Homburg Invest Inc. provides update



    
         Shares issued: Class A - 144,076,448  Class B - 31,514,782

    HALIFAX, Aug. 20 /CNW/ - (TSX: HII.A & HII.B and AEX:HII) - Homburg Invest
Inc. ("HII" or the "Company") reported a week ago its most profitable six
month results in the Company's history. The Company anticipates a further
strengthening of its net income from continuing operations and expected net
sale proceeds from development properties. This is expected to increase
shareholder equity and strengthen the balance sheet and cash position of HII.
    On August 3, 2007, the Company announced an increased semi annual dividend
of $0.24 per share payable September 30, 2007. The annualized $0.48 dividend
represents an 8.8% dividend yield based on the Class A share closing price of
$5.45 on August 3, 2007.

    Sale of Assets

    As previously announced, the Company intends to sell five assets under
construction from its $3.0 billion CDN development pipeline. Anticipated gross
sales revenue are expected to total $500.0 million CDN, with an anticipated
pretax profit on sales of $150.0 million CDN which is expected to yield, over
the next year, approximately $132.0 million CDN pretax in the third quarter
and $5.0 million CDN in the fourth quarter of 2007 and $13.0 million CDN
pretax in the first six months of 2008.

    SEB Portfolio in the Baltics

    As previously announced the Company intends to acquire 63 properties
located in Estonia, Latvia, and Lithuania (the Baltics) from Stockholm, Sweden
based SEB Group. The acquisition will consist of 47 properties which will be
occupied by SEB Group under long term leases, and 16 properties which are
primarily leased to other tenants, or which SEB Group intends to occupy on
short-term leases.
    The intended acquisitions have been structured to close in stages
organized by the country that the assets are in, over the third and fourth
quarters of 2007. The properties will be acquired at a total price of
197 million (euro) (approximately $280 million CDN) with debt financing
funding up to 80 per cent of the total purchase price.

    Cedar Shopping Centers Inc. Joint Ventures

    As previously announced, the Company has entered into an agreement with
Cedar Shopping Centers Inc. ("Cedar"), a U.S. real estate investment trust, as
a joint venture partner to own nine shopping centres, located in Massachusetts
and Pennsylvania, that are presently owned or contracted to be owned and
managed by Cedar.
    The total asset value of the joint venture project is approximately
$170 million USD of which the Company will retain an 80% share or
approximately $136 million USD. This acquisition will be financed with
existing and pending first mortgage financing on the joint venture properties
totaling $107 million USD of which the Company's share is approximately $86
million USD. The transaction is expected to close in the fourth quarter of
2007.

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    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.

    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein. Statements in this press release may
    constitute "forward looking statements". Words like "will", "intends",
    "anticipates" or "expects" and similar expressions, as they relate to the
    Company or its management, are intended to identify forward looking
    statements. Such statements reflect the Company's current views with
    respect to future events and a re subject to certain risks, uncertainties
    and assumptions. There are many factors which may cause the Company's
    actual results, performance or achievements to vary materially from those
    that may be expressed or implied in any forward looking statements. The
    Company does not intend nor does it assume any obligation to update any
    forward looking statements.
    %SEDAR: 00013330E




For further information:

For further information: Mr. Richard Homburg, Chairman and CEO, (902)
468-3395; Mr. Michael Arnold, CA, Vice Chairman, (902) 566-1153; For
information on Homburg Invest Inc., visit our website at
www.homburginvest.com.

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Homburg Invest Inc.

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