HOMBURG CANADA REAL ESTATE INVESTMENT TRUST CLOSES $85.5 MILLION PUBLIC
OFFERING

Not for dissemination in the United States or distribution through United States news or wire services.

MONTREAL, Oct. 27 /CNW/ - Homburg Canada Real Estate Investment Trust (the "REIT") (TSX: HCR.UN) announced today the closing of its previously announced public offering of units of the REIT (the "Units") at a price of $11.00 per Unit. The syndicate of underwriters co-led by TD Securities Inc., CIBC and Desjardins Securities Inc. have partially exercised their over-allotment option to purchase an additional 952,100 Units, resulting in a total of 7,772,100 Units being issued today for gross proceeds of approximately $85,493,100.

"We are pleased with the market response to this offering," said Jim Beckerleg, President and Chief Executive Officer of the REIT. "This financing puts us in an excellent position to pursue our growth strategies while maintaining a strong balance sheet. We are actively looking for new opportunities to acquire properties that will meet our growth requirements and that will provide stable, long-term income streams for our unitholders."

The REIT will use the net proceeds from the offering to fund future acquisitions, for general trust purposes and to repay certain indebtedness. The offering of the Units was completed on a bought deal basis.

This press release is not an offer of securities for sale in the United States.  The units being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.

About Homburg Canada Real Estate Investment Trust

Homburg Canada Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, the REIT owns a portfolio of Canadian income-producing commercial properties, comprised mainly of retail and office properties with certain industrial properties, as well as certain income-producing multi-family residential properties. The properties comprise    approximately 6.6 million square feet of commercial gross leasable area and 1,725 multi-family residential units located in Quebec, Atlantic Canada, Western Canada and Ontario. 

For further information:

James W. Beckerleg		Paul de la Plante
President and Chief Executive Officer		NATIONAL Public Relations
Homburg Canada Real Estate Investment Trust		514-843-2332
514-841-9725 ext. 358
Gordon G. Lawlor, CA
Chief Financial Officer
Homburg Canada Real Estate Investment Trust
514-841-9725 ext. 313