Homburg Invest announces sale and purchase of joint venture interests in the United States
(Thomson Reuters ONE) -
Transactions to Facilitate Value-Generating Reorganization Strategy
Shares issued: Class A - 17,094,490 Class B - 3,148,538
HALIFAX, Nova Scotia. February 15, 2011 - (TSX: HII.A, HII.B) (NYSE Euronext
Amsterdam: HII) - Richard Homburg, Chairman and Chief Executive Officer of
Homburg Invest Inc. ("Homburg Invest" or the "Company") announced today that,
pursuant to the exercise of certain "buy-sell" provisions in certain joint
venture agreements with Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar"), the
Company will sell its 80% interest in one of the nine properties owned by the
Homburg/Cedar joint ventures (Homburg 80%-Cedar 20%) to Cedar. Homburg Invest
will also purchase Cedar's 20% interest in the remaining eight joint venture
properties. The transactions will facilitate Homburg Invest's ability to fully
implement its strategy in the US.
"More than a year ago, we announced a strategic initiative to reorganize our
income-producing properties into four geographic entities and a development
company," said Richard Homburg. "These transactions represent a critical step
in our reorganization strategy in the US, which will create value for our
shareholders.
Sale of 80% Interest in One Property
Homburg Invest has agreed to sell its 80% interest in Meadows Marketplace in
Hershey, Pennsylvania for approximately $5.34 million.
Acquisition of 20% Interests in Eight Properties
Homburg Invest has also agreed to buy Cedar's 20% interest in eight properties
presently owned by the Homburg/Cedar joint ventures for approximately $9.66
million. Owning 100% of these properties will facilitate Homburg Invest's
ability to fully implement its reorganization strategy in the U.S. The Company
will acquire the following seven properties in Pennsylvania and one in
Massachusetts, all of which are supermarket anchored:
* Aston Center, Aston, PA
* Ayr Town Center, McConnellsburg, PA
* Scott Town Center, Bloomsburg, PA
* Stonehedge Square, Carlisle, PA
* Pennsboro Commons, Enola, PA
* Parkway Plaza, Mechanicsburg, PA
* Spring Meadow Shopping Center, West Lawn, PA
* Fieldstone Marketplace, New Bedford, MA
Upon closing of all the respective transactions, which will be subject to
customary closing conditions, including among other things, approval by lenders,
the balance of amounts payable by Homburg Invest net will be approximately $4.32
million to Cedar and the Cedar/Homburg joint ventures will be terminated.
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.
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
PDF version of the press release:
http://hugin.info/138798/R/1489268/424593.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
[HUG#1489268]
Unternehmensinformation / Kurzprofil:
Datum: 15.02.2011 - 17:16 Uhr
Sprache: Deutsch
News-ID 51509
Anzahl Zeichen: 5613
contact information:
Town:
Halifax
Kategorie:
Business News
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