HOMBURG INVEST ANNOUNCES SALE AND PURCHASE OF JOINT VENTURE INTERESTS IN THE UNITED STATES

Transactions to Facilitate Value-Generating Reorganization Strategy

Shares issued:  Class A - 17,094,490    Class B - 3,148,538

MONTREAL, Feb. 15 /CNW Telbec/ - (TSX: HII.A, HII.B) (NYSE Euronext Amsterdam: HII) - Richard Homburg, Chairman and Chief Executive Officer of Homburg Invest Inc. ("Homburg Invest" or the "Company") announced today that, pursuant to the exercise of certain "buy-sell" provisions in certain joint venture agreements with Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar"), the Company will sell its 80% interest in one of the nine properties owned by the Homburg/Cedar joint ventures (Homburg 80%-Cedar 20%) to Cedar.  Homburg Invest will also purchase Cedar's 20% interest in the remaining eight joint venture properties. The transactions will facilitate Homburg Invest's ability to fully implement its strategy in the US.

"More than a year ago, we announced a strategic initiative to reorganize our income-producing properties into four geographic entities and a development company," said Richard Homburg.  "These transactions represent a critical step in our reorganization strategy in the US, which will create value for our shareholders.

Sale of 80% Interest in One Property

Homburg Invest has agreed to sell its 80% interest in Meadows Marketplace in Hershey, Pennsylvania for approximately $5.34 million.

Acquisition of 20% Interests in Eight Properties

Homburg Invest has also agreed to buy Cedar's 20% interest in eight properties presently owned by the Homburg/Cedar joint ventures for approximately $9.66 million. Owning 100% of these properties will facilitate Homburg Invest's ability to fully implement its reorganization strategy in the U.S.  The Company will acquire the following seven properties in Pennsylvania and one in Massachusetts, all of which are supermarket anchored:

  • Aston Center, Aston, PA
  • Ayr Town Center, McConnellsburg, PA
  • Scott Town Center, Bloomsburg, PA
  • Stonehedge Square, Carlisle, PA
  • Pennsboro Commons, Enola, PA
  • Parkway Plaza, Mechanicsburg, PA
  • Spring Meadow Shopping Center, West Lawn, PA
  • Fieldstone Marketplace, New Bedford, MA

Upon closing of all the respective transactions, which will be subject to customary closing conditions, including among other things, approval by lenders, the balance of amounts payable by Homburg Invest net will be approximately $4.32 million to Cedar and the Cedar/Homburg joint ventures will be terminated.

Forward-looking Statements 

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, which 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. 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 the information contained herein.


SOURCE HOMBURG INVEST INC.

For further information:

please contact:

Mr. Richard Homburg
Chairman and CEO
Homburg Invest Inc.
(902) 468-3395

or

J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855

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HOMBURG INVEST INC.

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