Strategy
Through its association with the Homburg Group, Homburg Invest Inc brings
together a wide range of management expertise for acquisition, development,
construction and property management to minimize risk to our investors, maximize
shareholder profitability and to maintain our base of satisfied clients in each
sector.
Value Proposition
Homburg Invest grows value by managing, acquiring and developing high quality
assets that return consistent increases in property and development revenues
over the medium to long term. That growth philosophy is underpinned by a culture
of risk mitigation that is reflected in all aspects of our business
We are diversified by geography, sector of activity and property
type:
- Significant income and property portfolios in Canada, the
United States and Europe.
- Active in residential, commercial, retail and industrial
sectors.
- Focused on sale and leaseback transactions with built-in
rent increases for stable, predictable cash flow.
- Focused on development properties with major long-term
upside potential.
Risk mitigation is built into other aspects of the business as
well.
- For all of its major properties, Homburg focuses on
signing high quality tenants with long term leases.
- Homburg outsources management of all of its properties to
Homburg Canada Inc. for a fixed annual service fee that covers all operating and
cost risk.
- The risk of cross-collateralization between properties is
limited by a structure of limited partnerships and non-recourse financings.
In addition to its core income properties, Homburg maintains a portfolio of
properties and land for development and redevelopment. Proceeds from the sale of
these properties augment the stable but growing income from Homburg’s income
properties.
Expanding the portfolio
Any property acquired must be accretive by adding to shareholder value. A
consistent focus will be the creditworthiness and predictable quality of cash
flow from rentals. Location, traffic count, demographics and current and
potential competition will be critical factors as well. Utilizing highly
experienced management company staff, we will engage in thorough and thoughtful
due diligence using construction and engineering, legal, auditing, leasing and
property management staff as well as third-party experts, where appropriate.
Investment Policy
Homburg Invest Inc. will follow an active acquisition policy whereby –
observing the criteria stated below – investments will be made in Canadian, U.S.
and European properties through both direct and indirect participation.