Shares issued and outstanding : Class A - 148,945,498 Class B - 31,514,782
HALIFAX - Homburg Invest Inc. ("Homburg Invest" or "The Company") announces that it has finalized its acquisition of the "Baltic" portfolio consisting of 54 properties located in Estonia, Latvia and Lithuania (the "Baltic's") from SEB Group ("SEB"). The transaction was previously announced on April 26, 2007, when SEB and Homburg Invest entered into an agreement to acquire the Baltic portfolio. Due to the exercise of pre-emptive rights by third parties for certain of the properties, the acquired portfolio consists of 54 properties instead of the original 63 properties previously announced. With respect to the properties, 39 are occupied by SEB under long-term leases and 15 properties are primarily leased to other tenants or have short-term leases with SEB.
The transaction was completed at an aggregate purchase price of approximately CAD 268,250,000 (EURO 185,000,000) with a long-term debt financing of CAD 194,100,000 (EURO 134,000,000) from SEB Merchant Bank with the remainder of the purchase price being paid in cash.
The acquisition by Homburg Invest of this sale and lease back portfolio is consistent with its stated policies for growth and geographic diversification. The timing is good due to strong economical growth in the Baltic's with increased demand for office and retail space. The portfolio consists primarily of larger properties with significant development potential in attractive locations.
Richard Homburg, Chairman and CEO of Homburg Invest stated that "the Homburg group has been active in the Baltic region for several years with a local management company. The aim is to become a major player in the Baltic market by developing and managing a diversified portfolio of projects. Based on the existing infrastructure and good real estate opportunities in the Baltic's at this time, we are very pleased to announce that the Company has concluded this strategic acquisition. We believe that by having SEB as a long-term lessee in quality real estate, the acquisition will be accretive to Homburg Invest. It also gives the Company a platform for further expansion in this region".
The SEB is a North European financial group for 400,000 corporate customers and institutions, and 5 million private customers. SEB has a local presence in the Nordic and Baltic countries, Germany, Poland, the Ukraine and Russia and has a global presence through its international network in another 10 countries. The Group's total assets are estimated at SEK 1,934bn (approx. CAD 320 billion) while estimated assets under management total SEK 1,262bn (approx. CAD 209 billion). The Group has about 20,000 employees. Read more about SEB at www.sebgroup.com.
The Baltic States have benefited from membership in the European Common Market since 2004 and have all demonstrated growth above the European average. Local currencies are pegged to the EURO.
Tremendous growth 2007
With the closing of this acquisition Homburg Invest Inc. has finalized all of its announced acquisitions and dispositions for the calendar year 2007. The net increase to the asset base of Homburg Invest Inc. as of 1st of January 2007 amounts to approximately CAD $1.7 billion, while the estimated total asset base of the Company is now approximately CAD $4.0 billion in total assets.
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.
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. The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
For further information
Mr. Richard Homburg, Chairman and CEO, Homburg Invest Inc., (902) 468-3395
J. Richard Stolle, President and COO, Homburg Invest Inc., 31-20-573-3855
Source : Homburg Invest Inc.
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