Richard Homburg, Chairman and Chief Executive Officer of Homburg Invest Inc. has announced that the company has sold its Nurnberg property in Germany.
Although the terms of the transaction were not disclosed, the effect of the sale is to remove approximately 102 million of long-term debt from the balance sheet of the company, as well as the primary asset, the property which was valued at approximately 12 million. The company expects that the transaction will result in a significant gain. The transaction closed December 31, 2010.
The Nurnberg property, which until recently was referred to as the Quelle Complex, was originally acquired by the company in June 2005. At year end 2009, pursuant to IFRS fair value accounting rules, the company wrote down the fair value of the property when the sole tenant of the property declared bankruptcy and then vacated the property on December 31, 2009.
"The sale of this property is excellent news for shareholders," said Richard Homburg, Chairman and Chief Executive Officer of Homburg Invest. "Together, we expect the sale of the property and associated debt to have a significant positive impact on our balance sheet and net asset value. This transaction improves our flexibility, and demonstrates that reducing our debt remains a priority."