HOMBURG INVEST INC. - AFM

This prospectus does not constitute an offering of securities in Canada. The securities described herein have not been and will
not be registered under the United States Securities Act of 1933, as amended, and, subject to certain exceptions, may not be
offered or sold within the United States or to, or for the account or benefit of U.S. persons. See Chapter 21 “Plan of Distribution
of the New Shares”.
Information has been incorporated by reference in this prospectus from documents filed with the securities commissions or
similar authorities in Canada. Copies of the documents incorporated herein by reference may be obtained on request without
charge from the Secretary of Homburg Invest Inc. at Suite 600, 1741 Brunswick Street, Halifax, Nova Scotia, B3J 3X8
(telephone: +1 902 468-3395) and are also available electronically at www.sedar.com.
PROSPECTUS
HOMBURG INVEST INC.
(incorporated under the laws of the province of Alberta, Canada)
July 5, 2007
Listing of up to 53,937,604 Class A Subordinate Voting Shares with no par value
This prospectus (“Prospectus”) constitutes a prospectus for the purpose of Article 3 of Directive
2003/71/EC (the “Prospectus Directive”) and has been prepared in accordance with Section 5:2 of the
Financial Supervision Act (Wet op het financieel toezicht) and the rules promulgated thereunder. This
Prospectus has been approved by and filed with the Autoriteit Financiële Markten (the “AFM”), the
financial markets authority of the Netherlands.
This Prospectus has been prepared for the sole purpose of seeking admission to trading on Eurolist, as
defined below, of up to 53,937,604 Class A Subordinate Voting Shares (the “Listing Shares”) of
Homburg Invest Inc. (“Homburg” or the “Company”). No offering of securities is being made
pursuant to this Prospectus.
The Company’s Class A Subordinate Voting Shares (the “Class A Shares”) are listed on the stock
market operated by Euronext Amsterdam N.V. (“Euronext”) under the name Eurolist by Euronext
Amsterdam (“Eurolist”) under the symbol “HII”. The Company’s Class A Shares and Class B
Multiple Voting Shares (the “Class B Shares”) are also listed on the Toronto Stock Exchange (the
“TSX”) under the symbols “HII.A” and “HII.B”, respectively. On May 3, 2007, the last trading day
prior to the announcement of the Offering, as defined below, the closing price of the Class A Shares
was $6.40 on the TSX and €3.90 on Eurolist.
The Company intends to apply for admission of the Listing Shares to trading on Eurolist. Trading on
Eurolist of the Listing Shares is expected to commence on or about July 11, 2007 (the “Euronext
Listing Date”) or as soon as possible thereafter.
An investment in Class A Shares is subject to certain risks, which should be considered by
prospective purchasers. See the “Risk Factors” section of this Prospectus.
The Listing Shares are comprised of (1) 36,200,000 Class A Shares (the “Offer Shares”) newly issued
by the Company pursuant to an offering (the “Offering”) to non-EEA residents of subscription
receipts in respect of Class A Shares on the basis of a prospectus issued in Canada on June 5, 2007
and subject to the terms thereof (2) 12,307,604 Class A Shares (the “Existing Shares”) issued by the
Company prior to the Offering and unrelated thereto, and (3) any Additional Shares, as described
hereafter.

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In connection with the Offering, the Company has granted to BMO Nesbitt Burns Inc., CIBC World
Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., TD Securities Inc., HSBC
Securities (Canada) Inc., Wellington West Capital Markets Inc. and Beacon Securities Ltd.
(collectively, the “Underwriters”) an option (the “Over-Allotment Option”) to cover over-allotments,
if any, and for market stabilization purposes, which may be exercised in whole or in part for a period
of 30 days from closing of the Offering, entitling them to purchase up to a maximum of 5,430,000
subscription receipts in respect of additional Class A Shares (the “Additional Shares”) on the same
terms as set out above. The underwriters will not effect market stabilization in Europe. Where
reference is made to the New Shares, this shall include the Offer Shares and any Additional Shares.
The disclosure contained in this Prospectus does not give effect to the Over-Allotment Option, except
where otherwise indicated.
The TSX has conditionally approved the listing of the subscription receipts and the Class A Shares
issuable pursuant to the subscription receipts offered on the basis of the a prospectus issued in Canada
on June 5, 2007. Listing on the TSX will be subject to the Company fulfilling all of the listing
requirements of the TSX on or before August 2, 2007.
The head and principal offices of Homburg are located at Suite 600, 1741 Brunswick Street, Halifax,
Nova Scotia B3J 3X8 and its registered office is located at 3700 Canterra Tower, 400 Third Avenue
S.W., Calgary, Alberta T2P 4H2, Canada.

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TABLE OF CONTENTS
1. PROSPECTUS SUMMARY ....................................................................................................................................................... 4
2. RISK FACTORS........................................................................................................................................................................ 20
3. IMPORTANT INFORMATION ............................................................................................................................................... 29
4. GLOSSARY OF TERMS .......................................................................................................................................................... 31
5. TERMS USED TO DESCRIBE HOMBURG AND ITS MANAGEMENT ........................................................................... 34
6. RELIANCE ON THIRD PARTY INFORMATION ................................................................................................................ 34
7. CURRENCY AND EXCHANGE RATE INFORMATION .................................................................................................... 35
8. DOCUMENTS INCORPORATED BY REFERENCE............................................................................................................ 35
9. PRESENTATION OF FINANCIAL STATEMENTS.............................................................................................................. 37
10. THE COMPANY....................................................................................................................................................................... 38
11. PROPERTY PORTFOLIO ........................................................................................................................................................ 50
12. MARKET DESCRIPTION........................................................................................................................................................ 62
13. MANAGEMENT OF HOMBURG ........................................................................................................................................... 68
14. RECENT DEVELOPMENTS ................................................................................................................................................... 95
15. THE ALEXIS NIHON ACQUISITION.................................................................................................................................. 100
16. ORGANIZATIONAL STRUCTURE ..................................................................................................................................... 103
17. DEBT OVERVIEW................................................................................................................................................................. 106
18. SELECTED FINANCIAL INFORMATION.......................................................................................................................... 109
19. CONSOLIDATED CAPITALIZATION ................................................................................................................................ 114
20. DESCRIPTION OF SHARE CAPITAL ................................................................................................................................. 114
21. PLAN OF DISTRIBUTION OF THE NEW SHARES .......................................................................................................... 121
22. USE OF PROCEEDS OF THE NEW SHARES..................................................................................................................... 123
23. SHARE TRADING INFORMATION .................................................................................................................................... 123
24. DISCLOSURE OF INFORMATION...................................................................................................................................... 124
25. MARKET REGULATION...................................................................................................................................................... 127
26. CERTAIN FEDERAL INCOME TAX CONSIDERATIONS ............................................................................................... 127
27. DUTCH COLLECTIVE INVESTMENT SCHEMES LICENSE .......................................................................................... 132
28. AUDITORS, TRANSFER AGENT AND REGISTRAR ....................................................................................................... 132
29. MATERIAL CONTRACTS .................................................................................................................................................... 132
30. INTEREST OF EXPERTS ...................................................................................................................................................... 133
31. PURCHASERS’ STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION......................................................... 133
32. INDEX TO FINANCIAL STATEMENTS ............................................................................................................................. 134
33. CONSENT OF GRANT THORNTON LLP........................................................................................................................... 135
34. AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS OF HOMBURG FOR THE FINANCIAL
YEAR ENDED DECEMBER 31, 2006, PREPARED IN ACCORDANCE WITH CANADIAN GAAP ........................... 136
35. AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS OF HOMBURG FOR THE FINANCIAL
YEAR ENDED DECEMBER 31, 2006 AND 31 DECEMBER 2005 PREPARED IN ACCORDANCE WITH IFRS ...... 159
36. UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF HOMBURG, 31 MARCH 2007,
PREPARED IN ACCORDANCE WITH CANADIAN GAAP ............................................................................................. 183
37. MANAGEMENT´S DISCUSSION AND ANALYSIS OF OPERATIONS AND FINANCIAL CONDITION OF
HOMBURG, THREE MONTHS ENDED MARCH 31, 2007, PREPARED IN ACCORDANCE WITH CANADIAN
GAAP ....................................................................................................................................................................................... 219
38. UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF HOMBURG, 31 MARCH 2007,
PREPARED IN ACCORDANCE WITH IFRS ...................................................................................................................... 237
39. AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF ALEXIS NIHON FOR THE YEARS ENDED
DECEMBER 31, 2006 AND 2005, PREPARED IN ACCORDANCE WITH CANADIAN GAAP ................................... 272
40. SCHEDULE OF SELECTED FINANCIAL INFORMATION OF ALEXIS NIHON FOR THE YEAR ENDED
DECEMBER 31, 2006 AND THE THREE-MONTH PERIOD ENDED MARCH 31, 2007............................................... 289
41. UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF ALEXIS NIHON, 31 MARCH
2007, PREPARED IN ACCORDANCE WITH CANADIAN GAAP ................................................................................... 297
42. UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS OF HOMBURG FOR THE YEAR
ENDED DECEMBER 31, 2006 AND THE THREE-MONTH PERIOD ENDED MARCH 31, 2007 ................................ 312

1. PROSPECTUS SUMMARY
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The following is a summary of the principal features of the Offering only and is to be read as
an introduction to the Prospectus. It should be read in conjunction with, and is qualified in its entirety
by, the more detailed information and financial data contained elsewhere or incorporated by
reference in this Prospectus. Any decision to invest in the shares of the Company should be based on
consideration of the Prospectus as a whole by the investor. For an explanation of certain terms and
abbreviations used in this Prospectus and not otherwise defined, please refer to the “Glossary
of Terms” at the end of this Prospectus.
No civil liability attaches to the Company solely on the basis of the summary, including any
translation thereof, unless it is misleading, inaccurate or inconsistent when read together with the
other parts of this Prospectus. Where a claim relating to the information contained in this Prospectus
is brought before a court in a Member State of the European Economic Area, the plaintiff may, under
the national legislation of the Member State of the European Economic Area where the claim is
brought, be required to bear the costs of translating the Prospectus before the legal proceedings are
initiated.
Overview
Homburg is an international real estate investment and development company based in Halifax, Nova
Scotia. Homburg owns and develops a diversified portfolio of quality real estate, including office, retail,
industrial and residential apartment and townhouse properties in Canada, Europe and the United States. The
Company also owns land assets for residential or commercial development in Calgary and Edmonton, Alberta,
Montréal, Québec and Charlottetown, Prince Edward Island.
Over the past several years, Homburg has become increasingly active in the direct development of
properties. These development activities have been primarily conducted in Calgary, Alberta, and have included
both commercial and multi-unit residential projects. In late 2006, Homburg also entered into partnerships for
two development projects in Montréal, Québec.
The Class A Shares and the Class B Shares of Homburg are listed and posted for trading on the TSX
under the symbols HII.A and HII.B, respectively. The Class A Shares are also listed and posted for trading on
Eurolist under the symbol HII. See “Description of Share Capital”.
A subsidiary of Homburg now owns 100% of the issued and outstanding units of Alexis Nihon, largely
pursuant to an offer made in February 2007. On June 5, 2007 Homburg and Alexis Nihon announced the
completion of the Cominar Sale, pursuant to which certain Alexis Nihon properties were sold to Cominar. See
Chapter 15 “The Alexis Nihon Acquisition”.
Growth Profile
Competitive Strengths
The Company has grown its real estate portfolio from approximately $89 million as at December 31,
2000 to approximately $2.0 billion as at March 31, 2007. Pro forma to give effect to the Alexis Nihon
Acquisition and the Cominar Sale, the Company would have had real estate assets of approximately $2.5 billion
as at March 31, 2007.
The following chart illustrates the Company’s asset growth from 2000 to March 31, 2007.

Notes:
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(1) Compound annual growth rate is calculated as ( ( ( Ending Value / Beginning Value )( 1 / # of Years )) _1 ) and is based on total
assets.
(2) Totals and Compound Annual Growth Rate calculations are based on pro forma figures giving effect to the Alexis Nihon
Acquisition and the Cominar Sale.
Since December 31, 2000, the Company has acquired and developed approximately 9 million square
feet of office, industrial, retail and residential properties in Canada. The Company’s current development
pipeline, which includes 17 projects, demonstrates how the Company expects to grow its business through the
development of new projects, in addition to continuing to achieve organic growth within its existing income
producing property portfolio through active tenant management. See paragraph 10.2 “Growth History”,
paragraph 11.3 “Development Projects”, Chapter 14 “Recent Developments” and Chapter 15 “The Alexis Nihon
Acquisition”.
Economies of Scale
Homburg’s significant international real estate portfolio of approximately $2.0 billion as at March 31,
2007 ($2.5 billion as at the same date pro forma to give effect to the Alexis Nihon Acquisition and the Cominar
Sale) provides many economies of scale including:
• Improved access to capital. Homburg’s international exposure and overall scale allow it to access the capital
markets in more than one country, thereby increasing available financing alternatives and improving its cost of
capital by eliminating exposure to any one market in isolation. The Company’s access to capital, including its
extensive secured and unsecured bond issuance programs, has assisted the Company in achieving its growth
objectives to date. See Chapter 17 “Debt Overview”.
Homburg’s dual listing on the TSX and Eurolist provides the Company with instant recognition in both Canada
and Europe and facilitates access to these two important capital markets. The Company will continue to monitor
the capital markets in Canada, Europe and the United States to access the most efficient sources of capital.
• Centralized management structure. Through the Company’s ongoing relationship with Homburg Canada and
its senior management team, Homburg efficiently manages and proactively responds to a number of portfolio
considerations. This includes leveraging tenant relationships, identifying and executing on growth opportunities
on a global basis, benefiting from cost reduction initiatives and having an efficient decision making process that
reduces transaction costs and transaction turnaround time. See paragraph 13.7 “Related Party Transactions”
under the heading “Agreements with Related Parties” for more information on Homburg Canada and the
services it provides.

