Homburg International Group announces the acquisition of the Holman Grand Hotel, Confederation Court Complex, National Bank Tower, BDC Place, and the Homburg Financial Tower, in Charlottetown, Prince Edward Island

Not for release, distribution or publication, in whole or in part, in the United States, Japan or Australia

HALIFAX and CHARLOTTETOWN, May 22, 2013 /CNW/ - Richard Homburg, Chairman, and Jamie Wentzell, CEO, of Homburg International Group ("Homburg International") announce that Homburg International has acquired the Holman Grand Hotel, the Confederation Court Complex, the National Bank Tower, BDC Place, and the Homburg Financial Tower in Charlottetown, Prince Edward Island, through the acquisition of all the outstanding shares in Hardegane Investments Limited ("Hardegane"), a wholly-owned subsidiary of Cominar REIT.  Hardegane owns Dyne Holdings Limited ("Dyne"), which owns the subject properties.

The Confederation Court Complex is in the heart of Charlottetown and includes the Shops of Confederation Court Mall - 106,000 square feet of leasable retail area with a 400 seat food court. The National Bank Tower is a four story office tower on top of the mall with 58,000 square feet of leasable area.  BDC Place is located at 119 Kent Street, and is a Class A building with six floors and leasable area of 64,000 square feet, connected to the Shops of Confederation Court Mall by an over-street pedway. The Homburg Financial Tower is a Class A office building built in 2009.  It is located at 98 Fitzroy Street and has eight floors and 34,000 square feet of leasable area, connected to indoor parking.

The Holman Grand Hotel, is a newly constructed, 80 room boutique style hotel, located at 123 Grafton Street, directly across from the Confederation Centre of the Arts.  It is attached to and accesses the Confederation Court Complex and is connected by a pedway to the Confederation Centre of the Arts. The main level of the Hotel houses the popular Redwater Rustic Grille Restaurant.

Until November 5, 2012, the Holman Grand Hotel had been operated by Homburg Invest Inc. ("HII").  Since September, 2011, HII has been under court-ordered creditor protection of the Quebec Superior Court under the Companies' Creditors Arrangement Act ("CCAA"). Mr. Homburg has had no involvement whatsoever in the management of HII since resigning as an officer and director in March, 2011, and has not held a control position in HII since July, 2011, although the company continued to use the Homburg name.

The Holman Grand Hotel will be immediately re-opened and management will begin hiring staff and accepting bookings for rooms, weddings and other events.  At the same time, Homburg International will be contacting suppliers, trade creditors, and others who had dealings with the Hotel to re-establish positive business relationships.

In respect of Hotel trade creditors, it is the intention of Homburg International that, following outstanding claims being finalized and distributions made pursuant to the HII CCAA process, the remaining claims will be reviewed and where appropriate ex gratia payments will be made on the proven claims. Funds in the amount of $1.75M have been earmarked for this purpose and payments will be conditional on the claimants having pursued and received their distributions under the CCAA process.

Mr. Wentzell said, "It has taken us nearly two years to get to this point but now, with this acquisition, we can initiate discussions with the small businesses and tradespeople of Prince Edward Island who still have outstanding creditor claims against HII. Following completion of the CCAA process, we intend to work hard to move this process forward to ensure that they ultimately receive appropriate compensation."

The loans advanced previously by government on the properties are preserved under this arrangement, without any write-downs in public money that had been suggested when the Holman Grand was closed.

Mr. Homburg has had a longstanding involvement and commitment to Charlottetown and Prince Edward Island. He states:

"By acquiring these properties, we will now finish what we started several years ago.  We can reopen businesses, bring people back to work, generate the economic activity in Charlottetown that we always intended, and consolidate our longstanding and positive corporate presence of over 40 years in Prince Edward Island.  We are gratified that the Province has supported us in this, and we look forward to contributing valuable and successful properties, and relationships, in the community of PEI."

Mr. Wentzell stated: "We are very excited by this acquisition and the prospects for the future. With overall management and marketing under one committed owner and completion of the planned upgrades, we are certain the future is bright for the properties we are acquiring in downtown Charlottetown."

About Homburg International Group

Homburg International Group is involved in various and diversified business interests and divisions including real estate investment and management, construction and development, aviation, manufacturing and distribution, retail, educational, hospitality, and other business interests in Halifax, Nova Scotia, Canada, and Europe.

This announcement does not constitute an offer to purchase any securities, nor a solicitation of any offer, proxy, consent or authorization to buy or subscribe for any, nor shall it (or any part of it) form the basis of, or be relied upon in connection with, any contract therefore. This announcement may not be released, published, distributed or otherwise sent, in whole or in part, in or into the United States of America, Japan or Australia.

SOURCE: Homburg International Limited

For further information:

Mr. Jamie Wentzell, CA
CEO, Homburg International Group
902-468-3395
http://www.homburg.com

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Homburg International Limited

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