HALIFAX and MONTREAL, June 5 /CNW/ - Homburg Invest Inc. ("Homburg")
(TSX: HII.A & HII.B and AEX: HII) and Alexis Nihon Real Estate Investment
Trust ("Alexis Nihon") announced that they closed the sale of substantially
all of the industrial and office properties of Alexis Nihon (excluding the
office component of Place Alexis Nihon) (the "Properties") to Cominar Real
Estate Investment Trust ("Cominar") effective on June 1, 2007. The closing is
subject to customary property registrations expected in the next few days.
The transaction was previously announced on February 20, 2007, when
Homburg and Cominar entered into an agreement pursuant to which Homburg agreed
to cause Alexis Nihon to sell the Properties and certain other properties
co-owned by Alexis Nihon and a third party to Cominar for an aggregate
purchase price of $592 million, including the assumption of debt relating to
those properties. The purchase price for the Properties, which does not
include Alexis Nihon's co-owned properties, will be satisfied by a cash
payment of $337 million and by the assumption by Cominar of the outstanding
principal balance of $238 million under the terms of the existing mortgage
financings in respect of the Properties. The cash proceeds will be disbursed
to Homburg once title to the Properties has been registered.
Cominar has unconditionally offered to purchase Alexis Nihon's interest
in such other co-owned properties for a purchase price of approximately
$17.3 million, including the assumption of $3.2 million of debt relating to
those properties, subject to the exercise or waiver by the co-owner of such
properties of its rights of first refusal.
As a result, and taking into consideration the acquisition by Homburg of
all of the issued and outstanding units of Alexis Nihon, Homburg has acquired
almost 1.5 million square feet of prime retail properties in Montreal,
including Place Alexis Nihon and Centre Laval, as well as the Spheretech
retail entertainment complex. This also includes more than 600,000 square feet
of Class A office space that is part of the Place Alexis Nihon complex as well
as 426 residential units.
Homburg will use the cash proceeds from the sale to repay a portion of
the senior and junior secured non-revolving bridge loans which were put in
place to finance its acquisition of all of the issued and outstanding units of
Homburg, with its head office in Halifax, Nova Scotia, owns and develops
a diversified portfolio of quality real estate including office, retail,
industrial and residential apartment and townhouse properties throughout
Canada, the United States and Europe.
About Alexis Nihon
Alexis Nihon is a wholly-owned indirect subsidiary of Homburg that
currently owns interests in Place Alexis Nihon (which includes an office and
retail component, as well as a 426 unit multi-family residential property) and
seven retail properties, all located in the greater Montreal area with an
aggregate of 2.2 million square feet of leasable area.
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.
For further information: Mr. Richard Homburg, Chairman and CEO of
Homburg, (902) 468-3395; Guy Charron, Executive Vice-President and Chief
Operating Officer of Alexis Nihon, (514) 931-2591; For information on Homburg
Invest Inc., visit our website at www.homburginvest.com.