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• Potential to capitalize on market consolidation. Due to its well-established portfolio of real estate as well as its
exposure to various asset classes and marketplaces, Homburg has insight into and access to various market
consolidation opportunities. Exposure and expertise in various international markets allow Homburg to invest
where pricing and opportunities are most attractive at any given point in time. See paragraph 10.2 “Growth
History”, Chapter 14 “Recent Developments” and Chapter 15 “The Alexis Nihon Acquisition”.
Portfolio Diversification
The Company’s risk management strategy incorporates portfolio diversification over various countries,
portfolio types, lease durations and tenant types.
In the three-month period ended March 31, 2007, the Company derived approximately 81% of its net
operating income from Europe, 17% from Canada and 2% from the United States. The Company’s objective is
to develop a geographically diversified portfolio of real estate assets, well balanced over these three geographic
regions. In addition, the Company’s portfolio currently consists of four asset classes: office, industrial, retail and
residential, as well as land held for development. In the three-month period ended March 31, 2007, the
Company derived approximately 65% of its net operating income from office properties, 22% from industrial
properties, 12% from retail properties and 1% from residential properties. The Company’s strategy with respect
to asset class distribution is to diversify its revenues across office, industrial and retail properties, while also
pursuing residential development projects.
The following charts illustrate (i) the geographic distribution by net operating income and (ii) the asset
class distribution by net operating income, of the Company’s real estate portfolio in the three-month period
ended March 31, 2007.
In the three-month period ended March 31, 2007, pro forma to give effect to the Alexis Nihon
Acquisition and the Cominar Sale, (i) the Company would have derived approximately 67% of its net operating
income from Europe, 31% from Canada and 2% from the United States, and (ii) the Company would have
derived approximately 58% of its net operating income from office properties, 19% from industrial properties,
21% from retail properties and 2% from residential properties.
The following charts illustrate (i) the geographic distribution by net operating income and (ii) the asset
class distribution by net operating income, of the Company’s real estate portfolio in the three-month period
ended March 31, 2007, pro forma to give effect to the Alexis Nihon Acquisition and the Cominar Sale.

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Homburg’s lease portfolio consists of contracts with staggered maturity dates. In general, the
Company’s real estate assets located in Canada and the United States have shorter lease terms than those in
Europe. Homburg’s strategy is to effectively manage a balance between shorter lease terms, which enable it to
renew lease contracts and attract new tenants while capitalizing on increasing market rental rates where
available, and longer lease terms, where appropriate, to provide portfolio stability and increase predictability of
revenue.
As at March 31, 2007, the Company’s lease portfolio had a weighted average occupancy rate of 98%
and the weighted average remaining term of all leases was approximately 9.3 years. The following chart
illustrates Homburg’s lease maturity schedule based on total square footage maturing in a given year (assuming
tenants do not exercise renewal options and, in respect of the leases for the Zellers portfolio, assuming that
Homburg or Zellers exercises its renewal option to extend its maturity to 2023 prior to the expiration of the
current term in 2018) as a percentage of total gross leasable area.

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The Company’s lease portfolio is also diversified by tenant type. The Company seeks multi-tenant
properties, but also acquires properties with Single Tenant Triple Net Leases as attractive opportunities become
available. As at March 31, 2007, approximately 64% of Homburg’s portfolio consisted of Single Tenant Triple
Net Leases as measured by total property revenue. See also paragraph 11.4 “Description of the Company’s Most
Significant Investment Properties”.
The Company has numerous relationships with strong national and international tenants. As illustrated
in the following table, as at December 31, 2006, the Company’s 10 largest tenants accounted for approximately
65% of its total property revenue. As at December 31, 2006, pro forma to give effect to the Alexis Nihon
Acquisition and the Cominar Sale, the Company’s 10 largest tenants would have accounted for approximately
42% of its total property revenue.

Notes:
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(1) Percentage based on total property revenue of Homburg for the year ended December 31, 2006, pro forma to give effect to the
Alexis Nihon Acquisition and the Cominar Sale.
(2) Infineon Technologies offers semiconductor and system solutions addressing energy efficiency, mobility and security. In the
fiscal year 2006, the company reported sales of €7.9 billion and earnings before interest, taxes, depreciation and amortization
(EBITDA) of U.S. $1.8 billion with approximately 42,000 employees worldwide and an equity market capitalization of
approximately U.S. $11.6 billion as at April 30, 2007. With a global presence, Infineon operates through its subsidiaries in the
U.S., Asia-Pacific region from Singapore and Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the
New York Stock Exchange under the symbol IFX.
(3) Quelle AG Trading is a large provider of technical goods in the German mail order market and is part of the Karstadt Quelle AG
Group. The group reported sales in 2006 of €13.1 billion and EBITDA of €408.9 million with approximately 55,572 employees.
(4) Assuming that Homburg or Zellers exercises its renewal option in respect of the leases for the Zellers portfolio to extend its
maturity to 2023 prior to the expiration of the current term in 2018.
(5) Following its acquisition of 63 properties from SEB Group, the Company expects to earn total lease revenue from SEB Group of
approximately $18 million per year, which would make SEB Group the second largest tenant of the Company by property
revenue. See paragraph 14.2 “Other Recent Developments” under the heading “Acquisition of SEB Group Property Portfolio in
the Baltics”.
(6) Generally, the Company’s largest European leases, including those listed in the above table, are subject to annual rent increases.
The increases are generally based upon one of the following four methods: (i) a specific amount increase every year, (ii) a
specific percentage increase every one or two years, (iii) an annual increase based upon an agreed percentage of the national price
index, provided in certain cases that a minimum increase threshold is met, and (iv) an annual increase based on the national price
index, subject to a maximum of 5%, but not subject to a minimum increase threshold.
(7) The Company’s leases with Zellers and Co-op Atlantic, its two largest North American tenants by property revenue listed in the
above table, are also subject to automatic rent increases over set periods of time of between four and six years, based upon a fixed
percentage increase in the case of Zellers and the consumer price index in the case of Co-op Atlantic.
Management Expertise
Management has a strong track record in successfully operating a broad cross section of real estate
properties and development projects. Such experience allows Homburg to identify and execute on investment
opportunities across Canada, Europe and the United States. Homburg’s track record of management success
spans markets across the world and provides the Company with international market insight.
Property Portfolio
Homburg currently owns real estate properties in British Columbia, Alberta, Ontario, Québec, New
Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador in Canada, Texas and Colorado in
the United States, and Germany and the Netherlands in Europe.
The following table outlines the investment properties directly or indirectly owned by Homburg as at
March 31, 2007, pro forma to give effect to the Alexis Nihon Acquisition and the Cominar Sale.

Note:
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(1) Place Alexis Nihon has been included in the office properties category and includes an office, retail and multi-family residential
component.
Business Strategy
The Company’s strategy is to develop a diversified real estate portfolio in Canada, Europe and the
United States which generates stable and growing cash flows. Homburg focuses on managing its existing
portfolio and on acquiring and developing properties that have stable cash flows and superior growth
opportunities in an effort to maximize overall return on investment. Homburg also aims to provide its tenants
with attractive office, retail, industrial and residential units by holding its property managers to superior
professional standards.
The Company intends to grow its real estate portfolio nationally and internationally through both
profitable
development projects and accretive acquisitions, with a focus on the creditworthiness of tenants and
predictability and stability of cash flows. Industry trends, location, traffic counts, demographics and both the
current and potential future competitive environments are some of the many critical factors that Homburg
considers when evaluating a real estate asset.
Homburg believes that a diversified real estate portfolio comprised of a mix of office, retail, industrial
and residential properties, located in Canada, Europe and the United States, as well as land assets for
development, provides the Company with an optimal balance of income stability and growth potential. In
addition and as part of its overall strategy, the Company will occasionally acquire underperforming properties
where its development and leasing expertise can be strategically leveraged.
The Company has recently increased its presence in Canada and the United States through, among
other things, the Alexis Nihon Acquisition in Canada, as well as the Company’s recently announced joint
venture with Cedar Shopping Centers and investment in DIM Vastgoed N.V, both increasing the Company’s
stake in the United States real estate market. In addition, the Company has recently announced an expansion of
its real estate portfolio in Europe through the pending acquisition of 63 properties in the Baltic countries of
Estonia, Latvia and Lithuania from SEB Group. See Chapter 14 “Recent Developments”.

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The Alexis Nihon Acquisition
The Company believes that attractive opportunities currently exist in the Montréal, Québec real estate
market. In the fourth quarter of 2006, Homburg identified the Alexis Nihon retail properties and Place Alexis
Nihon as quality real estate in strong locations. In addition, Management believes that there is potential for
increasing returns on, as well as net operating income from, those properties through revenue enhancing capital
expenditures. On February 27, 2007, Homburg Acquisition, a wholly-owned Subsidiary of the Company, made
the Offer for Alexis Nihon to purchase all of the units of Alexis Nihon other than the units held by Homburg
Acquisition and its affiliates at a price of $18.60 in cash per unit.
On April 6, 2007, Homburg announced that Homburg Acquisition had taken up 20,663,699 units of
Alexis Nihon, representing approximately 70% of the issued and outstanding units, under the Offer for Alexis
Nihon. Homburg Acquisition paid for such units on April 11, 2007 and, further to the completion of the Nihon
Capital Reorganization, now owns 100% of the issued and outstanding units of Alexis Nihon. On May 24, 2007,
Alexis Nihon announced the completion of the Alexis Nihon Acquisition through the Alexis Nihon Capital
Reorganization, which was approved at a special meeting of the unitholders of Alexis Nihon held on May 17,
2007.
On June 5, 2007, Homburg and Alexis Nihon announced that they closed the Cominar Sale (excluding
the sale of the Alexis Nihon Co-Owned Properties) effective on June 1, 2007, subject to customary property
registrations to be completed shortly following the closing, pursuant to which Alexis Nihon sold the Alexis
Nihon Industrial and Office Properties (other than the Alexis Nihon Co-Owned Properties) to Cominar for $575
million, including the assumption of $238 million of debt relating to those properties. Pursuant to the Cominar
Asset Sale Agreement, Cominar has also unconditionally offered to purchase Alexis Nihon’s interest in the
Alexis Nihon Co-Owned Properties for a purchase price of approximately $17.3 million, including the
assumption of approximately $3.2 million of debt relating to those properties, subject to the exercise or waiver
by the co-owner of such properties of its rights of first refusal. See “Property Portfolio—Investment Properties”
and “Property Portfolio — Description of the Company’s Most Significant Investment Properties” for more
information on the properties of Alexis Nihon retained by Homburg, consisting of Place Alexis Nihon
(including the office and residential components) and the retail properties of Alexis Nihon.
The acquisition of a majority of the units of Alexis Nihon constitutes a significant gross change for
Homburg within the meaning of Commission Regulation 809/2004. As such, this Prospectus includes a
description of the acquisition including historical and pro forma financial statements. The historical financial
statements include schedules of selected financial information with respect to the properties acquired by
Homburg pursuant to the Alexis Nihon Acquisition that are being retained by it pursuant to the Cominar Sale.
The pro forma adjustments contained in the unaudited pro forma combined financial statements included in this
Prospectus are based upon the assumptions described in the notes to such unaudited pro forma combined
financial statements, and provide the following information: (i) pro forma combined financial information of
Homburg, giving effect to the Alexis Nihon Acquisition and the Cominar Sale, (ii) pro forma adjustments for
the Offering (assuming the exchange of the subscription receipts for Class A Shares) and (iii) pro forma
combined financial information of Homburg, giving effect to the Alexis Nihon Acquisition, the Cominar Sale
and the Offering. The unaudited pro forma combined financial statements are presented for illustrative purposes
only and are not necessarily indicative of the operating or financial results that would have occurred had the
acquisition actually occurred at the times contemplated by the notes to the unaudited pro forma combined
financial statements, the pro forma effect of the use of the net proceeds of this Offering or of the results
expected in future periods.
See Chapter 15 “The Alexis Nihon Acquisition” for further details about Alexis Nihon, the Alexis
Nihon Acquisition and the Cominar Sale.

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The Listing
The Listing Shares are comprised of (1) 36,200,000 Class A Shares (the “Offer Shares”) newly issued
by the Company pursuant to an offering (the “Offering”) to non-EEA residents of subscription receipts in
respect of Class A Shares on the basis of a prospectus issued in Canada on June 5, 2007 and subject to the terms
thereof, (2) 12,307,604 Class A Shares (the “Existing Shares”) issued by the Company prior to the Offering and
unrelated thereto, and (3) any Additional Shares.
The Offering
Amount: $190,050,000
Price: $5.25 per subscription receipt.
Over-Allotment Option: Homburg has granted to the Underwriters an option (the “Over-
Allotment Option”) to cover over-allotments, if any, and for market
stabilization purposes, which may be exercised in whole or in part
for a period of 30 days from closing of the Offering, entitling them
to purchase up to a maximum of 5,430,000 subscription receipts in
respect of Additional Shares. See Chapter 21 “Plan of Distribution
of the New Shares”.
Closing Date of the Offering: June 13, 2007.
Use of Proceeds: The Company will use the net proceeds of the Offering to repay all
or a portion of the Bridge Loans which were put in place to finance
the Alexis Nihon Acquisition. If, at the time of release of the
Escrowed Funds to the Company, the amount outstanding under the
Bridge Loans is lower than the net proceeds of the Offering, the
remainder of such net proceeds after repayment of the Bridge Loans
will be used for general corporate purposes. See paragraph 15.4
“Financing”.
Selected Financial Information
The selected consolidated financial information set forth below is that of Homburg and its Subsidiaries.
This information should be read in conjunction with management’s discussion &analysis and the Company’s
Audited Consolidated Annual Financial Statements together with the notes thereto and the auditors’ report
thereon as well as the Company’s Unaudited Consolidated Interim Financial Statements for the three-month
period ended March 31, 2007 and the related MD&A, each prepared in accordance with Canadian GAAP and
included or incorporated by reference in this Prospectus. The consolidated financial data are extracted or derived
from the Company’s Audited Consolidated Annual Financial Statements or Unaudited Consolidated Interim
Financial Statements prepared in accordance with Canadian GAAP for the financial year ended December 31,
2006, 2005 and 2004 or the three-month period ended March 31, 2007, as the case may be. The selected
consolidated financial data set forth below may not contain all of the information that is important to the
prospective investors.

