We did not participate in the rights offering for Brookfield Residential ($BRP) mainly because we have enough exposure the residential RE now. We have been wondering what Brookfield ($BPO) would do with vthe $500M they raised from it:

NEW YORK, June 15, 2011 – Brookfield Office Properties Inc. (BPO: NYSE, TSX) today announced the completion of its rights offering which enabled its shareholders to purchase shares of Brookfield Residential Properties Inc. ($BRP: NYSE, TSX) at a price of $10 per share. 18,174,728 BRP shares were purchased in connection with the rights offering, netting approximately $182 million for Brookfield Office Properties. In addition, Brookfield Asset Management Inc. (TSX: BAM.A, NYSE: $BAM) purchased its pro rata share of BRP shares, as well as all additional shares of BRP not subscribed for in the rights offering by other BPO shareholders, pursuant to a standby commitment, for a total of 33,325,272 shares.

In total, Brookfield Office Properties netted $515 million through the sale of BRP shares

Today we get an answer:

NEW YORK, June 16, 2011 – Brookfield Office Properties (NYSE, TSX: BPO) today unveiled plans for a $250 million retail redevelopment of the World Financial Center in Lower Manhattan. The broad-scope changes expand the retail offerings and include high-end fashion, a European-style marketplace, and waterfront dining. In addition, a dramatic glass pavilion on West Street will link the Center to Lower Manhattan’s new transit hubs and serve as the main entranceway to the eight-million-square-foot complex.

“These improvements to the World Financial Center are coming at the perfect time, given the $20 billion private and public investment in Lower Manhattan, the completion of Hudson River Park, retail expansion throughout the district, and the anticipated completion of the two transit centers,” said Ric Clark, CEO of Brookfield Office Properties. “The World Financial Center Winter Garden has served as Lower Manhattan’s grand and welcoming public space for the past twenty years. In cooperation with the Battery Park City Authority and the Department of City Planning, we are pleased to be moving forward with a plan that incorporates the existing Winter Garden staircase and repositions the World Financial Center for decades to come.“

Construction is set to begin in October 2011 and will conclude in 2013.

“These upgrades are one of the major reasons for the current high level of corporate interest for office space at the World Financial Center,” said Dennis Friedrich, president & chief investment officer of Brookfield Office Properties. In spring 2011, Brookfield Office Properties successfully negotiated leases in excess of 600,000 square feet with corporations such as Oppenheimer Funds and Commerzbank. Brookfield is currently in serious negotiations for more than two million square feet with other major office tenants in the financial services, media and service sectors.

“I applaud Brookfield for making a significant investment in the redevelopment of this iconic space while respecting the concerns of our residents,” said Gayle Horwitz, president of the Battery Park City Authority. “This collaboration between the Battery Park City Authority, the community, and our partners at Brookfield Office Properties will create a first class destination spot for dining, shopping and working in Battery Park City. ”

Brookfield is now a pure office REIT play on some impressive assets. Since our purchase in Aug. 2009 we are up 100% in it (including dividends) and I think there is still room to run.