Homburg Invest enters into agreement to further internalize the management of its properties

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Nov. 28, 2011 /CNW Telbec/ - Homburg Invest Inc. (NYSE Euronext Amsterdam: HII) ("HII" or the "Company") announced today that it has entered into an agreement dated as of November 17, 2011 (the "Agreement") with Homburg Canada Incorporated ("HCI") and certain of its affiliates (collectively, the "Vendor Group") pursuant to which the Company will further internalize the management of its properties (the "Transaction"). The closing of the Transaction is subject to certain conditions, including satisfactory due diligence and obtaining a final order from the Court under the Canadian Companies' Creditors Arrangement Act ("CCAA") and the approval of Samson Bélair / Deloitte & Touche Inc., the independent monitor appointed by the Court to oversee the CCAA proceedings.

The Agreement was entered into to facilitate the diligent pursuit of HII's restructuring efforts with a view to submitting a plan of arrangement or compromise to creditors in due course. The Agreement provides that the Company will acquire from the Vendor Group the real estate management business activities carried on by the Vendor Group with respect to the properties owned by the Company in Europe (other than those located in the Baltics), and certain related assets. The closing will also settle the claim for damages received from HCI totalling approximately $27 million further to the termination by the Company of the master property and asset management agreement between the Company and certain of its affiliates and HCI and certain outstanding intercompany payables owing to the Vendor Group. The Agreement also provides HII with appropriate control mechanisms in respect of its assets held through its partnership entities and currently controlled by the Vendor Group through general partners. The consideration payable by HII for the Transaction is equal to $21 million, subject to certain adjustments. It would be satisfied by a cash payment of $10.5 million and other consideration.

The Company believes that the Agreement is a positive outcome and is beneficial to all stakeholders and that it addresses the concerns of the Netherlands Authority for the Financial Markets and the Monitor with respect to the control exercised by the Company's majority shareholder.

The Company remains under creditor protection pursuant to the provisions of the CCAA, with its stay of proceedings having been extended by the Court to December 9, 2011.

About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality commercial real estate including office, retail, industrial and development properties throughout Europe and the United States, as well as an interest in CANMARC Real Estate Investment Trust.

Forward-Looking Statements
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation, including statements concerning the CCAA proceedings and future business operations. Forward-looking statements are made by HII 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. Some of the material risks include not being able to acquire required authorizations and the uncertainty involved in the Court proceedings and the implementation of a plan under the CCAA. Unless otherwise required by law, the Company does not intend or does not assume any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise. 

SOURCE HOMBURG INVEST

For further information:

Canada
Caroline Martel
NATIONAL Public Relations
(514) 843-2313
cmartel@national.ca
Netherlands
Heleen Jansen
Cohn & Wolfe
Tel 0031 (0)20 6768666
heleen.jansen@cohnwolfe.nl

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HOMBURG INVEST

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