/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
HALIFAX, Feb. 23 /CNW/ - Homburg Invest Inc. (TSX: HII.A HII.B) (NYSE
Euronext Amsterdam: HII) ("HII") and Homburg Canada Real Estate
Investment Trust (the "REIT") have entered into an agreement to sell
9,650,000 units of the REIT (the "Units") on a bought deal basis at a
price of $11.40 per Unit to a syndicate of underwriters co-led by TD
Securities Inc., CIBC, Desjardins Securities Inc. and Scotia Capital
Inc. (the "Underwriters"). The REIT will issue 7,150,000 Units for
gross proceeds to the REIT of $81,510,000, and HII will sell 2,500,000
Units for gross proceeds to HII of $28,500,000.
HII will use the net proceeds from the offering for general operating
purposes. HII will not receive any proceeds from the Units sold by the
REIT. HII and its affiliates currently own a 40.1% interest in the REIT
through the ownership of 14,313,866 Units and 2,745,502 Class B limited
partnership units of Homburg Canada REIT Limited Partnership ("Class B
LP Units"). Upon completion of the offering, but before giving effect
to the over-allotment option granted by the REIT, it is anticipated
that HII and its affiliates will own 11,813,866 Units and 2,745,502
Class B LP Units, representing an interest of approximately 29.3% in
Closing of the offering is expected to occur on or about March 15, 2011.
The offering is subject certain conditions, including customary
regulatory approvals. The terms of the offering will be described in a
short form prospectus to be filed with the securities commissions and
other similar regulatory authorities in each of the provinces of Canada
on or about March 1, 2011.
This press release is not an offer of securities for sale in the United
States. The units being offered have not been and will not be
registered under the United States Securities Act of 1933 and
accordingly are not being offered for sale and may not be offered, sold
or delivered, directly or indirectly within the United States, its
possessions and other areas subject to its jurisdiction or to, or for
the account or for the benefit of a U.S. person, except pursuant to an
exemption from the registration requirements of that Act.
About Homburg Invest Inc.
Homburg Invest Inc. 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. Its head office is located in Halifax, Nova Scotia.
This news release may contain statements which by their nature are
forward-looking and express HII's beliefs, expectations or intentions
regarding future performance, future events or trends. Forward looking
statements are made by HII 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.
|Paul de la Plante|
NATIONAL Public Relations