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Holdings Prior to and After the Offering
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Related Party Transactions
As at June 4, 2007, Richard Homburg owns or has control and direction over 40,291,909 Class A
Shares and 24,378,900 Class B Shares, representing in the aggregate 49% of the outstanding shares and 73.2%of
the votes associated with all of the outstanding shares of the Company. After giving effect to the Offering
(assuming the exchange of the subscription receipts for Class A Shares), Richard Homburg will own or have
control or direction over Class A Shares and Class B Shares representing in the aggregate 38.5% of the
outstanding shares and 70.3% of the votes associated with all of the outstanding shares.

Agreements with Related Parties
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The agreements relating to the management, acquisition, disposition and financing of the assets and
properties of the Company have been entered into by companies directly or indirectly controlled by Richard
Homburg.
Homburg Canada, a company indirectly controlled by Richard Homburg, has offices in Halifax and
Dartmouth, Nova Scotia, Montréal, Québec, and Calgary and Edmonton, Alberta and has approximately 130
employees. Homburg Canada’s senior management team has extensive experience in real estate finance,
management, acquisition and development. Homburg Canada subcontracts its European asset and property
management activities for Homburg’s European assets (excluding the Campeon Complex in Munich, Germany
leased to Infineon Technologies AG) to Homburg Vastgoed, an entity controlled directly and indirectly by
Richard Homburg. Homburg Vastgoed performs asset and property management services similar to those
provided by Homburg Canada. In addition, Homburg Vastgoed actively sources new acquisition and financing
opportunities for the Company through its offices in Amsterdam and Soest, in the Netherlands. The Campeon
Complex in Munich, Germany is managed by an unrelated third party. Neither Homburg Canada nor any other
party related to Richard Homburg receives property or asset management fees with respect to that property.
Homburg Canada’s U.S. asset and property management activities for Homburg’s U.S. assets are carried on
through Homburg Realty Services (US) Inc., a wholly-owned subsidiary of Homburg Canada.
Almost all of the real estate assets directly or indirectly owned by the Company were managed by
Homburg Canada pursuant to the Existing Property Management Agreements and Existing Asset Management
Agreements. The Existing Property Management Agreements and Existing Asset Management Agreements
have been replaced by the Master Property and Asset Management Agreement that covers all properties
currently owned by Homburg, wherever located, except for properties held by the Minority Partnerships and the
Campeon Complex in Munich, Germany which will continue to be managed by an unrelated third party without
payment of property or asset management fees to Homburg Canada or any other party related to Richard
Homburg. Such Master Property and Asset Management Agreement has been entered into between, inter alia,
Homburg and Homburg Canada at the closing of the Offering and has an initial term expiring on June 30, 2016
with automatic renewal terms of one year. Homburg Canada will continue to subcontract its European asset and
property management activities for Homburg’s European assets (excluding the Campeon Complex in Munich,
Germany) to Homburg Vastgoed, an entity controlled directly and indirectly by Richard Homburg. See
“Management of Homburg — Related Party Transactions — Agreements with Related Parties”.
A majority of the Company’s real estate assets are currently held through the Partnerships. Each
Partnership has a general partner who is responsible for managing the Partnership and one or more Limited
Partners who provide equity in return for limited partnership units. The General Partner for substantially all of
the Partnerships is Homburg LP Management Incorporated. The General Partner is controlled directly and
indirectly by Richard Homburg.
The General Partner has full power and authority to transact the business of the Partnerships and to deal
with the assets for the use and benefit of the Partnerships. For these purposes, the General Partner has sole,
complete and unfettered power and authority to manage and carry on the business of the Partnerships and to do
all things required in connection with the Partnership including, but not limited to, acquiring and disposing of
real property, mortgaging and charging real property, contracting for service, banking, appointing auditors,
making capital distributions and selling or acquiring limited partnership units. The Limited Partners cannot
direct the General Partner, and can only remove it as general partner of a given Partnership upon its bankruptcy
or default under the applicable limited partnership agreement. Except for the removal of the General Partner in
the circumstances described above and the appointment of a new general partner, the Limited Partners shall
have no right to direct the General Partner to implement any decision of the Limited Partners without the
consent of the General Partner. The limited partnership agreement for a Partnership does not allow the Limited
Partners to remove the General Partner except upon its bankruptcy or default under the applicable limited
partnership agreement. In order for the Limited Partners of a Partnership to remove the General Partner in other
circumstances, theymust first amend the applicable limited partnership agreement. The limited partnership
agreement of a Partnership may be amended to change any of the foregoing provisions, including the provision
which limits the circumstances under which the General Partner can be removed as general partner of the
Partnership, by resolution passed at a meeting of unitholders of the Partnership provided such resolution is
approved by a vote of persons, owning or representing in person or by proxy a minimum of 70% of all units of
the Partnership, present or represented and entitled to vote at the meeting in favour of such amendment. The
holders of 25% or more of the units of a Partnership may cause the General Partner to call a meeting of

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unitholders of a Partnership. Except for the Minority Partnerships, Homburg controls 99% of the voting rights
attached to the units of each Partnership. See Chapter 16 “Organizational Structure”.
Non-Competition Agreement
Prior to closing of the Offering, the Homburg Parties will enter into the Non-Competition Agreement
with Homburg, which will restrict certain investments in real estate by any of the Homburg Parties.
Except for properties currently held by the Homburg Parties (see Paragraph 10.5 “Activities” under the
heading “Management of Real Estate” for a description of the investment properties held by Homburg Canada),
each of the Homburg Parties will be prohibited from directly or indirectly investing in or developing office,
retail, residential, industrial or mixed-use investment properties, other than by way of equity investment into
publicly traded companies, provided that each such investment is limited to 10% of the voting rights attached to
the securities of any such publicly traded company, unless the Company has been offered such investment in
accordance with the terms of the Non-Competition Agreement. If the Company refuses an investment offered to
it in accordance with the terms of the Non-Competition Agreement, the Homburg Party having presented the
investment shall have the right to make such investment on terms not more favorable to it than those offered to
the Company within six months from such refusal, after which such investment must again be offered to the
Company in accordance with the terms of the Non-Competition Agreement before it can be completed by any
Homburg party. The restrictions in the Non-Competition Agreement will apply to all investment properties
located in Canada, Europe and the United States. See Paragraph 13.7 “Related Party Transactions” under the
heading “Non-Competition Agreement”.
Dividend Policy
Dividends are payable on all Class A Shares and Class B Shares if, as and when declared by the Board
of Directors. Any dividends thus declared will be declared contemporaneously and paid at the same time and in
the same amount per share on all the Class A Shares and Class B Shares at the time outstanding, without
preference or priority of one share over another.
The holders of the Class A Preferred Shares and the Class B Preferred Shares (subject to the
preferences afforded to the Class A Preferred Shares over the Class B Preferred Shares) are entitled to the
payment of dividends in priority to the holders of the Class A Shares, the Class B Shares and any other shares of
the Company ranking junior to the Class A Preferred Shares or the Class B Preferred Shares from time to time
to the payment of dividends. Such dividends are to be paid rateably with the other holders of Class A Preferred
Shares or Class B Preferred Shares, as the case may be, provided that accumulated dividends, if any, are paid
preferentially to the holders of such series as determined by the Board of Directors at the time the Preferred
Shares are issued.
The amount of any dividend paid on the shares of the Company is at the discretion of the Board of
Directors, subject to the provisions of the ABCA. Since September 2004, dividends have been and, subject to
the approval of the Board of Directors, will be paid semi-annually on March 30 and September 30 for Class A
Shares and Class B Shares. The record date for dividend payments has typically been fifteen calendar days
before the dividend payment date. The first semi-annual dividend of 2007 was paid in an amount of $0.18 per
share on March 30, 2007 to Shareholders of record on March 15, 2007.
On May 4, 2007 the Board of Directors approved an increase of the semi-annual dividend to $0.24 per
share commencing with the second semi-annual dividend of 2007. If declared, this second semi-annual dividend
payment would be paid on September 30, 2007 and would result in a total dividend payment of $0.42 per share
for 2007, and is anticipated to result in an annualized dividend payment of $0.48 per share in 2008. The increase
of the semi-annual dividend to $0.24 per share represents the fifth increase in the amount of the semi-annual
dividend since the Company began paying dividends in September 2004. The Company aims to continue to
make stable dividend payments going forward. This reflects the Company’s strategic goal of providing a dual
return to its Shareholders through both dividends and appreciation in the value of its shares.
Shareholders may opt to participate in the Dividend Reinvestment Plan. In each of the previous four
dividend payments, between 61% and 86% of the total dividend payment was reinvested through the Dividend
Reinvestment Plan. The Dividend Reinvestment Plan enables Shareholders to invest the cash dividends paid on
the Class A Shares and Class B Shares in additional Class A Shares. A participant in the Dividend Reinvestment
Plan may elect to invest cash dividends paid on its shares with respect to all or 50% of its shares. Class A Shares
bought under the Dividend Reinvestment Plan are acquired at 97% of the average market price based on the

- 17 -
weighted average closing price for the 20 days immediately preceding the applicable dividend date (subject to
Board of Directors approval). More detailed financial information is available in the Dividend Reinvestment
Plan, available electronically on the website of the Company at www.homburginvest.com.
The table below sets forth the Company’s earnings, dividend and share price data for the three-month
period ended March 31, 2007 and the years ended December 31, 2006, 2005 and 2004.
Notes:
(1) Cash dividend based on last twelve months ending March 31, 2007.
(2) Class A Share price in 2005, 2006, and 2007 common share price in 2004.
(3) Dividend Payout Ratio = Cash Dividend Declared per Share / Earnings per Share.
(4) For the three months ended March 31, ratios and yields are calculated based on annualized Earnings per Share and annualized FFO per
Share.
(5) Dividend Yield = Cash Dividend Declared per Share / Share Price at Year End.
(6) FFO Payout Ratio = Cash Dividend Declared per Share / FFO per Share.

Notes:
- 18 -
(1) The General Partner is controlled directly and indirectly by Richard Homburg, the Chairman and Chief Executive Officer of the
Company. It is the general partner of all Limited Partnerships except for Viger Limited Partnership (the general partner of which
is 4348931 Canada Inc., a corporation that is 50% held by the Company) and 333 Sherbrooke Street East (the general partner of
which is 9129-8190 Québec Inc., a corporation that is 50% held by the Company)).
(2) Homburg Canada is controlled indirectly by Richard Homburg, the Chairman and Chief Executive Officer of the Company.
(3) Almost all of the real estate assets owned directly or indirectly by the Company are managed by Homburg Canada pursuant to the
Existing Property Management Agreements and the Existing Asset Management Agreements, which have been replaced by the
Master Property and Asset Management Agreement.
See “Management of Homburg — Related Party Transactions — Agreements with Related Parties” for more details on Homburg
Canada and the services it provides.

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Risk Factors
Investing in the Class A Shares involves substantial risks that should carefully be considered by a
prospective purchaser in deciding whether to invest in the Class A Shares. These risks, and other risks
associated with an investment in the Class A Shares, include those related to: “Real Property Ownership”,
“Concentration of Tenants”, “Reliance on Richard Homburg”, “Reliance on Property and Asset Management
Agreements and General Partner”, “Competition”, “Growth Prospects and Management”, “International
Operations”, “Fixed Costs”, “Financing Risks and Leverage”, “Liquidity of Real Property Investments”,
“General Uninsured Losses”, “Indexation for Inflation and Duration of North American Lease Contracts”,
“Access to Capital”, “Dilution”, “Interest Rate Exposure”, “Currency Exposure”, “Environmental Matters”,
“Expansion and Development”, “Jointly Owned Property”, “Payment of Taxes and Tax Reassessment”,
“Potential for Incurring Unexpected Costs or Liabilities”, “Investment Eligibility”, “Market Price” and
“Liquidity and Volatility of Class A Shares”.

2. RISK FACTORS
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Investing in Class A Shares involves a high degree of risk. Prospective purchasers of Class A
Shares should carefully consider the following risk factors and the other information in this
Prospectus before investing in Class A Shares. If any of the following risks actually occur, the
Company’s business, results of operations or financial condition could be materially adversely
affected. In that event, the value of the Class A Shares could decline and investors may lose part or all
of their investment. Although the Company believes that the risk factors described below are its most
material risks, they are not the only ones that the Company faces. Additional risk factors not presently
known to the Company or that it currently deems immaterial may also have a material adverse effect
on its business, results of operations or financial condition and could negatively affect the price of the
Class A Shares.
2.1 Risks Relating to the Business
Real Property Ownership
All real property investments are subject to a degree of risk. Such investments are affected by
general economic conditions, such as availability of long-term mortgage funds, local real estate
markets, supply and demand for leased premises, competition from other available premises and
various other factors. The value of real property and any improvements thereto may also depend on
the credit and financial stability of the tenants.
Concentration of Tenants
In the financial year ended December 31, 2006, the Company derived approximately 40.3%
of its annual property revenues from its top two tenants, 52% from its top five tenants and 63.5% from
its top 10 tenants. The Company’s revenues are sensitive to the ability of the Company’s key tenants
to meet their rent obligations and the Company’s ability to collect rent from these tenants. If for any
reason the Company were unable to collect rents from these key tenants, the Company’s revenues
could be materially adversely affected.
The Company’s income would be adversely affected if a few key or significant number of
tenants were to become unable to meet their obligations under their leases or if a significant amount of
available space in its properties were not able to be leased on economically favourable lease terms.
Upon the expiry of any lease, there can be no assurance that the lease will be renewed or the tenant
replaced. In certain cases and in certain jurisdictions (such as Germany, where long term leases are
subject to strict formal requirements), tenants may have the right to terminate the leases prior to the
expiration of their term, upon certain conditions. Although the Company has no reason to believe that
any of its leases governed by German law does not comply with applicable law, form requirements
are subject to court discretion and there may be a risk that some or all such leases do not satisfy the
strictest interpretations of these requirements. In the event that a lease was terminated prior to its term,
the terms of any subsequent lease may be less favourable to the Company than the existing lease. In
the event of default by a tenant, delays or limitations in enforcing rights as a lessor may be
experienced and substantial costs in protecting the Company’s investment may be incurred.
Furthermore, at any time, a tenant of any of the Company’s properties may seek the protection of
bankruptcy, insolvency or similar laws that could result in the rejection and termination of such
tenant’s lease and thereby cause a reduction in the cash flow available to the Company. Costs may be
incurred in making improvements or repairs required by a new tenant. The failure to rent unleased
space on a timely basis or at all would likely have an adverse effect on the financial condition of the
Company.

