HOMBURG INVEST SELLS PARTNERSHIP INTEREST TO RESOLUTION REAL ESTATE

Sale is a part of value creation strategy

Shares issued: Class A - 17,079,089   Class B - 3,131,138

HALIFAX, Oct. 22 /CNW/ - (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.

%SEDAR: 00013330E

For further information:

Mr. Richard Homburg
Chairman and CEO
Homburg Invest Inc.
[phone]

or

J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855