Homburg Invest Sells and Purchases Joint Venture in the US

Richard Homburg, Chairman and Chief Executive Officer of Homburg Invest Inc. (Company) announced that, pursuant to the exercise of certain "buy-sell" provisions in certain joint venture agreements with Cedar Shopping Centers, Inc. (Cedar), the Company will sell its 80% interest in one of the nine propertiesowned by the Homburg/Cedar joint ventures (Homburg 80%-Cedar 20%) to Cedar. Homburg Invest will also purchase Cedar's 20% interest in the remaining eight joint venture properties. The transactions will facilitate Homburg Invest's ability to fully implement its strategy in the US. 

"More than a year ago, we announced a strategic initiative to reorganize our income-producing properties into four geographic entities and a development company," said Richard Homburg. "These transactions represent a critical step in our reorganization strategy in the US, which will create value for our shareholders.

Sale of 80% Interest in One Property

Homburg Invest has agreed to sell its 80% interest in Meadows Marketplace in Hershey, Pennsylvania for approximately $5.34 million. 

Acquisition of 20% Interests in Eight Properties

Homburg Invest has also agreed to buy Cedar's 20% interest in eight properties presently owned by the Homburg/Cedar joint ventures for approximately $9.66 million. Owning 100% of these properties will facilitate Homburg Invest's ability to fully implement its reorganization strategy in the U.S. The Company will acquire the following seven properties in Pennsylvania and one in Massachusetts, all of which are supermarket anchored: 

•  Aston Center, Aston, PA •  Ayr Town Center, McConnellsburg, PA •  Scott Town Center, Bloomsburg, PA •  Stonehedge Square, Carlisle, PA •  Pennsboro Commons, Enola, PA •  Parkway Plaza, Mechanicsburg, PA •  Spring Meadow Shopping Center, West Lawn, PA •  Fieldstone Marketplace, New Bedford, MA 

Upon closing of all the respective transactions, which will be subject to customary closing conditions, including among other things, approval by lenders, the balance of amounts payable by Homburg Invest net will be approximately $4.32 million to Cedar and the Cedar/Homburg joint ventures will be terminated.

 

on February 15, 2011