HALIFAX, May 26, 2011 /CNW Telbec/ - (TSX: HII.A HII.B) (AEX: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that the Company has received an instruction (the "Instruction") from the Authority for Financial Markets ("AFM") in the Netherlands requiring it to appoint two directors or officers who are residents of the Netherlands.

The AFM also instructed HII to remove HII's controlling shareholder Richard Homburg as a decision-maker and person of influence in the Company. The AFM did not specify any process or means by which the Instruction to remove Mr. Homburg as a person of influence should be carried out.

The Board of Directors is taking steps to comply with those elements of the Instruction that it can legally undertake, such as submitting candidates to the AFM for Netherlands-based directors. HII cannot comply with any aspect of the Instruction that is not enforceable under, or would result in a breach of, Canadian or Dutch law.  The Board of Directors of HII cannot itself legally reduce the control Mr. Homburg exercises over HII through his shareholdings nor can it compel Mr. Homburg to reduce his control.  The Board has no authority under HII's governing law, the Alberta Business Corporations Act, to require Mr. Homburg or any other shareholder to reduce that holder's ownership in HII, or to not vote that holder's shares.  Further, HII cannot restrict or in any manner vary the voting rights that attach to those shares. As a consequence, HII is left in the difficult position of being unable to carry out these aspects of the Instruction.

In its Instruction to the Company, the AFM relies on information it apparently received from Dutch authorities and from Mr. Homburg about tax assessments, which have not been resolved and which are being contested by Mr. Homburg, and other personal matters between Mr. Homburg and the Dutch tax authorities.

"HII is vigorously contesting the AFM Instruction, which is based on a dispute between the Dutch tax authorities and a private individual (Mr. Homburg)," said Jan Schöningh, President and Chief Executive Officer of HII. "HII will continue to explore all possible recourses available to it in order to protect HII and its stakeholders. I want to reassure shareholders that there is no material financial impact of this Instruction on the Company and that we continue to focus on building value for shareholders."

About Homburg Invest

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.

Forward-looking Statements

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.


For further information:

Paul de la Plante,
NATIONAL Public Relations

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