Homburg Invest sells properties located in Calgary for approximately $39.7 million
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Shares issued: Class A - 17,034,489 Class B - 3,104,838
HALIFAX, June 28, 2011 - (TSX: HII.A HII.B) (AEX:HII) - Homburg Invest Inc.
("HII" or the "Company") announced today that it has sold the properties
municipally known as 100 Centron Park located at 3600 4 St. SE in Calgary,
Alberta and 200 and 300 Centron Park located at 4000 4 St. SE in Calgary,
Alberta, to Homburg Canada Real Estate Investment Trust ("HCR") for a total
consideration of $39.7 million payable in cash.
Proceeds of the sale will be used to make an interest payment on long-term debt;
to fund a guarantee of future head lease rents to the buyer; to complete
previously agreed upon tenant leasehold improvements and to pay down bank debt.
HII has also granted HCR an option to acquire, if and when constructed,
buildings that will be municipally known as 400, 500, 600 and 700 Centron Park,
as well as the lands upon which these buildings are intended to be erected.
The transaction was reviewed by a special committee of independent directors
(the "Committee") of the board of HII (the "Board") which recommended that the
Board approve the transaction. The Committee and the Board determined that the
terms of the transaction were reasonable in the circumstances and that the sale
was in the best interest of the Company.
The transaction is a "related party transaction" under applicable securities
regulatory requirements and HII is relying on exemptions from the formal
valuation and minority approval requirements that the Board and the Committee
have determined are available. The properties were offered to, and accepted by,
HCR in accordance with the provisions of the Investment Restrictions Agreement
entered into between HII and HCR in connection with the initial public offering
of HCR completed in May 2010.
The closing of the transaction occurred less than 21 days following the filing
of a material change report by the Company. The Committee and the Board have
determined that it is reasonable and necessary to complete the transaction on an
expedited basis in order to meet the current financial obligations of HII.
About Homburg Invest
Homburg Invest, with its head office in Halifax, Nova Scotia, owns and develops
a diversified portfolio of quality real estate including office, retail and
industrial properties throughout Canada, the United States and Europe.
This news release may contain statements which by their nature are forward
looking and express the Company´s beliefs, expectations or intentions regarding
future performance, future events or trends. Forward looking statements are made
by the Company in good faith, given management´s expectations or intentions
however, they are subject to market conditions, acquisitions, occupancy rates,
capital requirements, sources of funds, expense levels, operating performance
and other matters. Therefore, forward looking statements contain assumptions
which are subject to various factors including: unknown risks and uncertainties:
general economic conditions; local market factors; performance of other third
parties; environmental concerns; and interest rates, any of which may cause
actual results to differ from the Company´s good faith beliefs, expectations or
intentions which have been expressed in or may be implied from this news
release. Therefore, forward looking statements are not guarantees of future
performance and are subject to known and unknown risks. Information and
statements in this document, other than historical information, should be
considered forward-looking and reflect management´s current views of future
events and financial performance that involve a number of risks and
uncertainties. Factors that could cause actual results to differ materially
include, but are not limited to, the following: general economic conditions and
developments within the real estate industry, competition and the management of
growth. The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
FOR FURTHER INFORMATION :
Serge Vallières
NATIONAL Public Relations
514 843-2310
PDF version of the press release:
http://hugin.info/138798/R/1526638/462307.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Homburg Invest Inc. via Thomson Reuters ONE
[HUG#1526638]
CA4368714040