Reliance on Richard Homburg
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Richard Homburg is the Chairman of the Board of Directors and Chief Executive Officer of
the Company, Chairman of the Executive Board of Homburg N.V., Chairman and member of the
Board of Management of Homburg Canada and Chairman of Homburg Uni-Corp Inc. Furthermore,
Mr. Homburg is a member of the Board of Directors of Cedar Shopping Centers. As such, Mr.
Homburg and the Company have strong links and the Company’s operations are influenced by the
strategic course influenced by Mr. Homburg. Deterioration of this relationship could have a
significant impact on the operations of the Company and its strategic course. It is possible that Mr.
Homburg might pursue business opportunities outside the Company, including real estate and
development business opportunities.
Mr. Homburg and entities directly or indirectly controlled by him, including the directors and
officers of such entities, may become involved in transactions in which their interests conflict or are
perceived to conflict with the interests of the Company. Any such conflicts would be subject to the
procedures and remedies provided under the ABCA, pursuant to which Mr. Homburg would have to
disclose such conflicts and abstain from voting on any resolutions of the Board of Directors related to
such conflict. See Paragraph 13.1 under the heading “Conflict of Interests”.
As at June 4, 2007, Richard Homburg owns or has control and direction over 40,291,909
Class A Shares and 24,378,900 Class B Shares, representing in the aggregate 49% of the outstanding
shares and 73.2% of the votes associated with all of the outstanding shares of the Company. The
market price of the Class A Shares could be significantly affected if Mr. Homburg sells any of his
shares in the Company or is perceived by the market as intending to sell them. In addition, for as long
as Mr. Homburg maintains a controlling interest in Homburg, he will generally be able to approve any
matter submitted to a vote of Shareholders of the Company which requires the approval of a simple
majority of Shareholders voting at the meeting, including, among other things, the election of the
Board of Directors.
Mr. Homburg has, and will following the Offering, retain sufficient voting power to, amongst
other things, delay, deter or prevent a change of control, which could deprive the investors of an
opportunity to earn a premium for the resale of their Class A Shares. Given Mr. Homburg’s level of
control of the Company, he will have a significant influence on the Company’s operations and affairs.
His interests may differ from the interests of other Shareholders. As a result, the market price of the
Class A Shares could be adversely affected.
Mr. Homburg’s level of voting control over the Company may also prevent a change to the
property or asset management services provided to the Company, which are currently provided by
Homburg Canada, a company indirectly controlled by Mr. Homburg.
Mr. Homburg also controls, directly and indirectly, the General Partner. The General Partner
is acting on behalf of the Partnerships pursuant to all of the Property Management Agreements and
Asset Management Agreements to which the Partnerships are party. See “Reliance on Property and
Asset Management Agreements and General Partner” below.
Reliance on Property and Asset Management Agreements and General Partner
The Company has signed Existing Property Management Agreements and Existing Asset
Management Agreements and the Master Property and Asset Management Agreement with Homburg
Canada, a company indirectly controlled by Richard Homburg. Homburg Canada provides complete
management services, directly or through sub contracts, for the management of the Company’s real
estate properties. These contracts are generally concluded on a property by property basis for a term
of 10 years. See Paragraph 13.7 “Related Party Transactions” under the heading “Agreements with
Related Parties” for more information on Homburg Canada and the services it provides.

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The Company’s success and business prospects depend to a significant extent on the
continued delivery of services by Homburg Canada. Homburg Canada may terminate the Master
Property and Asset Management Agreement by observing a notice period of 12 months. If Homburg
Canada were to cancel or change the level of management services provided to the Company, the
business of the Company could be adversely affected.
As limited partner in the Partnership, the Company cannot direct the General Partner, and can
only remove the General Partner of a Partnership upon bankruptcy of the General Partner or default
under the applicable limited partnership agreement. The General Partner determines when any capital
contributions may be returned to Homburg.
Competition
The real estate markets in Canada, the Netherlands, Germany and the United States are highly
competitive and fragmented and the Company competes for real property acquisitions with
individuals, corporations, institutions and other entities which are seeking or may seek real property
investments similar to those desired by the Company. An increase in the availability of investment
funds and/or an increase in interest in immovable property investments may increase competition for
immovable property investments, thereby increasing purchase prices and reducing the yield on them.
Numerous other developers, managers and owners of properties compete with the Company
in seeking tenants. Some of the properties owned by the Company’s competitors are better located or
less leveraged than the properties owned by the Company. Some of the Company’s competitors are
better capitalized and stronger financially and hence better able to withstand an economic downturn.
The existence of competition for tenants could have an adverse effect on the ability of the Company to
lease space in its properties and on the rents charged or concessions granted, and could adversely
affect the revenues of the Company and its ability to meet its debt obligations.
Growth Prospects and Management
The Company has achieved rapid growth in a relatively short period of time. As a result of
such rapid growth, it may be necessary to expand and adapt operational infrastructure and increase the
number of personnel in certain areas. If the Company is unable to manage growth effectively, there
could be a material adverse effect on business, financial condition and results of operations.
The Company’s success depends in large part on identifying and pursuing suitable acquisition
and development opportunities, consummating acquisitions and developing these development
opportunities, and effectively operating the properties it acquires. Growth and expansion resulting
from future acquisitions may place a significant demand on management resources. Integration of
acquisitions, such as the Alexis Nihon Acquisition, involves a number of risks, including the
following:
• failure to successfully integrate the personnel, operations, systems and technologies
of the acquired business;
• failure to maximize the potential financial and strategic benefits of the acquisition;
and
• failure to realize the expected synergies from the acquired businesses.
If the Company is unable to integrate an acquisition, such as the Alexis Nihon Acquisition, its
business, operating results and financial condition could be materially adversely affected. Future
acquisitions are accompanied by the risk that the obligations and liabilities of an acquired company or
asset may not be adequately reflected in the historical financial statements of such company or asset
and the risk that such historical financial statements may be based on assumptions which are incorrect
or inconsistent with the Company’s assumptions or approach to accounting policies.

International Operations
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The Company operates in Canada, the Netherlands, Germany and the United States.
Accordingly, the Company faces economic, market, regulatory, legal and political risks inherent in
having relationships, operations and revenues in multiple jurisdictions, including:
• unanticipated or unfavourable changes in laws or regulatory requirements, including barriers
to trade;
• restrictions on the movement of capital;
• general economic conditions, particularly as they influence, among other things, interest rates;
• protectionist laws and business practices that favour local businesses in certain countries;
• potential for political, legal and economic instability; and
• challenges caused by distance and linguistic and cultural differences.
Any of these or other factors could have an adverse effect on the Company’s business, its
costs of operations and its ability to compete within the relevant markets.
Management expects to continue to develop the international operations of the Company, a
strategy which could expose the Company to new or additional risks, including differing laws and
business dynamics. Further international expansion may place significant additional burdens on the
Directors and the Officers. If the Company fails to properly manage these risks, it may incur higher
expenses and generate lower revenues, and any geographic expansion it has undertaken or may
undertake could have a materially adverse effect on its business, operating results or financial
condition.
Fixed Costs
Certain significant expenditures, including property taxes, maintenance costs, mortgage
payments, insurance costs and related charges, must be made throughout the period of ownership of
real property, regardless of whether the property is producing any income. A high level of fixed costs
implies a high degree of operating leverage. See “Financing Risks and Leverage” below.
Financing Risks and Leverage
The Company is subject to the risks associated with debt financing, including the risk that the
Company’s cash flows will be insufficient to meet required payments of principal and interest, the
risk that existing mortgages will not be able to be refinanced or that the terms of such refinancing will
not be as favourable as the terms of existing indebtedness. As a result, debt service payments by the
Company may increase. In addition, if debt is not serviced when due, the relevant property could be
repossessed by the lender and the Company could lose the resulting cash flow and the equity in the
asset repossessed.
If the Company is unable to refinance its indebtedness upon the end of the term of the
relevant loan on acceptable terms, or at all, it might be forced to dispose of one or more of its
properties on disadvantageous terms, which might result in losses. Such losses could have a material
adverse effect on the Company’s business, financial condition, results of operations or cash flows.
Furthermore, if a property is mortgaged to secure the payment of indebtedness and the
Company is unable to meet mortgage payments, the mortgagee could foreclose upon the property,
appoint a receiver and receive an assignment of rents and leases or pursue other remedies, all of which
could result in lost revenues and asset value to the Company.
The Company is not subject to any borrowing and/or leverage limits other than those it agrees
with its debt providers. The degree to which the Company is leveraged could have important
consequences to Shareholders, including: (i) the Company’s ability to obtain additional financing for

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working capital in the future may be limited, (ii) a portion of the Company’s cash flow may be
dedicated to the payment of the principal of, and interest on, its indebtedness, thereby reducing the
amount of funds available for the payment of dividends to Shareholders, and (iii) certain of the
Company’s borrowings are at variable rates of interest which exposes the Company to the risk of
increased interest rates. The Company’s ability to make scheduled payments of the principal of, or
interest on, or to refinance, its indebtedness will depend on its future cash flow, which is subject to the
financial performance of properties in the Company’s portfolio, prevailing economic conditions,
prevailing interest rate levels, and financial, competitive, business and other factors, many of which
are beyond the Company’s control.
Liquidity of Real Property Investments
Real property investments are relatively illiquid, with the degree of liquidity generally
fluctuating in relation to demand for and the perceived desirability of such investments. Such
illiquidity may tend to limit the ability of the Company to vary its portfolio promptly in response to
changing economic or investment conditions. If the Company was to be required to liquidate its real
property investments, the proceeds might be significantly less than the aggregate carrying value of
such properties.
General Uninsured Losses
The Company carries comprehensive general liability, fire, extended coverage and rental loss
insurance with policy specifications and deductibles customarily carried for similar properties. Each
property and the value of the gross rental is insured to a specific limit assessed by the Company. Some
properties are insured directly by the tenant of the property and the Company seeks to be named as an
additional insured under the tenant´s policy. Other properties are insured for cash value only, insofar
as the property holds a building scheduled for destruction or a vacant lot.
There are, however, certain types of risks, generally of a catastrophic nature, such as wars,
terrorism or environmental contamination, which are either uninsurable or not insurable on an
economically viable basis. The Company has insurance for earthquake and flood risks, subject to
certain policy limits, deductibles and self insurance arrangements, and will continue to carry such
insurance if it is economical to do so. Should an uninsured or underinsured loss occur, the Company
could lose its investment in, and anticipated profits and cash flows from, one or more of its properties,
but the Company would continue to be obliged to repay any recourse mortgage indebtedness on such
properties.
The Company does not customarily carry title insurance, except in specific circumstances
when it is deemed necessary.
Indexation for Inflation and Duration of North American Lease Contracts
The fixed rents in the Company´s lease contracts in Canada and the United States do not
normally provide for adjustments following a general change in prices. As a result, the Company’s
revenues adjusted for inflation could be materially adversely affected from an unexpected rise in
inflation. The lease contracts of the Company in Canada and the United States typically have terms of
up to five years with an option to extend at the sole discretion of the tenant for two to three renewal
periods of typically five years), which is shorter than contracts in other markets of where the
Company operates and its revenues might be less stable as a result of contracts that are not promptly
renewed. If contracts are not renewed and if the Company is unable to find new tenants, this could
have a materially adverse effect on the business, operating results or financial condition of the
Company.

