. The 24-story, 368,000-square-foot building was built in 1986 and is located in Baltimore's business district near the Inner Harbor area.
    On December 30, Trizec sold Bank of America Plaza for $33.8 million to Columbia SC Owner LLC. Located in downtown Columbia at 1901 Main Street, the 17-story, 303,000-square-foot property was built in 1989.
    Tim Callahan, Trizec's President and Chief Executive Officer commented, "The completion of these transactions has helped us to close out 2004 on a high note. We had hoped to make substantial progress on the repositioning of our portfolio during the past few months, and we fully accomplished what we set out to do. We are entering 2005 well-positioned to take advantage of opportunities as they present themselves."
    During the fourth quarter of 2004, Trizec sold 7 non-core office properties and a land parcel for aggregate proceeds of approximately $440 million. For the year, Trizec sold over $1 billion of non-core office, retail and other real estate assets. Also during 2004, Trizec acquired Bank of America Plaza, a 55-story, 1.4 million-square-foot Class A office building in downtown Los Angeles, in August for $435 million. The Company also purchased a significant interest in 2001 M Street, a 229,000-square-foot premier office property in Washington, D.C., in November which valued the property at $76.6 million. Both acquisitions were part of the Company's continuing capital recycling program.

    Trizec Properties, Inc., a real estate investment trust (REIT) headquartered in Chicago, is one of the largest owners and operators of commercial office properties in the United States. The Company has ownership interests in and manages a high-quality portfolio of 52 office properties totaling approximately 37 million square feet concentrated in the metropolitan areas of seven major U.S. cities. The Company trades on the New York Stock Exchange under the symbol TRZ. For more information, visit Trizec's web site at www.trz.com or call toll free at 1 (800) 891-7017.

    This release contains forward-looking statements, within the meaning of the federal securities laws, relating to our business and financial outlook which are based on our current expectations, beliefs, projections, forecasts, future plans and strategies, and anticipated events or trends. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements are not guarantees of future performance and financial condition. Forward-looking statements are not historical facts. Instead, such statements reflect estimates and assumptions and are subject to certain risks and uncertainties that are difficult to predict or anticipate. Therefore, actual outcomes and results may differ materially from those projected or anticipated in these forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, without limitation, the risks described in our annual report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2004, as the same may be supplemented from time to time. These factors include, without limitation, the following: changes in national and local economic conditions, including those economic conditions in our seven core markets; the extent, duration and strength of any economic recovery; our ability to maintain occupancy and to timely lease or re-lease office space; the extent of any tenant bankruptcies and insolvencies; our ability to sell our non-core office properties in a timely manner; our ability to acquire office properties selectively in our core markets; our ability to maintain REIT qualification and changes to U.S. tax laws that affect REITs; Canadian tax laws that affect treatment of investment in U.S. real estate companies; the competitive environment in which we operate; the cost and availability of debt and equity financing; the effect of any impairment charges associated with asset dispositions or changes in market conditions; our ability to obtain, at a reasonable cost, adequate insurance coverage for catastrophic events, such as earthquakes and terrorist acts; and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

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CONTACT: Trizec Properties, Inc., Chicago Investor Contact: Dennis C. Fabro, 312-798-6290 or Media Contact: Rick Matthews, 312-798-6128

KEYWORD: ILLINOIS INTERNATIONAL CANADA INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION MARKETING AGREEMENTS SOURCE: Trizec Properties, Inc.

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