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HOMBURGINVEST www.homburg.com

In today’s evolving marketplace, the logical act of trust can be one of a company’s hardest resources to measure or to manage. Rob Harris explains how Homburg Invest Inc. is one company that knows the true value of trust

Trust

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he word “trust” can have many different levels of meaning. A position of trust can be inferred by law, and confidence is placed in that person or entity making them the nominal owner of the property to be held or used for the benefit of others. Trust can also mean that one has a firm belief in the reliability or strength of someone or something. Trust can

also be a duty, a state of being responsible for someone or something. Over the past few years the commercial real estate market has seen some

turbulent times. Many firms that were not equipped to handle the violent financial storms have passed away. However, the companies that have survived and weathered the storms have done so because of quality management skills and solid organizational planning. One such company is Homburg Invest Inc.

The chief executive of Homburg Invest is Dr. Richard Homburg, who is known for his ability not only as a quality entrepreneur but also as a team builder, surrounding himself with talented and experienced management. Homburg Invest is a real estate investment company with over C$3.1 billion in assets located throughout Canada, the United States and Europe. Dr. Homburg is committed to the well-being of this company. He and his management team own more than 50 percent of the available Homburg stock, which is traded on the Toronto Stock Exchange and on the NYSE Euronext in Amsterdam. According to the company’s 2009 financial statement, it owns 249 properties with over 19.7 million square feet of space, with four main classes of rental space available: office, retail, industrial and multi-family residential.

Currently Homburg Invest has a new development project slated to begin in Calgary called Cristal Towers. This undertaking is a planned condominium project that will be located in the Southwest district. This project has met developmental approval by the City of Calgary, with most of the initial planning and engineering having been completed. When it is completed, this structure will have 31 floors and house 214 units. The design of the building is a glass and concrete structure with a curved outer face, and the lot itself will be fully landscaped with a courtyard to give the ground floor a garden-type ambience.

In today’s evolving marketplace, the logical act of trust can be one of a company’s hardest resources to measure or to manage. Rob Harris explains how Homburg Invest Inc. is one company that knows the true value of trust

Homburg Invest

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http://www.dcm-mechanical.com

Homburg Invest

Homburg Invest recently completed a two-tower AA-class office building known as Homburg/Harris. Constructed of glass and concrete, these towers, standing 20 and 10 stories tall, are located in the core downtown district of Calgary and contain 635,000 square feet of leasable area. Before the completion of the project, Homburg Invest sold these buildings to a third party but continued on as the project developer for the purchaser until completion. All the office space has been completely leased, as well as all the retail space available in building one. The company has many other exciting projects in the developmental stage, such as the Viger Montreal resort area.

Some of the most exciting news from Homburg Invest is its recent announcement that it would be reorganizing along geographic lines. This reorganization will create five new entities, the first of which will transfer the firm’s holdings in Canada into a real estate investment trust (REIT) named Homburg Canada. REITs were created in the 1960s as a way to make investments in large-scale income-producing real estate available to investors of all kinds. REITs created a liquid security that could be sold and traded just like mutual funds in the securities market. In the past ten years REITs have seen their market capitalization grow from $90 billion to over $200 billion.

These investment funds must adhere to strict regulations: 75 percent of the total assets must be in real estate; 75 percent of the gross income must come from rents on real property or mortgages

on real property; and the trust must distribute at least 90 percent of its taxable income to its shareholders. The Homburg Canada REIT will initially contain over C$1 billion in assets, with 6.6 million square feet of commercial gross leasable area and 1,725 multi-family residential units. Consisting of 76 income-producing commercial properties and 43 residential properties, these buildings are located in Quebec, Atlantic Canada, Western Canada and Ontario. Dr. Homburg will be chairman of the Board of Trustees, and the Homburg Group will retain 55 percent ownership of the new REIT, but the majority of the board is independent of the Homburg Group. Homburg Canada REIT is headquartered in Montreal with its own distinct management team.

To further the company’s organizational goals, Homburg Invest will be creating Homburg Development Company to hold Homburg’s Canadian land holdings. Also, the firm will be creating another corporate entity to hold all its Western European assets. This subsidiary will eventually be taken public on the NYSE Euronext Amsterdam stock exchange or other European trading entities. Homburg Invest’s Eastern European assets will be transferred to a separate company, while the company’s initial plans are to keep all US assets with the parent company. The ultimate goal with this restructuring is to attract local investment based on asset classification. Also, with this new structure Homburg Invest ensures that the company’s assets are fully valued and understood by the geographical area they are located in.

As with any great corporation, the process of management can be overwhelming at times. The challenges that companies face are many. Managers must lead their teams with courage and inspiration, not unlike a captain on a ship during a storm at sea. Just as the crew of a ship trusts their officers to lead them through these violent storms, stakeholders of corporations trust their managers to guide them through uncertain economic times. Homburg Invest has weathered the recent unpredictable economic times and upheld its duties of trust and commitment to its stakeholders. The company is equipping itself with a vision for the future to lead the firm with new organizational goals and structures that will create a profitable framework for years to come. www.homburg.com

D.C.M. Mechanical Ltd. and its staff have built

a strong reputation throughout the Albertan

Mechanical Industry for our quality of service

and workmanship since 1987. Our dedication to

quality, detail and technical expertise has earned

D.C.M. the honor of receiving the 2000 Premier’s

Award of Excellence of the Alberta Research

Council Building. Our philosophy in health and

safety is that each member of our team, from

managers to the individual worker, is of primary

importance and is responsible and accountable

for safety on the job. This accountability and

dedication gained D.C.M. the Certificate of

Recognition in Safety in 2008.

D.C.M. Mechanical Ltd.

HOMBURGINVEST www.homburg.com