Homburg Canada Real Estate Investment Trust files final prospectus for
initial public offering


MONTREAL, May 17 /CNW/ - Homburg Canada Real Estate Investment Trust (the "REIT") announced today that it has filed and obtained receipts for a final prospectus with the securities regulatory authorities of all provinces and territories in Canada in respect of initial public offering of 16,000,000 units of the REIT (the "Units"). The Units will be issued at a price of $10.00 per Unit and will provide investors with a cash-on-cash yield of 9.5% annually, to be paid through monthly distributions. Gross proceeds of the offering are expected to be $160,000,000.

An option to purchase up to an aggregate of 2,400,000 additional Units at the offering price has been granted to the underwriters of the offering, of which up to 960,000 Units are to be issued and sold by the REIT from treasury and 1,440,000 Units are to be sold by Homburg Invest Inc. ("HII", one of the promoters of the REIT) as a secondary offering of a portion of the Units it will hold as a retained interest in the REIT, on a pro rata basis between the REIT and HII. The option may be exercised by the underwriters for a period of 30 days following closing of the offering and, if exercised in full, will increase the total gross proceeds of the offering to the REIT to $169,600,000.

The offering is being underwritten by a syndicate of underwriters led by TD Securities Inc. and including National Bank Financial Inc., Desjardins Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Dundee Securities Corporation and Beacon Securities Ltd. The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the Units under the symbol "HCR.UN", subject to fulfilling all of the requirements of the TSX.

The offering is expected to close on May 25, 2010. The first distribution, for the period from closing to June 30, 2010, will be paid on July 15, 2010 and, assuming a closing date of May 25, 2010, will be in the amount of $0.09705. per Unit. The REIT intends to make subsequent monthly cash distributions in the amount of $0.07917 per Unit commencing on August 15, 2010 for the month of July 2010. Copies of the final prospectus will be available on the System for Electronic Documents Analysis and Retrieval (SEDAR) at www.sedar.com.

These securities 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.

This press release contains forward-looking statements which reflect the REIT'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. The REIT disclaims any obligation to update these forward-looking statements, except as required by law.

About Homburg Canada Real Estate Investment Trust

Homburg Canada Real Estate Investment Trust is a recently created unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec.

Upon closing of the offering, the REIT, which is managed internally, will own 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.


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

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