Homburg Invest sells partnership interest to Resolution Real Estate
(Thomson Reuters ONE) -
Sale is a part of value creation strategy
Shares issued: Class A - 17,079,089 Class B - 3,131,138
HALIFAX, Nova Scotia. October 22, 2010 - (TSX: HII.A & HII.B and NYSE Euronext
Amsterdam: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today
that HII has sold its 50% interest in Homburg SNS Property Finance Limited
Partnership (or the "partnership") to Resolution Real Estate Limited ("RRE"),
for $12.4 million in promissory notes. The sale removes approximately $60
million in long-term debt and other liabilities from HII balance sheet.
The transaction results in three Canadian properties ("the properties") and
associated liabilities being transferred to RRE, a newly created company
incorporated under the laws of the Province of Nova Scotia, Canada. RRE is
wholly owned by private companies controlled by HII Chairman and Chief Executive
Officer, Richard Homburg. The final sale price of the partnership interest is
subject to independent appraisal and subsequent price adjustments (should the
independent appraisal so determine) to ensure that Homburg Invest and its
shareholders receive full fair market value for the properties. To ensure the
interests of all shareholders are satisfied by the transaction, the sale and
final price are subject to the overview and approval of an independent committee
of the Board of Directors of HII.
"This sale fits perfectly within the context of our strategy of creating value
by spinning off properties into independent entities. By selling its interest in
the joint venture to a private company, HII is able to monetize the current
value of the properties, strengthen the Company's balance sheet and increase our
financial capacity," said Richard Stolle, President and Chief Operating Officer
of Homburg Invest. "The properties in question are non income-producing
development properties that necessitate, for the most part, a long-term
investment horizon and additional financing, conditions which can more easily be
met by a privately held company."
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality
commercial real estate including office, retail, industrial and development
properties throughout Europe and the United States, as well as 41.3% of the
units of Homburg Canada Real Estate Investment Trust. The head office of the
Company is located in Halifax, Nova Scotia.
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,
which 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. 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 the information contained herein.
-30-
For further information, please contact:
Mr. Richard Homburg
Chairman and CEO
Homburg Invest Inc.
(902) 468-3395
or
J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855
[HUG#1454639]
PDF version of the press release:
http://hugin.info/138798/R/1454639/394834.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Homburg Invest Inc. via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 22.10.2010 - 20:59 Uhr
Sprache: Deutsch
News-ID 46085
Anzahl Zeichen: 0
contact information:
Town:
Halifax
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 233 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Homburg Invest sells partnership interest to Resolution Real Estate"
steht unter der journalistisch-redaktionellen Verantwortung von
Homburg Invest Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
