Shares issued: Class A - 16,790,018 Class B - 3,150,239
HALIFAX, Feb. 26 /CNW/ - (TSX: HII.A & HII.B and NYSE Euronext Amsterdam:
HII) - Mr. Richard Homburg, Chairman and CEO of Homburg Invest Inc. ("HII" or
"Homburg Invest") is pleased to announce that Homburg Invest has received
final approval from the Dutch regulator, The Netherlands Authority for the
Financial Markets (Autoriteit Financiele Markten) of a Prospectus related to
the new Homburg Capital Securities A.
The Homburg Capital Securities A have a 99 year life, and bear interest
at 9.5% per annum. Homburg Invest may at its sole option redeem the Homburg
Capital Securities A in whole or in part after 5 years, and thereafter at any
of the quarterly interest payment dates. Homburg Invest has the option to
settle any and all of the quarterly interest payments by issuing Class A
Preferred shares rather than cash.
Each Homburg Capital Securities A has a face value of EUR 1,000 and will
be sold in a minimum subscription of 5 securities, or EUR 5,000. The
Prospectus related to the Homburg Capital Securities A is for a minimum of
25,000 to a maximum of 75,000 Homburg Capital Securities A, for an aggregate
principal amount of EUR 25,000,000 to EUR 75,000,000 (CAD $39,500,000 to CAD
It is the intention of Homburg Invest to apply for a listing of the
Homburg Capital Securities A on the NYSE Euronext Amsterdam, within two years
of the original issue.
At inception, the Homburg Capital Securities A will have a debt component
of approximately 2.0%, based on the present value of the future principal
repayment, and an equity component of approximately 98% for accounting
purposes, and will be subordinate to Homburg Invest's existing Homburg
Mortgage Bonds and Homburg Bonds and will rank senior to Homburg Invest's
Class A Subordinate Voting shares and Class B Multiple Voting shares. The
entire interest payment will be an expense for Canadian Income Tax purposes.
Homburg Invest intends to utilize the funds raised to retire existing
debt, strengthen its balance sheet, and for general purposes.
The Homburg Capital Securities A is the latest product to be sold by
Homburg Invest to the Dutch market and is a follow up to Homburg Invest's
hugely successful Bond program that has seen Homburg Invest raise
approximately CAD $675 million in the last 5 years.
The Homburg Capital Securities A are not being offered for sale in Canada
and have not been and will not be qualified for distribution in Canada by the
filing of a prospectus with any securities regulatory authority or commission
Homburg Invest has received a positive determination from the Nova Scotia
Securities Commission, and has filed an application with the Alberta
Securities Commission for a similar determination that the Homburg Capital
Securities A, to be issued, are not part of a distribution to the public
within the applicable jurisdictions, and therefore a Prospectus will not be
required to be filed in Canada.
Shareholders, or other interested parties, wanting more details on
Homburg Capital Securities A or Homburg Invest's operations and risk factors
may do so at www.homburginvest.com.
Homburg Invest, with its head office in Halifax, Nova Scotia, is an
international real estate investment and development company that owns a
diversified portfolio of quality real estate, including office, retail,
industrial and residential apartment and townhouse properties in Canada,
Europe and the United States. Homburg Invest also owns land assets for
development in Calgary and Edmonton, Alberta; Montreal, Quebec; and
Charlottetown, Prince Edward Island. In 2007, Homburg Invest completed
significant acquisitions totalling over approximately CAD$ 1.1 billion and as
of September 30, 2008 has assets of over CAD$ 4.0 billion with an approximate
aggregate of 20.2 million square feet of gross leasable area.
This news release may contain statements which by their nature are
forward looking and express Homburg Invest's beliefs, expectations or
intentions regarding future performance, future events or trends. Forward
looking statements are made by Homburg Invest 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 Homburg Invest'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; Richard Stolle, President and COO, Homburg Invest
Inc., 011 31 20 573 3855