Access to Capital
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The real estate industry is very capital intensive. Homburg will require access to capital to
maintain its properties and to fund its growth strategy. There is no assurance that capital will be
available when needed or on favorable terms.
Dilution
Under the authorized capital of the Company, an unlimited number of Class A Shares may be
issued, including under the Stock Option Plan and Dividend Reinvestment Plan. Any issuance of
Class A Shares, including shares issued in consideration for properties acquired by the Company, may
have a dilutive effect on the current Shareholders. See paragraph 10.2 “Growth History”.
Interest Rate Exposure
The assets and liabilities of the Company have fixed and floating interest rate components
resulting in an exposure to interest rate fluctuations. These fluctuations in interest rates will have an
impact on the earnings of the Company. As a result of increased interest rates, the Company’s
financial results and condition or operating results could be materially adversely affected.
Currency Exposure
The Company conducts its business in multiple currencies, principally the Canadian dollar,
the euro and the U.S. dollar and the Canadian dollar. A significant amount of the Company’s revenues
are currently generated in euros. This may change over time as the Company continues to expand its
operations, including for example the Alexis Nihon Acquisition which generates all of its revenues in
Canadian dollars. The principal currency exchange risk of the Company arises from the fact that the
financial records of Canadian operations are maintained in Canadian dollars, U.S. revenues are in U.S.
dollars and European revenues are in euros. Upon preparing consolidated financial statements, the
Company’s Canadian dollar-denominated consolidated reported financial results can be affected by
changes in the relative value of the U.S. dollar and the euro against the Canadian dollar. Fluctuations
in currency values also distort period-to-period comparisons of financial performance. Given the high
volatility of currency exchange rates, there can be no assurance that Company will be able to
effectively manage its currency risk to minimise the impact on its business. Exposure to currency
exchange risk could have a material adverse effect on the Company’s business, financial condition,
results of operations or cash flows.
The Company mitigates a portion of its currency risk on mortgage bond debt denominated in
euros through a currency guarantee agreement with Uni-Insurance Inc. See Chapter 37 “MD&A”
under the heading “Financial Instruments and Other Instruments”. Currency risk for other expenses or
amounts payable denominated in U.S. dollars and euros is substantially mitigated by U.S. dollar and
euro revenue flows from property rentals.
Environmental Matters
As owner and manager of real property, the Company is subject to various U.S., Dutch,
German and Canadian federal, provincial, state and municipal laws relating to environmental matters.
Under these laws, the Company could be held liable for the costs, which may be significant, of, or
removal and remediation of, certain hazardous substances or wastes released or deposited on or in its
properties or disposed of at other locations. The failure to remove or remediate such substances, if
any, could adversely affect the Company’s ability to sell its real estate or to borrow using real estate
as collateral, and could potentially also result in claims or other proceedings against the Company.
Although Homburg is currently not aware of any material non-compliance with environmental laws at
any of its properties, nor is Homburg aware of any pending or threatened investigation or action by
environmental regulatory authorities in connection with any of its properties or any pending or

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threatened claim relating to environmental conditions at its properties, there can be no assurance that
such material non-compliance, investigations or actions do not exist.
Homburg has recently implemented an environmental management program, including
policies and procedures to review and monitor environmental matters associated with its properties.
Homburg’s current environmental policy includes a requirement to obtain a Phase I environmental
assessment or review an existing Phase I environmental assessment provided by the vendor and, if
appropriate, further assessments conducted by an independent and experienced environmental
consultant before acquiring a property. Homburg currently intends to make the necessary capital and
operating expenditures to ensure compliance with environmental laws and regulations. Although there
can be no assurance regarding the costs associated with such compliance, Homburg does not currently
believe that costs relating to environmental matters, if any, would have a material adverse effect on
Homburg’s business, financial condition or results of operation.
Environmental laws and regulations can change rapidly and the Company may become
subject to more stringent environmental laws and regulations in the future. Compliance with more
stringent environmental laws and regulations could have an adverse effect on its business, financial
condition or results of operations.
Expansion and Development
It is likely that the Company will be involved in various development projects. The
Company’s obligations in respect of properties under construction, or which are to be constructed, are
subject to risks which include:
• the potential insolvency of a development partner or project manager;
• construction or other unanticipated delays;
• significant construction costs are incurred before rental or other revenues are secured, earned
or collected from the project;
• cost over-runs on the project;
• concentration of the Company´s development project in the Province of Alberta, Canada;
• unfavourable market conditions which could affect the Company´s ability to secure, earn or
collect rental or other revenues from the project;
• failure of tenants to occupy and pay rent in accordance with lease agreements, some of which
are conditional; and
• increase in interest rates during the life of the development.
Any of these risks could have an adverse effect on the financial condition of the Company or
its results of operation.
Jointly Owned Property
The Company jointly owns certain properties. In making such joint ownership investments,
there is a risk that the Company may incur a loss if a co-owner is unable to fulfil its obligations.
Payment of Taxes and Tax Reassessment
Although the Company believes that all positions it takes in its tax filings are reasonable and
appropriate, there is no assurance that a taxation authority will not challenge these positions. From
time to time, the Company engages in discussions with taxation authorities in respect of filing
positions taken by it. A challenge to certain filing positions the Company has taken, if successful
despite the Company’s efforts to defend its original position, could result in the Company being
required to pay additional taxes (including penalties and interest) and the amount of such additional
taxes could be material to the Company. The Company is not currently subject to any assessment,
reassessment or determination issued against the Company by any taxation authority.

- 27 -
The Company’s Dutch tax advisors have recently had informal discussions and
correspondence with the Dutch taxation authority during which they were informed that the taxation
authority was considering assessing the Company for real estate transfer taxes of approximately €8
million (approximately $12.1 million) in respect of Partnerships (84), (85) and (86).The Company has
not yet received a formal notice of assessment to this effect. Should the Company receive such a
notice, it intends to challenge the position taken by the taxation authority.
Although the Company is of the view that no transfer taxes are owing by such Partnerships,
there can be no assurance that the taxation authority will agree.
2.2 Risks Relating to the Alexis Nihon Acquisition
Potential for Incurring Unexpected Costs or Liabilities
Although the Company has conducted investigations in connection with the Offer for Alexis
Nihon, risks remain regarding any undisclosed or unknown liabilities of the acquired business or
assets. Following the Alexis Nihon Acquisition, the Company may discover that it has acquired
substantial undisclosed liabilities pursuant to such acquisition. Such liabilities could have an adverse
impact on the Company’s business, financial condition, results of operations or cash flows.
2.3 Risks Relating to the Offering
Investment Eligibility
There can be no assurance that the Class A Shares will continue to be qualified investments
for the Plans under the Tax Act. The Tax Act imposes penalties for the acquisition or holding of nonqualified
investments by Plans.
Market Price
A publicly traded real estate company will not necessarily trade at values determined solely
by reference to the underlying value of its real estate assets. Accordingly, the Class A Shares may
trade at a premium or a discount to values implied by the initial appraisal of the properties or the value
of such properties from time to time.
Liquidity and Volatility of Class A Shares
The Class A Shares are listed for trading on the TSX and Eurolist. There can be no assurance
that there will be sufficient liquidity in the Class A Shares to sell or buy any number of Class A
Shares at a certain price level. The Company cannot predict the extent to which an active market for
the Class A Shares will develop or be sustained after the Offering, or how the development of such a
market might affect the market price for the Class A Shares. An illiquid market for the Class A Shares
may result in lower trading prices and increased volatility, which could adversely affect the value of
the investment of holders of Class A Shares. The market price of the Class A Shares could also
fluctuate substantially due to a number of factors, including, but not limited to:
• disruption or termination of the Company’s relationships with key tenants;
• fluctuations in quarterly or yearly operating results of the Company;
• changes in the composition of Management;
• fluctuations in currency exchange rates, in particular between the U.S. dollar, the euro and the
Canadian dollar;

- 28 -
• changes in the financial performance, conditions or market valuation of the Company’s
customers or competitors;
• the issue of additional shares in the Company or a significant increase in its debt obligations;
• publication of research reports about the Company or the real estate industry by securities or
industry analysts;
• failure to meet or exceed securities analysts’ expectations relating to the Company’s financial
results;
• speculation in the press or investment community generally;
• general economic conditions, particularly as they impact consumer spending patterns; and
• war, acts of terrorism and other man-made or natural disasters.
In the past, following periods of volatility in the market price of a company’s securities,
securities litigation has often been instituted against such a company. This type of litigation, if
instituted against the Company, could result in substantial costs and a diversion of Management’s
attention and resources.

3. IMPORTANT INFORMATION
- 29 -
Homburg accepts responsibility for the information contained in this Prospectus. To the best
of knowledge and belief of Homburg (having taken all reasonable care to ensure that such is the
case), the information contained in this Prospectus is in accordance with the facts and does not omit
anything likely to affect the import of such information.
The information included in this Prospectus reflects the position at the date of this document
and under no circumstances should the issue and distribution of this Prospectus after the date of its
publication be interpreted as implying that the information included herein will continue to be correct
and complete at any later date.
This Prospectus is governed by and construed in accordance with the laws of the Netherlands.
The District Court of Amsterdam (Rechtbank Amsterdam) and its appellate courts are to have
exclusive jurisdiction to settle any disputes which might arise out of or in connection with this
Prospectus. Accordingly, any legal action or proceedings arising out of or in connection with the
Prospectus, must be brought exclusively in such courts.
3.1 Selling restrictions
This Prospectus has been prepared for the sole purpose of seeking admission to trading on
Eurolist of the Listing Shares. No offering of securities is being made pursuant to this Prospectus.
3.2 Forward-Looking Statements
Certain statements in this Prospectus and in the documents incorporated by reference in this
Prospectus are forward-looking statements and are prospective in nature. Forward-looking statements
are not based on historical facts, but rather on current expectations and projections about future
events, and are therefore subject to risks factors which could cause actual results to differ materially
from the future results expressed or implied by the forward-looking statements. These statements
generally can be identified by the use of forward-looking words such as “may”, “should”, “will”,
“could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”, or “continue” or the negative
of such words. or similar variations. Such statements are qualified in their entirety by the inherent
risks factors surrounding future expectations. Important risk factors that could cause actual results to
differ materially from the expectations of Homburg include, among other things, general economic
conditions affecting real property investments, the ability to attract and retain tenants, the credit and
financial stability of the tenants, reliance on Richard Homburg as a significant shareholder, Chairman
of the board of directors and Chief Executive Officer of the Company, reliance on the continued
delivery of services by Homburg Canada Incorporated pursuant to property and asset management
agreements, competition (both nationally and internationally), the ability to manage growth, risks
associated to the international operations of the Company, the payment of fixed costs, risks associated
to debt financing, including the degree to which the Company is leveraged, the illiquid nature of real
property investments and risks relating to the Alexis Nihon Acquisition (as defined in Chapter 4
“Glossary of Terms”). Such forward-looking statements should, therefore, be construed in light of
such risk factors, and the Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on these forward-looking statements. The
statements are made as of the date of this Prospectus and supersede any forward-looking statements
contained in any previous public filings. For more information on the risk factors that could cause the
Company’s actual results to differ from current expectations, please see Chapter 2 “Risk Factors”.
3.3 Market Data
All references to market data, industry statistics and industry forecasts in this Prospectus
consist of estimates compiled by industry professionals, organisations, analysts, publicly available

- 30 -
information or the Company’s knowledge of its revenues and markets. Industry publications generally
state that their information is obtained from sources they believe reliable but that the accuracy and
completeness of such information is not guaranteed and that the projections they contain are based on
a number of significant assumptions. The Company has not independently verified the information in
such industry publications and therefore cannot guarantee its accuracy or completeness. In addition, in
many cases the Company has made statements in this Prospectus regarding its industry or market
position based on industry forecasts, market research and internal surveys as well as the own
experience of the Company. Although the Company believes these sources are reliable, as the
Company does not have access to the information, methodology and other bases for such information,
the Company has not independently verified the information and therefore cannot guarantee its
accuracy and completeness.

4. GLOSSARY OF TERMS
- 31 -
“1933 Act” means the United States Securities Act of 1933 as amended;
“$” means the Canadian dollar;
“ABCA” means the Business Corporations Act (Alberta);
“Additional Shares” means the additional Class A Shares which will be issued by the Company
upon the exchange of the subscription receipts for Class A Shares purchased by the Underwriter upon
the exercise in whole or in part of the Over-Allotment Option;
“AFM” means the Autoriteit Financiële Markten, the financial markets authority of the Netherlands;
“Alexis Nihon” means Alexis Nihon Real Estate Investment Trust;
“Alexis Nihon Acquisition” means the acquisition by Homburg Acquisition of all of the issued and
outstanding units of Alexis Nihon pursuant to the Offer for Alexis Nihon and the Alexis Nihon
Capital Reorganization;
“Alexis Nihon Capital Reorganization” means the capital reorganization of Alexis Nihon pursuant
to which the unitholders of Alexis Nihon (other than Homburg Acquisition) exchanged their units for
redeemable special units that were redeemed at a redemption price of $18.60 in cash per unit;
“Alexis Nihon Co-Owned Properties” means certain Alexis Nihon Industrial and Office Properties
that are co-owned by Alexis Nihon and a third party;
“Alexis Nihon Industrial and Office Properties” means the office and industrial properties of
Alexis Nihon (excluding the office component of Place Alexis Nihon) which the Company has agreed
to cause Alexis Nihon to sell to Cominar pursuant to the Cominar Asset Sale Agreement;
“Articles” means the articles of incorporation of the Company and historical amendments and
restatements to such articles;
“Audit Committee” means the audit committee of the Company;
“Basic Realty” means Basic Realty Investment Corporation;
“BC” means the Canadian province of British Columbia;
“Board of Directors” means the board of directors of the Company;
“Book-Entry System” means the book-based system administered by CDS;
“Bridge Loans” means the senior and junior secured non-revolving bridge loans provided under the
Credit Agreement to fund the Alexis Nihon Acquisition;
“Business Day” means a day, other than a Saturday, Sunday or statutory holiday, when banks are
generally open in the City of Montréal, in the Province of Québec, for the transaction of banking
business;
“Canadian GAAP” means Canadian generally accepted accounting principles;
“Capitalization Rate” means expected year 1 cash net operating income divided by total asset value
including transaction costs related thereto;
“CDS” means CDS Clearing and Depository Services Inc.;
“Cedar Joint Venture Agreement” means the agreement entered into by Cedar Shopping Centers
and Homburg Holdings (U.S.) Inc. described in paragraph 14.2 “Other Recent Developments” under
the heading “Joint Venture with Cedar Shopping Centers”;
“Cedar Shopping Centers” means Cedar Shopping Centers, Inc.;
“Class A Preferred Shares” means the Class A preferred shares in the capital of the Company;
“Class A Shares” means the Class A subordinate voting shares in the capital of the Company;
“Class B Preferred Shares” means the Class B preferred shares in the capital of the Company;
“Class B Shares” means the Class B multiple voting shares in the capital of the Company;
“Cominar” means Cominar Real Estate Investment Trust;
“Cominar Asset Sale Agreement” means the agreement between the Company and Cominar dated
February 19, 2007 pursuant to which Homburg agreed to cause Alexis Nihon to sell the Alexis Nihon
Industrial and Office Properties to Cominar for $592 million, including the assumption of debt
relating to those properties, within 60 days of the Alexis Nihon Acquisition;

