Shares issued: Class A - 17,034,489 Class B - 3,104,838
HALIFAX, June 28, 2011 /CNW/ - (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
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
SOURCE HOMBURG INVEST INC.
For further information:
NATIONAL Public Relations