TRZ Trizec Properties

Trizec Properties, Inc. (NYSE:TRZ), today announced that it has completed a refinancing of One New York Plaza, located at One Water Street in downtown Manhattan. The new 10-year, $400 million first mortgage carries an effective interest rate of approximately 5.14 percent and replaces a 7.27 percent, $228.4 million property loan that was scheduled to mature in May 2006. The lenders for this transaction were an affiliate of Goldman Sachs and Lehman Brothers. This refinancing results in net proceeds of approximately $165 million to Trizec and will provide funds to reduce the outstanding balance on the Company's revolving credit facility and to pay down several tranches of the Company's CMBS loan. Combined, the refinancing of One New York Plaza and the partial CMBS repayment have several positive impacts on Trizec's consolidated debt, including: addressing over 90 percent of the 2006 debt maturities, extending the weighted average term to maturity and reducing the weighted average interest rate. As part of this transaction, Trizec has settled forward rate lock hedges that were entered into in anticipation of the refinancing of One New York Plaza. These settlements resulted in a gain that reduces the interest rate on this loan from a coupon rate of 5.50 percent to an effective rate of approximately 5.14 percent. Mike Colleran, Trizec's executive vice president and chief financial officer commented, "There was a significant amount of interest in the lending community to refinance One New York Plaza, which we see as a clear endorsement of the quality of the property and Trizec's operating platform." Mr. Colleran added, "We are very pleased with the attractive terms we were able to obtain on this financing and equally pleased with the immediate positive impact it has on our overall balance sheet." One New York Plaza is a 2.5 million square foot, 50-story building at the foot of downtown Manhattan offering impressive views of the East River and New York Harbor. The modern facade and lobby are complemented with modern communications and security features as well as convenient amenities and public transportation options. 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 49 office properties totaling approximately 36 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. We intend these forward-looking statements, which are not guarantees of future performance and financial condition, to be covered by the safe harbor provisions for forward-looking statements contained in the federal securities laws. 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. 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 under "Item 1. Business - Risk Factors" in our 2004 Form 10-K, filed with the Securities and Exchange Commission on March 11, 2005. 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 integrate and realize the full benefits from our acquisitions, including the Arden office portfolio; our ability to maintain REIT qualification and changes to U.S. tax laws that affect REITs; material increases in the amount of special dividends payable to affiliates of Trizec Canada on shares of our special voting stock as a result of increases in the applicable cross-border withholding tax rates; 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 changes in market conditions; the sale or other disposition of shares of our common stock owned by Trizec Canada Inc.; 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.