TORONTO, April 9 (Reuters) - Homburg Invest, which owns and operates real estate in Canada, the United States and Europe, said on Friday it plans an initial public offering of its Canadian real estate investment trust.
Halifax, Nova Scotia-based Homburg said the IPO was the first step in executing its previously announced plan to spin off its real estate assets into five geographically based companies.
Homburg did not say how much it plans to raise with the offering or when it was expected to close.
The proposed offering is being handled by a syndicate of underwriters led by TD Securities Inc, and including National Bank Financial Inc, Desjardins Securities Inc, CIBC World Markets Inc, Scotia Capital Inc, Canaccord Financial Ltd, HSBC Securities (Canada) Inc, Dundee Securities Corp and Beacon Securities Ltd.
Homburg owns a portfolio of real estate including office, retail, industrial and residential apartment and townhouse properties.
Real estate investment trusts, or REITs are happy to raise capital these days because of rising valuations, as they are rewarded by investors seeking higher returns than those on Canada's benchmark 10-year bond, currently at about 3.65 percent. Some say REITs may return more than 10 percent.
($1=$1.00 Canadian)
(Reporting by Pav Jordan; editing by Rob Wilson)
((pav.jordan@reuters.com; +1 416 941 8163; Reuters Messaging: pawel.jordan.reuters.com@reuters.net)
Keywords: HOMBURG/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Halifax, Nova Scotia-based Homburg said the IPO was the first step in executing its previously announced plan to spin off its real estate assets into five geographically based companies.
Homburg did not say how much it plans to raise with the offering or when it was expected to close.
The proposed offering is being handled by a syndicate of underwriters led by TD Securities Inc, and including National Bank Financial Inc, Desjardins Securities Inc, CIBC World Markets Inc, Scotia Capital Inc, Canaccord Financial Ltd, HSBC Securities (Canada) Inc, Dundee Securities Corp and Beacon Securities Ltd.
Homburg owns a portfolio of real estate including office, retail, industrial and residential apartment and townhouse properties.
Real estate investment trusts, or REITs are happy to raise capital these days because of rising valuations, as they are rewarded by investors seeking higher returns than those on Canada's benchmark 10-year bond, currently at about 3.65 percent. Some say REITs may return more than 10 percent.
($1=$1.00 Canadian)
(Reporting by Pav Jordan; editing by Rob Wilson)
((pav.jordan@reuters.com; +1 416 941 8163; Reuters Messaging: pawel.jordan.reuters.com@reuters.net)
Keywords: HOMBURG/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.