Homburg Invest Inc. Announces Participation in the Bought Deal Financing of Homburg Canada Real Estate Investment Trust


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 the REIT.

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.

Forward-Looking Statements

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.


For further information:

Mr. Richard Homburg   
Chairman and CEO
Homburg Invest Inc.
(902) 468-3395

J. Richard Stolle
President and COO
Homburg Invest Inc.
Paul de la Plante
NATIONAL Public Relations
(514) 843-2332

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