Shares issued: Class A - 17,048,189 Class B - 3,112,838
HALIFAX, Jan. 7 /CNW/ - (TSX: HII.A & HII.B and NYSE Euronext Amsterdam:
HII) - Richard Homburg, Chairman and Chief Executive Officer of Homburg
Invest Inc. ("HII" or the "Company") announced today that the Company
has sold its Nurnberg property in Germany.
Although the terms of the transaction were not disclosed, the effect of
the sale is to remove approximately €102 million (CDN $135 million) of
long-term debt from the balance sheet of the Company, as well as the
primary asset, the property which was valued at approximately €12
million (CDN $15 million). The Company expects that the transaction
will result in a significant gain. The transaction closed December 31,
The Nurnberg property, which until recently was referred to as the
Quelle Complex, was originally acquired by the Company in June 2005.
At yearend 2009, pursuant to IFRS fair value accounting rules, the
Company wrote down the fair value of the property when the sole tenant
of the property declared bankruptcy and then vacated the property on
December 31, 2009.
"The sale of this property is excellent news for shareholders," said
Richard Homburg, Chairman and Chief Executive Officer of Homburg
Invest. "Together, we expect the sale of the property and associated
debt to have a significant positive impact on our balance sheet and net
asset value. This transaction improves our flexibility, and
demonstrates that reducing our debt remains a priority"
About Homburg Invest
Homburg Invest owns and develops a diversified portfolio of quality
commercial real estate including office, retail, industrial and
development properties throughout Europe and the United States, as well
as 33.7% of the units of Homburg Canada Real Estate Investment Trust.
The head office of the Company is located in Halifax, Nova Scotia.
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.
Paul de la Plante
NATIONAL Public Relations
|J. Richard Stolle|
President and COO
Homburg Invest Inc.