- 32 -
“Cominar Sale” means the sale to Cominar of the Alexis Nihon Industrial and Office Properties
pursuant to the Cominar Asset Sale Agreement;
“Company” or “Homburg” means Homburg Invest Inc.;
“Credit Agreement” means the credit agreement dated April 4, 2007 between Homburg Acquisition
and an affiliate of BMO Nesbitt Burns Inc. providing for the Bridge Loans;
“CRA” means the Canada Revenue Agency;
“DBRS” means Dominion Bond Rating Service Limited;
“Dividend Reinvestment Plan” means the dividend reinvestment plan of the Company;
“Directors” means the members of the Board of Directors of the Company;
“Escrowed Funds” means the proceeds from the sale of the subscription receipts (including those
from the sale of the additional subscription receipts, as applicable) in respect of Class A Shares net of
50% of the Underwriters’ fee for the Offering and of the additional subscription receipts in respect of
additional Class A Shares, if applicable;
“DNB” means De Nederlandsche Bank N.V.;
“EEA” means the European Economic Area;
“Euribor” means the Euro Interbank Offered Rate;
“Eurolist” means the stock market operated by Euronext Amsterdam N.V. under the name Eurolist
by Euronext Amsterdam;
“Euronext” means Euronext Amsterdam N.V.;
“Executive Committee” means the executive committee of the Company;
“Existing Asset Management Agreements” means the asset management agreements entered into
from time to time by each of the Company and most of its Subsidiaries with Homburg Canada relating
to the management of the assets owned by the Company and such Subsidiaries;
“Existing Property Management Agreements” means the property management agreements
entered into from time to time by each of the Company and most of its Subsidiaries with Homburg
Canada relating to the management of the properties owned by the Company and such Subsidiaries;
“Existing Shares” means all 12,307,604 Class A Shares issued prior to the Offering that have not yet
been admitted to listing on Eurolist;
“FFO” means funds from operations, a non-Canadian GAAP financial measure;
“Financial Supervision Act” means the Wet op het financieel toezicht;
“General Partner” means Homburg LP Management Incorporated;
“GST” means goods and services tax;
“Homburg Acquisition” means Homburg Acquisition Inc.;
“Homburg Canada” means Homburg Canada Incorporated;
“Homburg Participaties” means Homburg Participaties B.V.;
“Homburg Parties” means, collectively, Richard Homburg, the General Partner, Homburg Canada
and other entities directly or indirectly controlled by Richard Homburg;
“Homburg Vastgoed” means Homburg Vastgoed Management B.V.;
“IFRS” means International Financial Reporting Standards;
“Limited Partners” means the limited partners of the Partnerships;
“Listing Shares” means the New Shares and the Existing Shares;
“Management” means the management of the Company and of Homburg Canada;
“MD&A” means Management’s Discussion and Analysis of Operations and Financial Condition of
the Company for the three-month period ended March 31, 2007, prepared in accordance with
Canadian GAAP;
“Master Property and Asset Management Agreement” means the master property and asset
management agreement entered on June 13, 2007 by each of the Company and most of its
Subsidiaries with Homburg Canada described in paragraph 13.7 “Related Party Transactions” ubder
the heading “Agreements with Related Parties—Master Property and Asset Management Agreement”;
“Minority Partnerships” means the Partnerships of which the Company is not the sole Limited
Partner;

- 33 -
“New Shares” means the Offer Shares and any Additional Shares;
“Non-Competition Agreement” means the non-competition agreement entered into on June 13,
2007 between each of the Homburg Parties and Homburg described under “Management of Homburg
— Non-Competition Agreement”;
“Offer for Alexis Nihon” means the offer of Homburg Acquisition dated February 27, 2007 to
purchase all of the units of Alexis Nihon at a price of $18.60 per unit;
“Offer Shares” means the Class A Shares issued pursuant to the Offering;
“Offering” means the offering to non-EEA residents of subscription receipts in respect of Class A
Shares on the basis of a prospectus issued in Canada on June 5, 2007 and subject to the terms thereof;
“Officers” means the officers of the Company;
“Over-Allotment Option” means an option granted to the Underwriters to cover over-allotments, if
any, and for market stabilization purposes which may be exercised in whole or in part for a period of
30 days from closing of the Offering, entitling them to purchase up to a maximum of 5,430,000
subscription receipts in respect of Additional Shares;
“Partnerships” means the limited partnerships of which the Company is a Limited Partner;
“Plans” means registered retirement income funds, deferred profit sharing plans, registered retirement
savings plans and registered education savings plans, collectively;
“Preferred Shares” means, collectively, the Class A Preferred Shares and Class B Preferred Shares;
“Proposed Amendments” means all specific proposals to amend the Tax Act publicly announced by
or on behalf of the Minister of Finance (Canada) prior to the date of this Prospectus;
“Prospectus” means this prospectus, a prospectus for the purpose of Article 3 of Directive
2003/71/EC; “Prospectus Directive” means Directive 2003/71/EC;
“SEDAR” means the System for Electronic Document Analysis and Retrieval;
“ShareCo” means Homburg ShareCo Inc.;
“Shareholders” means the shareholders of the Company;
“Single Tenant Triple Net Lease” means a lease under which the lessee is the sole tenant occupying
the relevant property and pays rent to the lessor, as well as generally all other costs and expenses that
arise from the use of the property, such as utilities, property taxes, insurance and maintenance
expenses;
“Stock Option Plan” means the stock option plan of the Company which was originally approved by
the Shareholders in 1999 and amended with the approval of the TSX and the Shareholders at the
annual and special meeting of Shareholders held on April 1, 2005;
“Subsidiary” means the subsidiaries of the Company, including the Partnerships;
“Support Agreement” means the support agreement entered into by the Company with Alexis Nihon
on February 19, 2007;
“Tax Act” means the Income Tax Act (Canada) and the Income Tax Regulations (Canada) as
applicable;
“TSX” means the Toronto Stock Exchange;
“Underwriters” means BMO Nesbitt Burns Inc., of 1501 McGill College Avenue
Suite 3200 Montréal, QC H3A 3M8; CIBC World Markets Inc., RBC Dominion Securities Inc.,
National
Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Wellington West Capital
Markets Inc. and Beacon Securities Ltd.;
“Underwriting Agreement” means the underwriting agreement dated June 5, 2007 between the
Company and the Underwriters;
“Uni-Invest” means Uni-Invest Holdings N.V.; and
“Valuation Model” means the model developed by the Company to value the Alexis Nihon
properties as per December 31, 2006.

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5. TERMS USED TO DESCRIBE HOMBURG AND ITS MANAGEMENT
A majority of Homburg’s assets are held through its Subsidiaries, including the Partnerships.
Accordingly, in this Prospectus, where the context so requires, the terms “Homburg” and “Company”
refer to the Company and the Subsidiaries taken as a whole. Similarly, references to the properties, the
portfolio of properties or investments in properties, development of properties or operations of the
Company apply to both the Company and the Subsidiaries, taken as a whole.
Most of the property and asset management activities of Homburg and its Subsidiaries have
been performed by Homburg Canada pursuant to the Existing Property Management Agreements and
the Existing Asset Management Agreements, and will be performed pursuant to the Master Property
and Asset Management Agreement. These management activities include general property
management services, strategic planning, marketing, financial reporting and public disclosure,
advisory and acquisition and disposition services. Accordingly, in this Prospectus, the term
“Management” refers to the Management of the Company and of Homburg Canada, taken as whole,
and references to the management of the Company or its assets or properties shall mean such
management activities as conducted by Homburg and Homburg Canada. See paragraph 13.7 “Related
Party Transactions” under the heading “Agreements with Related Parties” for more information on
Homburg Canada and the services it provides.
6. RELIANCE ON THIRD PARTY INFORMATION
This Prospectus does not contain third party information except where indicated otherwise. At
all places where third party information has been included, the source thereof is given.
Certain information concerning entities other than Homburg or its Subsidiaries as well as
industry and market data used in this Prospectus, including the documents incorporated by reference
in this Prospectus, were obtained by Management through company research, surveys and studies
conducted by third parties and industry and general publications. Industry surveys, studies and
publications generally state that they have obtained information from sources believed to be reliable,
but do not guarantee the accuracy and completeness of such information. While Management believes
that each of these surveys, studies and publications is reliable, neither Management nor the
Underwriters make any representations as to the accuracy of such information. Similarly,
Management believes that its internal research and analysis is reliable, but it has not been verified by
any independent sources.
All third party information has been accurately reproduced and that as far as the Company is
aware and is able to ascertain from information published by that third party, no facts have been
omitted which would render the reproduced information inaccurate or misleading.
Further, all of the information contained in this Prospectus concerning the business of Alexis
Nihon has been derived from Alexis Nihon’s public reports and securities filings available through the
Internet on SEDAR at www.sedar.com or has been provided by management of Alexis Nihon prior to
the Alexis Nihon Acquisition. Neither Management nor the Underwriters have independently verified
such information, and neither the Company nor the Underwriters make any representations as to the
accuracy of such information. See also paragraph 2.2 “Risks Relating to the Alexis Nihon
Acquisition”– under the heading “Potential for Incurring Unexpected Costs or Liabilities”.

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7. CURRENCY AND EXCHANGE RATE INFORMATION
The Company publishes its financial statements in Canadian dollars and all dollar amounts set
forth in this Prospectus are in Canadian dollars, unless otherwise indicated. The following table sets
forth, for each period indicated, the high and low exchange rates for Canadian dollars expressed in
euros and U.S. dollars, the average of such exchange rates on each Business Day during such period,
and the exchange rate at the end of such period, based upon the noon spot rate on each Business Day
as reported by the Bank of Canada. The exchange rates below are provided solely for information and
convenience. No representation is made that the euro or U.S. dollar could have been, or could be,
converted into Canadian dollars at these rates.
Year Ended
December 31, 2006
Year Ended
December 31, 2005
Year Ended
December 31, 2004
Noon Rate at End of Period ....... €0.6503 U.S.$0.8581 €0.7244 U.S.$0.8577 €0.6138 U.S.$0.8308
Average...................................... €0.7024 U.S.$0.8818 €0.6627 U.S.$0.8253 €0.6185 U.S.$0.7683
High €0.7395 U.S.$0.9099 €0.7366 U.S.$0.8690 €0.6480 U.S.$0.8493
Low............................................ €0.6503 U.S.$0.8528 €0.6098 U.S.$0.7872 €0.5912 U.S.$0.7159
On May 3, 2007, the last trading day prior to the announcement of the Offering, the noon spot
rate published by the Bank of Canada was $1.5017 per euro and $1.1070 per U.S. dollar and the noon
spot rate was €0.6659 or U.S.$0.9033 per Canadian dollar. Unless otherwise indicated, any currency
conversion in this short form prospectus is made using the applicable noon spot rate in effect as at that
date.
8. DOCUMENTS INCORPORATED BY REFERENCE
Information has been incorporated by reference in this Prospectus from documents filed with
securities commissions or similar authorities in Canada. Copies of the documents incorporated herein
by reference may be obtained on request without charge from the Secretary of the Company at Suite
600, 1741 Brunswick Street, Halifax, Nova Scotia, B3J 3X8 (telephone: +1 902 468-3395) or by
accessing the disclosure documents available through the Internet on the Canadian System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. A copy of the permanent
information record may be obtained without charge from the Secretary of the Company at the
above-mentioned address and telephone number and is also available electronically at
www.sedar.com.
The following documents of the Company, which have been filed with the AFM and with securities
commissions or other similar authorities in Canada, are specifically incorporated by reference into and
form an integral part of this Prospectus.
− Audited Consolidated Financial Statements of Homburg for the years 2004 and 2005
prepared in accordance with Canadian GAAP;
− Audited Consolidated Financial Statements of Alexis Nihon for the years 2004 and 2005
prepared in accordance with Canadian GAAP;
− the Annual Information Form of the Company dated April 2, 2007 for the financial year
ended on December 31, 2006;
− Management’s Discussion and Analysis of Operations and Financial Condition of the
Company for the financial year ended December 31, 2006, prepared in accordance with
Canadian GAAP;

- 36 -
− the Amended and Restated Business Acquisition Report of the Company dated April 17,
2007 relating to the acquisition by Homburg of all of the issued and outstanding shares in
the capital of Valbonne Real Estate 5 B.V., a private company organised under the laws
of the Netherlands, from Hofer 2 Corporation N.V., an arm’s length party to Homburg;
− the Information Circular of the Company dated May 10, 2007 relating to the annual
general meeting of shareholders to be held on June 15, 2007;
− the Material Change Report dated January 9, 2007 relating to the private placement of
6,368,164 Class A Shares;
− the Material Change Report dated January 22, 2007 relating to Homburg’s intention to
sell various assets under construction;
− the Material Change Report dated January 31, 2007 relating to the private placement of
6,368,164 Class A Shares;
− the Material Change Report dated February 23, 2007 relating to the Offer for Alexis
Nihon;
− the Material Change Report dated April 13, 2007 relating to the tender of units of Alexis
Nihon to the Offer for Alexis Nihon; and
- the Material Change Report dated May 4, 2007 relating to the acquisition of 63 properties
from SEB Group.
Other documents of the type referred to above as well as any business acquisition reports and
any material change reports (excluding confidential material change reports) may be filed by the
Company with the AFM and with securities commissions or similar authorities in the provinces and
territories of Canada subsequent to the date of this Prospectus. Any such documents may contain
information that is relevant to the disclosures made in this Prospectus.
The Summary Appraisal Report of Place Alexis Nihon dated November 27, 2006 and the
Valuation Report relating to the Alexis Nihon Retail Portfolio (excluding Place Alexis Nihon) dated
as of January 1, 2007, which have been filed with the AFM, are specifically incorporated by reference
into and form an integral part of this Prospectus. Copies of both reports can be obtained without
charge from the listing agent (SNS Securities N.V., Nieuwezijds Voorburgwal 162, 1012 SJ
Amsterdam, the Netherlands) and are also available electronically at www.homburg.com.
The Audited Consolidated Financial Statements of the Company for the years 2004 and 2005
prepared in accordance with IFRS, which are included in the prospectus of the Company dated June 6,
2006, are specifically incorporated by reference into and form an integral part of this Prospectus.
Any statement contained in this Prospectus or in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein or in any other subsequently filed document
that also is or is deemed to be incorporated by reference herein modifies or supersedes that statement.
The modifying or superseding statement need not state that it has modified or superseded a prior
statement or include any other information set forth in the document that it modifies or supersedes.
The making of a modifying or superseding statement shall not be deemed an admission for any
purposes that the modified or superseded statement, when made, constituted a misrepresentation, an
untrue statement of a material fact or an omission to state a material fact that is required to be stated
or that is necessary to make a statement not misleading in light of the circumstances in which it was
made. Any statement so modified or superseded shall not be deemed in its unmodified or superseded
form to constitute a part of this Prospectus.

