Shares issued and outstanding: Class A - 148,945,498 Class B - 31,514,782
HALIFAX, Dec. 28 /CNW/ - Homburg Invest Inc. ("Homburg Invest" or "The
Company") announces that it has finalized its acquisition of the "Baltic"
portfolio consisting of 54 properties located in Estonia, Latvia and Lithuania
(the "Baltic's") from SEB Group ("SEB"). The transaction was previously
announced on April 26, 2007, when SEB and Homburg Invest entered into an
agreement to acquire the Baltic portfolio. Due to the exercise of pre-emptive
rights by third parties for certain of the properties, the acquired portfolio
consists of 54 properties instead of the original 63 properties previously
announced. With respect to the properties, 39 are occupied by SEB under
long-term leases and 15 properties are primarily leased to other tenants or
have short-term leases with SEB.
The transaction was completed at an aggregate purchase price of
approximately CAD 268,250,000 (EURO 185,000,000) with a long-term debt
financing of CAD 194,100,000 (EURO 134,000,000) from SEB Merchant Bank with
the remainder of the purchase price being paid in cash.
The acquisition by Homburg Invest of this sale and lease back portfolio
is consistent with its stated policies for growth and geographic
diversification. The timing is good due to strong economical growth in the
Baltic's with increased demand for office and retail space. The portfolio
consists primarily of larger properties with significant development potential
in attractive locations.
Richard Homburg, Chairman and CEO of Homburg Invest stated that "the
Homburg group has been active in the Baltic region for several years with a
local management company. The aim is to become a major player in the Baltic
market by developing and managing a diversified portfolio of projects. Based
on the existing infrastructure and good real estate opportunities in the
Baltic's at this time, we are very pleased to announce that the Company has
concluded this strategic acquisition. We believe that by having SEB as a
long-term lessee in quality real estate, the acquisition will be accretive to
Homburg Invest. It also gives the Company a platform for further expansion in
The SEB is a North European financial group for 400,000 corporate
customers and institutions, and 5 million private customers. SEB has a local
presence in the Nordic and Baltic countries, Germany, Poland, the Ukraine and
Russia and has a global presence through its international network in another
10 countries. The Group's total assets are estimated at SEK 1,934bn (approx.
CAD 320 billion) while estimated assets under management total SEK 1,262bn
(approx. CAD 209 billion). The Group has about 20,000 employees. Read more
about SEB at www.sebgroup.com.
The Baltic States have benefited from membership in the European Common
Market since 2004 and have all demonstrated growth above the European average.
Local currencies are pegged to the EURO.
Tremendous growth 2007
With the closing of this acquisition Homburg Invest Inc. has finalized
all of its announced acquisitions and dispositions for the calendar year 2007.
The net increase to the asset base of Homburg Invest Inc. as of 1st of January
2007 amounts to approximately CAD $1.7 billion, while the estimated total
asset base of the Company is now approximately CAD $4.0 billion in total
Homburg Invest, 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.
This news release may contain statements which by their nature are
forward looking and express the Company's beliefs, expectations or intentions
regarding future performance, future events or trends. Forward looking
statements are made by the Company in good faith, given management's
expectations or intentions however, they 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. Therefore, 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 of the information contained herein.
For further information:
For further information: Mr. Richard Homburg, Chairman and CEO, Homburg
Invest Inc., (902) 468-3395; J. Richard Stolle, President and COO, Homburg
Invest Inc., 31-20-573-3855