Transactions to Facilitate Value-Generating Reorganization Strategy
Shares issued: Class A - 17,094,490 Class B - 3,148,538
MONTREAL, Feb. 15 /CNW Telbec/ - (TSX: HII.A, HII.B) (NYSE Euronext
Amsterdam: HII) - Richard Homburg, Chairman and Chief Executive Officer
of Homburg Invest Inc. ("Homburg Invest" or the "Company") announced
today that, pursuant to the exercise of certain "buy-sell" provisions
in certain joint venture agreements with Cedar Shopping Centers, Inc.
(NYSE: CDR) ("Cedar"), the Company will sell its 80% interest in one of
the nine properties owned by the Homburg/Cedar joint ventures (Homburg
80%-Cedar 20%) to Cedar. Homburg Invest will also purchase Cedar's 20%
interest in the remaining eight joint venture properties. The
transactions will facilitate Homburg Invest's ability to fully
implement its strategy in the US.
"More than a year ago, we announced a strategic initiative to reorganize
our income-producing properties into four geographic entities and a
development company," said Richard Homburg. "These transactions
represent a critical step in our reorganization strategy in the US,
which will create value for our shareholders.
Sale of 80% Interest in One Property
Homburg Invest has agreed to sell its 80% interest in Meadows
Marketplace in Hershey, Pennsylvania for approximately $5.34 million.
Acquisition of 20% Interests in Eight Properties
Homburg Invest has also agreed to buy Cedar's 20% interest in eight
properties presently owned by the Homburg/Cedar joint ventures for
approximately $9.66 million. Owning 100% of these properties will
facilitate Homburg Invest's ability to fully implement its
reorganization strategy in the U.S. The Company will acquire the
following seven properties in Pennsylvania and one in Massachusetts,
all of which are supermarket anchored:
Aston Center, Aston, PA
Ayr Town Center, McConnellsburg, PA
Scott Town Center, Bloomsburg, PA
Stonehedge Square, Carlisle, PA
Pennsboro Commons, Enola, PA
Parkway Plaza, Mechanicsburg, PA
Spring Meadow Shopping Center, West Lawn, PA
Fieldstone Marketplace, New Bedford, MA
Upon closing of all the respective transactions, which will be subject
to customary closing conditions, including among other things, approval
by lenders, the balance of amounts payable by Homburg Invest net will
be approximately $4.32 million to Cedar and the Cedar/Homburg joint
ventures will be terminated.
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, 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. 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 the information contained herein.
SOURCE HOMBURG INVEST INC.
For further information:
Mr. Richard Homburg
Chairman and CEO
Homburg Invest Inc.
J. Richard Stolle
President and COO
Homburg Invest Inc.