/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES/
MONTREAL, June 24 /CNW/ - Homburg Canada Real Estate Investment Trust ("HCR") (TSX: HCR.UN) announced today that pursuant to the underwriting agreement dated May 14, 2010 between HCR, Homburg Canada REIT Limited Partnership, Homburg Invest Inc. ("Homburg Invest"), Homburg Canada Incorporated and a syndicate of underwriters led by TD Securities Inc. (the "Underwriters"), the Underwriters have partially exercised their over-allotment option to purchase 1,628,900 additional units of HCR ("Units") at a price of $10.00 per Unit, of which 651,560 Units are to be issued and sold by HCR from treasury for an aggregate gross consideration of $6,515,600 to HCR and 977,340 Units are to be sold by Homco Realty Fund (199) Limited Partnership, a subsidiary of Homburg Invest (which acted as a promoter of HCR), as a secondary offering of a portion of the Units it holds for an aggregate gross consideration of $9,773,400 to Homburg Invest. The net proceeds to HCR from the exercise of the over-allotment option will be used by HCR to fund growth opportunities and acquisitions and for general working capital purposes. The closing of the purchase and sale of Units pursuant to the over-allotment option will be completed on June 29, 2010.
Following closing, Homburg Invest will own 41.3% of the outstanding Units and Homburg Canada Incorporated will own 7.9% of the outstanding Units. The remaining 50.8% of the outstanding Units will be owned by the public.
The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America or in the European Economic Area.
About Homburg Canada Real Estate Investment Trust
Homburg Canada Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, HCR owns a portfolio of Canadian income-producing commercial properties, comprised mainly of retail and office properties with certain industrial properties, as well as certain income-producing multi-family residential properties. The properties comprise approximately 6.6 million square feet of commercial gross leasable area and 1,725 multi-family residential units located in Québec, Atlantic Canada, Western Canada and Ontario.
This press release contains forward-looking statements which reflect HCR's current expectations regarding future events. The forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. HCR disclaims any obligation to update these forward-looking statements, except as required by law.
SOURCE HOMBURG CANADA REAL ESTATE INVESTMENT TRUST
For further information: For further information: James W. Beckerleg, President and Chief Executive Officer, Homburg Canada Real Estate Investment Trust, (514) 841-9725 ext. 358; Paul de la Plante, NATIONAL Public Relations, (514) 843-2332; Gordon G. Lawlor, CA, Chief Financial Officer, Homburg Canada Real Estate Investment Trust, (902) 468-2850 ext. 236