Homburg shops in the Baltic region with EUR 197m buy

Swedish company SEB has sold its real estate portfolio in Estonia, Latvia and Lithuania to Homburg Invest for EUR 197 mln. Homburg said in a statement that the transaction involves 63 properties, of which 47 will be occupied by SEB Group under long term leases and 16 of which are primarily leased to other tenants or which SEB Group intends to occupy on short term leases. The transaction is expected to close during the third quarter of 2007.

Debt financing will be provided up to 80% of the aggregate purchase price. 'The acquisition by Homburg Invest of this sale-and-leaseback portfolio is consistent with its stated policies for growth and geographic diversification. The timing is good due to strong economic growth with increased demands for office space. The portfolio consists primarily of larger properties with significant potential in attractive locations.

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', said Richard Homburg, chairman and ceo of Homburg Invest.

The Baltic states have benefited from membership in the European Common Market since 2004. All have demonstrated growth above the European average. Local currencies are pegged to the euro. 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 US and Western Europe.