TARGET SELECTS THREE HOMBURG CANADA REIT'S LOCATIONS

Zellers stores at Place Alexis Nihon, Place Longueuil and Cabot Square to be converted into Target stores

MONTREAL, June 3, 2011 /CNW Telbec/ - Homburg Canada Real Estate Investment Trust (TSX: HCR.UN) (the "REIT") today provided further details with respect to the three Zellers locations that have been selected by Target Corp. as part of its first-tranche sites. The REIT received a written commitment from Target Canada Inc., Target Corp.'s Canadian wholly-owned subsidiary ("Target Canada"), that the REIT's Zellers stores in Place Alexis Nihon (Montreal, Quebec), Place Longueuil (Longueuil, Quebec) and Cabot Square (St. John's, Newfoundland) will be converted into full Target stores. The three selected locations represent approximately 273,000 square feet of retail gross leasable area.

"We are pleased to welcome Target as an anchor tenant," said James Beckerleg, Chief Executive Officer of the REIT. "Target's election to convert three of the REIT's Zellers locations into Target stores further confirms the inherent quality and attractiveness of our retail portfolio. We are confident that the arrival of Target in our retail properties will positively impact traffic. This should enable us to achieve improved tenanting in our shopping malls, and could lead to further renovation opportunities at these locations. We certainly believe the benefits that Target will bring to our centres will more than compensate for lease adjustments provided to Target, which mainly consist of give-ups of modest future rent increases as well as percentage rent clauses that were never triggered by the Zellers lower per square foot sales. The REIT will also benefit from an improved covenant," Mr. Beckerleg concluded.

Target Canada's written commitment to the REIT provides for Target Canada to open full Target retail stores in the REIT's three selected existing Zellers locations pursuant to 60-year lease agreements (including options to renew), with no step-up or percentage rent clauses. The written commitment further provides for Target Canada to make a sizable investment in interior upgrades and/or exterior enhancement at each of the three locations, and possibly undertake site expansions at Place Alexis Nihon and Place Longueuil. At the Cabot Square location, the REIT has agreed to invest in a new roof and heating, ventilation and air conditioning systems and has maintained the right to construct additional square footage on land adjacent to the store. Target Canada will have the right to stop operating the three Zellers stores during the renovation period but will continue to pay its required rent.

Forward-looking Statements

This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the REIT's latest annual information form.

The REIT's objectives and forward-looking statements are based on certain assumptions, including that (i) the REIT will receive financing on favourable terms; (ii) the future level of indebtedness of the REIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting the REIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on the REIT's operations, including its financing capacity and asset value, will remain consistent with the REIT's current expectations; (v) the performance of the REIT's investments in Canada will proceed on a basis consistent with the REIT's current expectations; and (vi) capital markets will provide the REIT with readily available access to equity and/or debt.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. The REIT, except as required by applicable securities legislation, does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulatory authorities, including its latest annual information form, which are available on SEDAR at www.sedar.com.

About Homburg Canada Real Estate Investment Trust

Homburg Canada Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, the REIT owns a portfolio of Canadian income-producing commercial properties, consisting mainly of retail and office properties with certain industrial properties, as well as certain income-producing multi-family residential properties. The properties comprise approximately 7.8 million square feet of commercial gross leasable area and 1,725 multi-family residential units located in Quebec, Atlantic Canada, Western Canada and Ontario.

SOURCE HOMBURG CANADA REAL ESTATE INVESTMENT TRUST

For further information:

James W. Beckerleg
President and Chief Executive Officer        
Homburg Canada REIT
514-931-2591, ext. 358
Gordon G. Lawlor, CA
Executive Vice President, Chief Financial
Officer and Secretary
Homburg Canada REIT
514-931-2591,ext. 313
 
Paul de la Plante
NATIONAL Public Relations
514-843-2332

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HOMBURG CANADA REAL ESTATE INVESTMENT TRUST

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