Homburg Canada Real Estate Investment Trust Closes $72.7 Million Bought Deal Financing

/Not for dissemination in the United States or distribution through United States news or wire services./

MONTREAL, Sept. 13, 2011 /CNW Telbec/ - Homburg Canada Real Estate Investment Trust (the "REIT") (TSX: HCR.UN) announced today the closing of its previously announced bought deal financing of units of the REIT (the "Units") at a price of $11.50 per Unit.

The syndicate of underwriters led by TD Securities Inc. elected to exercise its over-allotment option in full and purchased an additional 825,000 Units, resulting in a total of 3,325,000 Units being issued today by the REIT for gross proceeds to the REIT of $38,237,500.

Concurrent with the issuance and sale of Units by the REIT, Homburg Invest Inc. ("HII"), participating as a selling unitholder in the bought deal financing of the REIT, completed the sale of 3,000,000 Units at the same price per Unit for gross proceeds to HII of $34,500,000.

The REIT will use the net proceeds from the offering to repay debt, fund future acquisitions and for general trust purposes. The REIT will not receive any proceeds from the Units sold by HII. As at the date hereof, HII owns 8,813,866 Units, representing an interest of approximately 16.1% in the REIT.

This press release is not an offer of securities for sale in the United States.  The units being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.

About Homburg Canada Real Estate Investment Trust

Homburg Canada Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, the REIT owns a portfolio of Canadian income-producing commercial properties, comprised mainly of retail and office properties with certain industrial properties, as well as certain income-producing multi-family residential properties. The properties comprise approximately 8.0 million square feet of commercial gross leasable area and 1,725 multi-family residential units located in Quebec, Atlantic Canada, Western Canada and Ontario.

SOURCE Homburg Canada Real Estate Investment Trust

For further information:

James W. Beckerleg
President and Chief Executive Officer
Homburg Canada Real Estate Investment Trust 
514-931-2591 ext. 358
Mélanie Tardif
NATIONAL Public Relations
514-843-2060
 
Gordon G. Lawlor, CA
Chief Financial Officer
Homburg Canada Real Estate Investment Trust
514-931-2591 ext. 313

 

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Homburg Canada Real Estate Investment Trust

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