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Homburg Invest Inc. (AMS:HII) Halifax, Nova Scotia, November 3, 2008 (TSX: HII.A & HII.B and NYSE Euronext Amsterdam: HII)- Mr. Richard Homburg, Chairman and CEO of Homburg Invest Inc. ("Homburg Invest" or "HII") announces that the previously reported proposed joint venture with Cedar Shopping Centres Inc. ("Cedar") to purchase 32 properties has been cancelled. Mr. Homburg states that:
"HII had substantially completed its due diligence in respect of the proposed joint venture, however recent unprecedented financial events have caused the virtual collapse of world capital markets directly causing the cancellation of this joint venture. Unless governments get banks back to the business of lending, business will be forced to re-evaluate and make harsh decisions in order to deal with current economic circumstances."
The joint venture had proposed the acquisition of 27 properties in Ohio (primarily drug-store anchored), 2 properties in Pennsylvania and 3 properties in New York State totaling slightly more than 1 million square feet for an approximate cost of US$ 128.9 million. The joint venture had been scheduled to close on or about December 15, 2008 subject to due diligence and final Board of Directors approval and saves HII its capital contribution of approximately USD $50 million.
Homburg, with its head office in Halifax, Nova Scotia, is an international real estate investment and development company that owns a diversified portfolio of quality real estate, including office, retail, industrial and residential apartment and townhouse properties in Canada, Europe and the United States. The Company also owns land assets for development in Calgary and Edmonton, Alberta; Montreal, Quebec; and Charlottetown, Prince Edward Island. In 2007, Homburg completed significant acquisitions totaling over approximately CAD$ 1.1 billion and as of December 31, 2007 has assets of over CAD$ 3.8 billion with an approximate aggregate of 18.2 million square feet of gross leasable area.
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For further information, please contact:
Mr. Richard Homburg, Chairman and CEO Homburg Invest Inc. 902-468-3395
or
Richard Stolle President and COO Homburg Invest Inc. 011 31 20 573 3855
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.
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