MONTREAL and HALIFAX, June 15 /CNW/ - At its Annual General Meeting of
Shareholders held in Montreal this morning, Homburg Invest Inc. ("Homburg")
(TSX: HII.A & HII.B and AEX: HII) provided an overview of the record
achievements of 2006, including a doubling of assets to over $2 billion and
also provided an outline of its expansion strategy with an emphasis on 2007
which promises to be another banner year.
"2006 was truly a year of exceptional growth. We completed 10 European
transactions for a total of over 620 million euros and as a result more than
doubled our assets to over $2 billion at the end of the year," said Richard
Homburg, Chairman and Chief Executive Officer of Homburg Invest. "We have been
disciplined and successful in expanding our portfolio, leveraging our unique
corporate structure which places no limit on international growth or on our
ability to develop projects. The result has been a compound annual growth rate
of over 57% for the past five years," added Mr. Homburg.
Today, Homburg owns a truly international portfolio of 136 quality real
estate properties including office, retail, industrial and residential assets,
representing approximately 14.5 million square feet of gross leaseable area in
Europe, throughout The Netherlands and Germany, as well as in North America,
throughout Canada and in the Southern United States.
Homburg's growth for 2007 and beyond will come from its prudent
acquisition strategy focused on quality cash flow, attractive sales/lease-back
transactions such as the ones recently completed with Infineon, Philips and
KPN, in Europe, and the direct development of its own properties.
Strong Canadian Presence
Homburg already owns a strong development pipeline of 17 projects both
commercial and residential mainly in Quebec and Alberta, with total
development costs of $3 billion forecast over the next 8 years. Certain
projects will generate long-term cash-flow while others, such as condominium
projects, are expected to generate one-time cash flow upon completion.
In Quebec, Homburg is active in Montreal which it sees as an attractive
and undervalued market. The two main projects are joint ventures, one is a
$35-million luxury condominium project (112 units) and the other involves the
re-development of the well known Château Viger site into a large-scale urban
resort project with a market-leading hotel. Homburg expects to complete the
condominium project by the fall of 2008 while completion of the Viger Montreal
site should occur in 2010.
In Alberta, Homburg has approximately 1.2 million square feet of office
space expected to be completed before the end of 2009 and over 1000
residential units targeted for completion by the end of 2010. In addition,
Homburg owns approximately 500 acres of land within the city limits of
Calgary, which is in the pre-development planning stage and is expected to
consist of over 5,000 single and multi-family residential housing units.
"Fiscal 2007 is already off to a very strong start. We recently completed
the acquisition of the retail properties of Alexis Nihon as well as the office
and residential components of Place Alexis Nihon; we have announced a joint
venture with Cedar Shopping Centres in the United States and have also
announced the acquisition of 63 properties for approximately CAD$300 million
in the Baltics (Estonia, Latvia and Lithuania) from the SEB Group," added
"As we execute on our growth strategy, we remain focused on creating
value. As significant shareholders ourselves, we believe in returning a
portion of the value created, in the form of dividends which we have paid for
each of the past 3 years. We recently increased our dividend to $0.48 per
share, on an annualized basis, representing a yield of approximately 8.5% at
the current share price," concluded Richard Homburg.
Election of Directors and Appointment of Auditors
Homburg also announced that shareholders of the Company have elected
Richard Homburg, Michael H. Arnold, Rudolf D. Bakhuizen, Dr. Trevor A.
Carmichael, Walter R. Fitzgerald, and Edward P. Osvenny as Directors of the
Corporation. Shareholders also appointed Grant Thornton LLP as auditors of the
Homburg, with its head office in Halifax, Nova Scotia, 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.
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.
For further information:
For further information: Mr. Richard Homburg, Chairman and CEO of
Homburg, (902) 468-3395; For information on Homburg Invest Inc., visit our
website at www.homburginvest.com