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9. PRESENTATION OF FINANCIAL STATEMENTS
Financial standards
Unless otherwise indicated, all financial information included and incorporated by reference
in this Prospectus is determined using Canadian GAAP. The financial statements included or
incorporated by reference in this Prospectus (other than the Audited Consolidated Annual Financial
Statements of the Company for the financial year ended December 31, 2006 and the Unaudited
Consolidated Interim Financial Statements of the Company for the three-month period ended March
31, 2007, each prepared in accordance with IFRS, and other than the financial statements of MoTo
Objekt Campeon GmbH & Co. KG for the financial year ended December 31, 2004 and December
31, 2005 and the interim financial statements of MoTo Objekt Campeon GmbH & KG as of and for
the four month period ended April 30, 2006, which are prepared on the basis of IFRS) have been
prepared in accordance with Canadian GAAP, which differ from IFRS. Therefore, the Audited
Consolidated Annual Financial Statements of the Company for the financial year ended December 31,
2006 and the Unaudited Consolidated Interim Financial Statement of the Company for the threemonth
period ended March 31, 2007, each prepared in accordance with Canadian GAAP, the
Unaudited Pro Forma Combined Financial Statements of Homburg for the year ended December 31,
2006 and the three-month period ended March 31, 2007, the Audited Consolidated Financial
Statements of Alexis Nihon for the years ended December 31, 2006 and 2005, the Unaudited
Consolidated Financial Statements of Alexis Nihon for the three-month period ended March 31, 2007
and the Schedules of Selected Financial Statements of Alexis Nihon for the year ended December 31,
2006 and the three-month period ended March 31, 2007 included or incorporated by reference in this
Prospectus may not be comparable to financial statements prepared in accordance with IFRS.
FFO is not a measure recognized under Canadian GAAP and does not have a standardized
meaning prescribed by Canadian GAAP. FFO is presented in this Prospectus because Management
believes this non-Canadian GAAP measure is a relevant measure of the ability of Homburg to earn
income and distribute dividends to Shareholders. FFO, as computed by Homburg, may differ from
similar computations as reported by other similar organizations and, accordingly, may not be
comparable to FFO as reported by such organizations. FFO is calculated by reference to net income of
Homburg on a consolidated basis, as determined in accordance with Canadian GAAP, subject to
certain adjustments as described in Homburg’s MD&A included or incorporated by reference in this
Prospectus. Reconciliations of net income determined in accordance with Canadian GAAP to FFO are
presented in Homburg’s MD&A. FFO should not be construed as an alternative to net income or cash
flow from operating activities determined in accordance with Canadian GAAP as an indicator of
Homburg’s performance.

10. THE COMPANY
10.1 Overview
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Homburg is an international real estate investment and development company based in
Halifax, Nova Scotia. Homburg owns and develops a diversified portfolio of quality real estate,
including office, retail, industrial and residential apartment and townhouse properties in Canada,
Europe and the United States. The Company also owns land assets for residential and commercial
development in Canada, in Calgary and Edmonton, Alberta, Montréal, Québec and Charlottetown,
Prince Edward Island.
Over the past several years, Homburg has become increasingly active in the direct
development of properties. These development activities have been primarily conducted in Calgary,
Alberta, and have included both commercial and multi-unit residential projects. In late 2006,
Homburg also entered into partnerships for two development projects in Montréal, Québec.
Homburg is registered with the Alberta Registrar of Corporations under corporate access
number 2010010615. The head and principal offices of Homburg are located Suite 600, 1741
Brunswick Street, Halifax, Nova Scotia B3J 3X8, Canada and its registered office is located at 3700,
400 Third Avenue S.W., Calgary, Alberta T2P 4H2, Canada. The Company’s phone number is +1 902
468-3395 and its facsimile number is +1 902 468-2457.
Homburg is the successor company of Uni-Invest Ltd., which became a publicly listed
company in 2000 as a result of a reverse take-over of Basic Realty. Basic Reality was continued under
the ABCA on October 21, 1999, further to the amalgamation of Northern Glacier Resources Inc. and
844717 Alberta Ltd. on the same date. Basic Realty was a public company that became listed on the
Canadian Venture Exchange (now the TSX Venture Exchange) on December 10, 1999. On September
19, 2000, Basic Realty agreed to acquire 100% of the issued and outstanding shares of Uni-Invest
Canada Ltd., a private real estate investment company, in a share exchange transaction. This share
exchange transaction closed on October 23, 2000, at which time Basic Realty changed its name to
Uni-Invest Ltd. On January 10, 2001, Uni-Invest Ltd. changed its name to Homburg Invest Inc. and
the shares of the Company were delisted from the Canadian Venture Exchange and listed on the TSX.
The Class A Shares and the Class B Shares of Homburg are listed and posted for trading on
the TSX under the symbols HII.A and HII.B, respectively. The Class A Shares are also listed and
posted for trading on Eurolist under the symbol HII. See Chapter 20 “Description of Share Capital”.
10.2 Growth History
In October 2000, the Company had approximately $89 million in real estate assets. In 2003,
Homburg made significant acquisitions, including the acquisition of 16 properties in the United States
from Homburg Uni-Corp Inc., a company controlled by Richard Homburg. In that year, the Company
also acquired seven standalone Zellers locations across Canada, which added approximately 700,000
square feet to its portfolio. By December 31, 2003, the Company’s real estate assets had grown to
approximately $248 million.
In 2004, the Company continued to acquire Canadian real estate, including 10 Pizza Hut
locations in the Province of Québec, the initial acquisition of land for development in Calgary,
Alberta and the construction of the Vintage Towers II office complex in Calgary, Alberta to reach
approximately $282 million of real estate assets at the end of December 2004. The Board of Directors
approved a strategic growth plan which included development of significant properties in Alberta,
with to the objective of diversifying its property portfolio across Canada, Europe and the United
States.
In early 2005, further acquisitions were completed, including the acquisition of additional
development properties in Calgary, Edmonton, and Grande Prairie, Alberta, which included the

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Citadel West and Castello Tower properties, the Inverness Estates condominium development, the
Churchill Estates condominium tower and the Homburg Harris Centre. The Homburg Harris Centre is
currently being developed into a 633,000 square foot commercial office tower in downtown Calgary.
In June 2005, growth continued with the acquisition of 11 commercial properties, comprised
of office buildings, shopping centres, logistics centres, production, and warehousing and distribution
facilities located in prominent locations in Germany and the Netherlands. These included the Quelle
complex in Nurnburg, Germany and the Deutsche Annington office complex in Bochum, Germany,
which marked the Company’s first acquisition in Europe. Total consideration for these properties was
approximately $496 million resulting in a Capitalization Rate of 7.1% implied capitalization rate of
7.1%, and was paid through the assumption of debt of approximately $391 million at a weighted
average interest rate of 4.5%, cash of approximately $35 million and the issuance to the vendor Class
A Shares in an amount of $70 million.
In December 2005, two other office/warehouse complexes located in Amersfoort and
‘t Harde in the Netherlands were acquired for total consideration of approximately $25 million
resulting in a Capitalization Rate of 9.2%, paid through the assumption of debt of approximately $18
million at a weighted average interest rate of 4.4%, cash of approximately $5 million and the issuance
to the vendor Class A Shares in an amount of approximately $2 million. As at December 31, 2005, the
Company’s real estate assets totalled approximately $817 million.
Growth continued in 2006, with the acquisition in February of that year of an additional eight
Pizza Hut locations and one Swiss Chalet and Harvey’s location in Québec and Ontario on a saleleaseback
basis for total consideration of $9 million in cash resulting in a Capitalization Rate of 9.0%.
In March 2006, the Company acquired a 17 -tenant retail shopping centre in Wittenburg, Germany for
total consideration of approximately $42 million resulting in a Capitalization Rate of 7.7%, which was
paid through the assumption of a debt at an interest rate of 5.7% of approximately $33 million and
cash of approximately $9 million.
In May 2006, the Company announced that Homburg BPF Canada, a joint venture with SNS
Property Finance (formerly Bouwfonds Property Finance), a major Dutch financial institution, and an
affiliate of Télémedia Ventures Inc. (Montréal, Québec), planned to develop a five acre site on the
eastern edge of Old Montréal, Québec. The plans for the joint venture include a multi-use upscale
urban development, including the refurbishment of the former Château Viger built in 1898, and is
expected to result in a total investment by the joint venture parties of over $350 million. Homburg has
a one-third interest in the joint venture.
In May 2006, the Company also acquired the headquarters and research centre of Infineon
Technologies AG, a New York and Frankfurt stock exchange listed company based in Munich,
Germany that offers semi-conductor and system solutions. This facility consists of 12 buildings,
totalling approximately 1.6 million square feet. It was acquired for total consideration of
approximately $635 million resulting in a Capitalization Rate of 6.5%, paid through the assumption of
debt of approximately $480 million at a weighted average interest rate of 5.1% and a note payable of
approximately $155 million, which has been paid.
In June 2006, the Company completed the acquisition of four large office properties in
Groningen (KPN Telecom Head Office), Eindhoven (Philips Lighting Headquarters and Research
facilities) and Rotterdam (two David Lloyd buildings) in the Netherlands for a total consideration of
approximately $200 million resulting in a Capitalization Rate of 6.4%. These properties total
approximately 970,000 square feet and are occupied by world class public companies under long-term
leases. The consideration for these assets was paid through the assumption of debt of approximately
$150 million at a weighted average interest rate of 4.9%, cash of approximately $17 million and the
issuance to the vendor of Class A Shares in an amount of approximately $33 million.
In December 2006, the Company acquired four office complexes located in Eindhoven,
Sittard, Rotterdam and Tilburg in the Netherlands for approximately $61 million resulting in a

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Capitalization Rate of 7.3%, paid through the assumption of debt of approximately $51 million at a
weighted average interest rate of 4.9%, cash of approximately $4 million and the issuance to the
vendor of Class A Shares in an amount of approximately $6 million.
On April 6, 2007, the Company announced that Homburg Acquisition had taken up
20,663,699 units of Alexis Nihon, representing approximately 70% of the issued and outstanding
units, under the Offer for Alexis Nihon. Homburg Acquisition paid for such units on April 11, 2007
and, further to the completion of the Cominar Sale, now owns 100% of the issued and outstanding
units of Alexis Nihon. On May 24, 2007, Alexis Nihon announced the completion of the Alexis Nihon
Acquisition through the Alexis Nihon Capital Reorganization, which was approved at a special
meeting of the unitholders of Alexis Nihon held on May 17, 2007.
On June 5, 2007, Homburg and Alexis Nihon announced that they closed the Cominar Sale
(excluding the sale of the Alexis Nihon Co-Owned Properties) effective on June 1, 2007, subject to
customary property registrations to be completed shortly following the closing, pursuant to which
Alexis Nihon sold the Alexis Nihon Industrial and Office Properties (other than the Alexis Nihon Co-
Owned Properties) to Cominar for $575 million, including the assumption of $238 million of debt
relating to those properties. See Chapter 14 “Recent Developments” for a description of the Alexis
Nihon Acquisition, the Cominar Sale and other transactions completed or announced in 2007.
The Company’s success in executing these transactions, managing the resulting growth and
accessing capital has allowed Homburg to grow its total real estate assets, on a pro forma basis to give
effect to the Alexis Nihon Acquisition and the Cominar Sale, to approximately $2.5 billion as at
March 31, 2007. To finance the initial stages of its growth, the Company relied primarily on the
proceeds of its bonds. As the Company grew, it has become a more active issuer of its equity while
continuing to issue secured and unsecured debt to fund acquisition and development.
While Homburg continued to focus on the growth of its real estate portfolio, it also started
providing its Shareholders with a return on their investment through dividend payments. In September
2004, the Company paid its first semi-annual dividend of $0.06 per share. Since then, the Company
has increased its semi-annual dividend to $0.08 per share on March 30, 2005, $0.12 per share on
September 30, 2005 and $0.18 per share on September 30, 2006. This represented an annualized
dividend yield for the Class A Shares (cash dividend declared per share / share price at year end) of
5.6% in 2005 and 5.2% in 2006. See paragraph 20.2 “Dividends, Dividend Policy and Dividend
Reinvestment Plan”.
10.3 Competitive Strengths
Economies of Scale
Homburg’s significant international portfolio of approximately $2.0 billion as at March 31, 2007
($2.5 billion as at the same date pro forma to give effect to the Alexis Nihon Acquisition and the
Cominar Sale) provides many economies of scale including:
• Improved access to capital. Homburg’s international exposure and overall scale
allows it to access the capital markets in more than one country, thereby increasing
the available financing alternatives available to it and improving the cost of capital by
eliminating exposure to any one market in isolation. The Company’s access to capital,
including its growth objectives to date. See Chapter 17 “Debt Overview”.
Homburg’s dual listing on the TSX and Eurolist provides the Company with instant
recognition in both Canada and Europe and facilitates access to these two important
capital markets. The Company will continue to monitor the capital markets in Canada,
Europe and the United States to access the most efficient sources of capital.
• Centralized management structure. Through the Company’s ongoing relationship with

