Alexis Nihon Real Estate Investment Trust

Alexis Nihon Real Estate Investment Trust
Homburg Invest Inc.

April 06, 2007 10:01 ET

Homburg Succeeds in Offer for Outstanding Units of Alexis Nihon Real Estate Investment Trust

HALIFAX, NOVA SCOTIA and MONTREAL, QUEBEC--(CCNMatthews - April 6, 2007) - Homburg Invest Inc. ("Homburg") (TSX:HII.A)(TSX:HII.B) and (AEX:HII) and Alexis Nihon Real Estate Investment Trust ("Alexis Nihon") (TSX: AN.UN) announced today that 20,663,699 units of Alexis Nihon, representing approximately 70% of the issued and outstanding units, have been tendered to the take-over offer made by Homburg Acquisition Inc. ("HAI"), a wholly-owned subsidiary of Homburg. Unitholders of Alexis Nihon who have tendered units to the offer will receive $18.60 in cash per unit. All conditions of the offer, which expired at midnight on April 5, 2007, were satisfied or waived. Together with the units owned by Homburg prior to the offer, Homburg and its affiliates now hold 25,938,238 units of Alexis Nihon, representing approximately 87% of the issued and outstanding units.

"We are happy with the support that our offer has received and very excited by this transaction which allows us to expand and diversify our presence in North America," said Richard Homburg, Chairman and Chief Executive Officer of Homburg. "Continued diversification both geographically and by real estate asset class are cornerstones of Homburg's growth strategy. This transaction allows us to rapidly increase our presence in eastern Canada: mainly in the key retail sector, but also in multi-residential properties, and the commercial office sector through the addition of the 1.4 million square foot Place Alexis Nihon property located in downtown Montreal. Coupled with our already important presence in Atlantic Canada and our strong commercial and residential pipeline in the booming Alberta market, the Alexis Nihon transaction significantly enhances Homburg's leading role in Canadian real estate," he added.

HAI has taken up the units tendered to the offer and will pay the depositary for the units within the time prescribed by law. Alexis Nihon unitholders who hold their units through a broker or other financial intermediary will receive payment of the purchase price through such broker or intermediary, while unitholders holding units in registered form will receive payment directly from the depositary.

In accordance with the support agreement entered into by Homburg and Alexis Nihon on February 19, 2007, Homburg intends to cause Alexis Nihon to call a special meeting of unitholders in May in order to effect a capital reorganization of Alexis Nihon pursuant to which the unitholders of Alexis Nihon (other than Homburg and HAI) will exchange their units for redeemable units having a redemption price of $18.60 in cash. Subsequently, Homburg intends to have the Alexis Nihon units de-listed from the Toronto Stock Exchange and to cause Alexis Nihon to cease to be a reporting issuer in Canada.

Alexis Nihon will suspend regular monthly distributions and will not declare or pay monthly distributions in the future unless agreed to by Homburg.

Homburg's financial advisor is BMO Capital Markets and its legal advisor is Osler, Hoskin & Harcourt LLP. The financial advisor of Alexis Nihon is CIBC World Markets and Fasken Martineau DuMoulin LLP is acting as its legal advisor.

About Homburg

Homburg, 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 United States and Europe.

About Alexis Nihon

Alexis Nihon currently owns interests in 65 office, retail, and industrial properties, including a 426 unit multi-family residential property, located in the greater Montreal area and the National Capital Region. Alexis Nihon's portfolio has an aggregate of 9.1 million square feet of leasable area, of which 0.4 million square feet is co-owned.

Forward-looking Statements

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.

Contact Information

  • Homburg Invest Inc.
    Mr. Richard Homburg,
    Chairman and CEO
    (902) 468-3395
    Alexis Nihon
    Guy Charron
    Executive Vice-President and Chief Operating Officer
    (514) 931-2591