Mr. Spencer Enright reports

BRIDGEMARQ REAL ESTATE SERVICES(TM) ANNOUNCES COMPLETION OF STRATEGIC TRANSACTION TO ACQUIRE HIGH-QUALITY REAL ESTATE BROKERAGE ASSETS AND BECOME INDEPENDENTLY MANAGED

Bridgemarq Real Estate Services Inc. completed on March 31, 2024, the company's previously announced acquisition of Bridgemarq Real Estate Services Manager Ltd. and Proprio Direct Inc. from an affiliate of Brookfield Business Partners, and settled certain payments owing by the company. As consideration for the transaction, 2,920,877 Class B subordinated limited partnership units of Residential Income Fund LP were issued to Brookfield, which are exchangeable on a one-for-one basis into an equivalent number of restricted voting shares of the company.

"The completion of this transaction marks a pivotal moment for Bridgemarq. The acquisition of these brokerage operations and the internalization of the management team are crucial to the long-term success and growth of our business. Expanding the company's profile with the addition of new and innovative business models will allow us to increase revenues and better position our brands to capture greater market share. We believe this transaction will provide long-term value for shareholders and offer even more diverse and technology-forward solutions for our network of real estate professionals," said Spencer Enright, chief executive officer, Bridgemarq.

For additional details on the transaction, see the management information circular dated March 1, 2024, and the definitive share purchase agreement for the transaction dated Dec. 14, 2023, copies of which are available on the company's profile on SEDAR+.

Organizational update

Following the completion of the transaction, the company effected several key changes to the company's board of directors and management team to increase the operational effectiveness of the business while maintaining continuity of operations:

• Lorraine Bell, who has been a valuable member of the board since 2003, has succeeded Spencer Enright as the independent chair of the board;

• Mr. Enright, who for the past decade has been the chief executive officer of the manager and responsible for overall leadership and oversight over operations of the target entities, was appointed chief executive officer of Bridgemarq and will continue as a director on the board; and

• Phil Soper will continue in his role managing all agent and franchise relationships as the president of Bridgemarq, and Glen McMillan will continue in his role as chief financial officer of Bridgemarq.

Credit facility amendment

In connection with the transaction, the company has also amended its credit facility effective Feb. 21, 2024. The credit facility amendments include updating certain provisions to account for the new corporate structure and the company's expanded operations resulting from the transaction as well as increasing the company's aggregate borrowing capacity from $90-million to $95-million through a $5-million increase in the company's operating facility.

For a full description of the company's credit facility, see the company's annual information form for the year ended Dec. 31, 2023, or the company's annual report, which will be available on the company's website and on the company's profile on SEDAR+.

Advisers

Blair Franklin acted as independent financial adviser and Stikeman Elliott LLP acted as independent legal counsel to the special committee of the board in connection with the transaction. Goodmans LLP advised Brookfield on the transaction.

About Bridgemarq Real Estate Services

Bridgemarq is a leading provider of services to residential real estate brokers and a network of approximately 21,000 Realtors. It operates in Canada under the Royal LePage, Via Capitale, and Johnston & Daniel brands.

Bridgemarq is an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges.

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