Homburg acquires Baltic portfolio for EUR 185m

Homburg Invest has finalised the acquisition of the Baltic portfolio from SEB Group for EUR 185 mln. The transaction was concluded in late December after being announced in April last year. The portfolio consists of 54 properties located in Estonia, Latvia and Lithuania.

The acquired portfolio consists of 54 assets instead of the original 63 properties previously announced, as other parties exercised pre-emptive rights to some of the properties. Homburg said 39 of the properties 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 with a long-term debt financing of EUR 134 mln from SEB Merchant Bank, with the remainder of the purchase price being paid in cash.

Homburg Invest said the acquisition of the sale-and-leaseback portfolio was consistent with its stated policies for growth and geographic diversification. 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 Baltics 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'.

With the closing of this acquisition, Homburg Invest has finalised all its planned acquisitions and dispositions for the calendar year 2007. The net increase to the asset base of Homburg Invest Inc. as of 1 January 2007 amounts to approximately CAD $1.7 bn (EUR 1.1 bn), while the company has about CAD $4 bn in total assets.

Homburg Invest, with its head office in Halifax, Nova Scotia, owns and develops retail, industrial and residential apartment and townhouse properties throughout Canada, the US and Europe.