Growth Profile
- 41 -
Homburg Canada and its senior management team, Homburg efficiently manages and
proactively responds to a number of portfolio considerations. This includes leveraging
tenant relationships, identifying and executing on growth opportunities on a global
basis, benefiting from cost reduction initiatives and having an efficient decision
making process that reduces transaction costs and transaction turnaround time. See
paragraph 13.7 “Related Party Transactions” under the heading “Agreements with
Related Parties” for more information on Homburg Canada and the services it
provides.
• Potential to capitalize on market consolidation. Due to its well-established portfolio of
real estate as well as its exposure to various asset classes and marketplaces, Homburg
has insight on and access to various market consolidation opportunities. Exposure and
expertise in various international markets allow Homburg to invest where pricing and
opportunities are most attractive at any given point in time. See paragraph 10.2
“Growth History”, Chapter 14 “Recent Developments” and Chapter 15 “The Alexis
Nihon Acquisition”.
The Company has grown its real estate portfolio from approximately $89 million in assets as
at December 31, 2000 to approximately $2.0 billion as at March 31, 2007. Pro forma to give effect to
the Alexis Nihon Acquisition and the Cominar Sale, the Company would have had real estate assets of
approximately $2.5 billion as at March 31, 2007.
Notes:
The following chart illustrates the Company’s asset growth from 2000 to March 31, 2007.
(1) Compound annual growth rate is calculated as ( ( Ending Value - Beginning Value ) ( 1 / # of Years ) ) -1 ) and is
based on total assets.(2) Totals and Compound Annual Growth Rate calculations are based on pro forma figures to
giving effect to the Alexis Nihon Acquisition and the Cominar Sale.
Since December 31, 2000, the Company has acquired and developed approximately 9 million
square feet of retail, office, industrial, retail and residential and mixed-use properties in Canada. The

- 42 -
Company’s current development pipeline, which includes 17 projects, demonstrates how the
Company expects to grow through development of new projects, in addition to continuing to achieve
organic growth in its existing income producing property portfolio through active tenant management.
See paragraph 10.2 “Growth History”, paragraph 11.3 “Development Projects”, Chapter 14 “Recent
Developments” and Chapter 15 “The Alexis Nihon Acquisition”.
Portfolio Diversification
The Company’s risk management strategy incorporates portfolio diversification over various
countries, portfolio types, lease durations and tenant types.
In the three-month period ended March 31, 2007, the Company derived approximately 81%
of its net operating income from Europe, 17% from Canada, and 2% from the United States. The
Company’s objective is to develop a geographically diversified portfolio of real estate assets, well
balanced over these three geographic regions. In addition, the Company’s portfolio currently consists
of four asset classes: office, industrial, retail and residential, as well as land held for development. In
the three-month period ended March 31, 2007, the Company derived approximately 65% of its net
operating income from office properties, 22% from industrial properties, 12% from retail properties
and 1% from residential properties. The Company’s strategy with respect to asset class distribution is
to diversify revenues across office, industrial and retail properties, while also pursuing residential
development projects.
The following charts illustrates (i) the geographic distribution by net operating income and (ii)
the asset class distribution by net operating income, of the Company’s real estate portfolio in the
three-month period ended March 31, 2007.
In the three-month period ended March 31, 2007, pro forma to give effect to the Alexis Nihon
Acquisition and the Cominar Sale, (i) the Company would have derived approximately 67% of its net
operating income from Europe, 31% from Canada and 2% from the United States, and (ii) the
Company would have derived approximately 58% of its net operating income from office properties,
19% from industrial properties, 21% from retail properties and 2% from residential properties.

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The following charts illustrate (i) the geographic distribution by net operating income and (ii)
the asset class distribution by net operating income, of the Company’s real estate portfolio in the
three-month period ended March 31, 2007, pro forma to give effect to the Alexis Nihon Acquisition
and the Cominar Sale.
Homburg’s lease portfolio consists of contracts with staggered maturity dates. In general, the
Company’s real estate assets located in Canada and the United States have shorter lease terms than
those in Europe. Homburg’s strategy is to effectively manage a balance between shorter lease terms,
which enable it to renew lease contracts and attract new tenants while capitalizing on increasing
market rental rates where available, and longer lease terms, where appropriate, to provide portfolio
stability and increase predictability of revenue.
As at March 31, 2007, the Company’s portfolio had a weighted average occupancy rate of
98% and the weighted average remaining term of all leases was approximately 9.3 years. The
following chart illustrates Homburg’s lease maturity schedule based on total square footage maturing
in a given year (assuming tenants do not exercise renewal options and, in respect of the leases for the
Zellers portfolio, assuming that Homburg or Zellers exercises its renewal option to extend its maturity
to 2023 prior to the expiration of the current term in 2018) as a percentage of total gross leasable area.

- 44 -
The Company’s lease portfolio is also diversified by tenant type. The Company seeks multitenant
properties, but also acquires properties with Single Tenant Triple Net Leases as attractive
opportunities become available. As at March 31, 2007, approximately 64% of Homburg´s portfolio
consisted of Single Tenant Triple Net Leases as measured by total property revenue. See also
paragraph 11.4 “Description of the Company’s Most Significant Investment Properties”.
The Company has numerous relationships with strong national and international tenants. As
illustrated in the following table, as at December 31, 2006, the Company’s 10 largest tenants
accounted for approximately 65% of its total property revenue. As at December 31, 2006, pro forma
to give effect to the Alexis Nihon Acquisition and the Cominar Sale, the Company’s 10 largest tenants
would have accounted for approximately 42% of its total property revenue.

Notes:
- 45 -
(1) Percentage based on total property revenue of Homburg for the year ended December 31, 2006, pro forma to give
effect to the Alexis Nihon Acquisition and the Cominar Sale
(2) Infineon Technologies offers semiconductor and system solutions addressing energy efficiency, mobility and
security. In the fiscal year 2006, the company reported sales of €7.9 billion and earnings before interest, taxes,
depreciation and amortization (EBITDA) of U.S.$1.8 billion with approximately 42,000 employees worldwide. With a
global presence, Infineon operates through its subsidiaries in the U.S., Asia-Pacific region from Singapore and
Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange under
the symbol IFX.
(3) Quelle AG Trading is a large provider of technical goods in the German mail order market and is part of the
Karstadt Quelle AG Group. The group reported sales in 2006 of €13.1 billion and EBITDA of €408.9 million with
approximately 55,572 employees.
(4) Assuming that Homburg or Zellers exercises its renewal option in respect of the leases for the Zellers portfolio to
extend its maturity to 2023 prior to the expiration of the current term in 2018.
(5) Following its acquisition of 63 properties from SEB Group, the Company expects to earn total lease revenue from
SEB Group of approximately $18 million per year, which would make SEB Group the second largest tenant of the
Company by property revenue. See “Recent Developments—Other Recent Developments — Acquisition of SEB
Group Property Portfolio in the Baltics”.
(6) Generally, the Company’s largest European leases, including those listed in the above table, are subject to annual
rent increases. The increases are generally based upon one of the following four methods: (i) a specific amount
increase every year, (ii) a specific percentage increase every one or two years, (iii) an annual increase based upon
an agreed percentage of the national price index, provided in certain cases that a minimum increase threshold is
met, and (iv) an annual increase based on the national price index, subject to amaximum of 5%, but not subject to
aminimum increase threshold.
(7) The Company’s leases with Zellers and Co-op Atlantic, its two largest North American tenants by property
revenue listed in the above table, are also subject to automatic rent increases over set periods of time of between
four and six years, based upon a fixed percentage increase in the case of Zellers and the consumer price index in
the case of Co-op Atlantic.
Management Expertise
Management has a strong track record in successfully operating a broad cross section of real
estate properties and development projects. Such experience allows Homburg to identify and execute
on investment opportunities across Canada, Europe and the United States. Homburg’s track record of
management success spans markets across the world and provides the Company with international
market insight.

10.4 Business Strategy
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The Company’s strategy is to develop a diversified real estate portfolio in Canada, Europe
and the United States which generates stable and growing cash flows. Homburg focuses on managing
its existing portfolio and on acquiring and developing properties that have stable cash flows and
superior growth opportunities in an effort to maximize overall return on investment. Homburg also
aims to provide its tenants with attractive office, retail, industrial and residential units by holding its
property managers to superior professional standards.
The Company intends to grow its real estate portfolio nationally and internationally through
both profitable development projects and accretive acquisitions with a focus on the creditworthiness
of tenants and predictability and stability of cash flows. Industry trends, location, traffic counts,
demographics and both the current and potential future competitive environments are some of the
many critical factors that Homburg considers when evaluating a real estate asset.
Homburg believes that a diversified real estate portfolio comprised of a mix of office, retail,
industrial and residential properties located in Canada, Europe and the United States, as well as land
assets for development, provides the Company with an optimal balance of income stability and
growth potential. In addition, and as part of its overall strategy, the Company will occasionally
acquire underperforming properties where its development and leasing expertise can be strategically
leveraged.
The Company has recently increased its presence in Canada and the United States through,
among other things, the Alexis Nihon Acquisition in Canada, as well as the Company’s recently
announced joint venture with Cedar Shopping Centers and investment in DIM Vastgoed N.V., both
increasing the Company’s stake in the United States real estate market. In addition, the Company has
recently announced an expansion of its real estate portfolio in Europe through the pending acquisition
of 63 properties in the Baltic countries of Estonia, Latvia and Lithuania from SEB Group. See Chapter
14 “Recent Developments”.
Acquisition Policy
The Company has extensive local knowledge of, and expertise and experience in, the markets
in which it operates. Homburg has local teams in place in every major geographic region where it is
active. In addition to this expertise, the Company makes use of external market research relating to
the geographic areas in which it does business. The Company employs an active acquisition strategy,
focusing on Canadian, European and United States properties through both direct and indirect
participations.
In considering whether a potential property meets the criteria for acquisition or development,
Homburg considers the following:
• relative strength of the market;
• cash flow potential, after providing for all necessary capital, leasing, development and
financing costs;
• quality of the design and construction, current physical condition, environmental
conditions, occupancy levels and tenant quality;
• location and proximity to services and amenities valued by the existing or potential
tenant(s);
• state of infrastructure and services to the property;
• terms and structure of existing leases including creditworthiness of tenants, and of any

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constraints on managing the property;
• opportunities to enhance value through professional property management and
renovation or repositioning of the property;
• below-market lease rates as compared to the other competing properties in the
relevant market;
• higher than normal expenses due to inefficient operations or lack of capital; and
• expansion or redevelopment opportunities.
Homburg has recently implemented an environmental management program, including
policies and procedures to review and monitor environmental matters associated with its properties.
Homburg’s current environmental policy includes a requirement to obtain a Phase I environmental
assessment and, if appropriate, further assessments conducted by an independent and experienced
environmental consultant before acquiring a property.
Although Homburg is currently not aware of any material non-compliance with
environmental laws at any of its properties, nor is Homburg aware of any pending or threatened
investigation or action by environmental regulatory authorities in connection with any of its properties
or any pending or threatened claim relating to environmental conditions at its properties, there can be
no assurance that suchmaterial non-compliance, investigations or actions do not exist. See Paragraph
2.1 “Risks Relating to the Business” under the heading “Environmental Matters”.
Homburg’s core strategy is to invest in real estate as a long-term investment. The exception to
this core strategy relates to its development and redevelopment projects, particularly in Alberta, where
the Company has focused on maximizing project returns and as such may include strategic
dispositions. See Paragraph 10.5 “Activities” under the heading “Developments of Real Estate –
Alberta”.
10.5 Activities
The Company’s principal business activities include the following:
Management of Real Estate
Almost all of the property and asset management activities of Homburg and its Subsidiaries
are performed by Homburg Canada pursuant to the Master Property and Asset Management
Agreement. Homburg Canada, a company indirectly controlled by Richard Homburg, has offices in
Halifax and Dartmouth, Nova Scotia, Montréal, Québec, and Calgary and Edmonton, Alberta and has
approximately 130 employees. Homburg Canada’s senior management team has extensive experience
in real estate finance, management, acquisition and development. These management activities
include general property management services, strategic planning, marketing, financial reporting and
public disclosure, advisory and acquisition and disposition services.
Homburg Canada subcontracts its European property and asset management activities for
Homburg’s European assets (excluding the Campeon Complex in Munich, Germany leased to
Infineon Technologies AG, which is managed by an unrelated third party) to Homburg Vastgoed, an
entity controlled directly and indirectly by Richard Homburg. Homburg Vastgoed performs asset and
property management services similar to those provided by Homburg Canada. In addition, Homburg
Vastgoed actively sources new acquisition and financing opportunities for the Company through its
offices in Amsterdam and Soest, the Netherlands.
Homburg Canada currently owns approximately 150,000 square feet of commercial property
and 926 residential units. Homburg Canada intends to divest itself of all of its remaining investment

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real estate properties, none of which currently meets the Company’s investment criteria. Homburg
Vastgoed does not own any income producing investment property. In addition, entities controlled
directly and indirectly by Richard Homburg currently own real estate development properties, none of
which currently meet the Company’s investment criteria. Those properties consist of seven
development sites located in Latvia and Lithuania and a parcel of land in Germany that will be
developed into approximately 75 houses. At the closing of the Offering, the Homburg Parties entered
into the Non-Competition Agreement with Homburg which restricts certain investment activities in
real estate by any of the Homburg Parties. See paragraph 13.7 “Related Party Transactions” under the
heading “Non-Competition Agreement”. No other party related to Richard Homburg owns income
producing investment properties. See paragraph 13.7 “Related Party Transactions” under the heading
“Agreements with Related Parties” for more information on Homburg Canada and the services it
provides.
Development of Real Estate
Overview
The Company currently owns 17 development properties in Alberta, Québec and Prince
Edward Island (see “Property Portfolio – Development Projects”). Management estimates that these
properties, when fully completed, would have a development costs of approximately $3 billion. Of
these development properties, 12 are under construction or in the final stages of development
planning. It is anticipated that certain of these projects would generate long-term cash flows from
leasing activities as investment properties while others, such as the Company’s condominium projects
in Alberta and Quebec, are expected to generate one-time cash flow on completion and sale.
Prior to a development project being initiated, a development budget is prepared by a
construction manager engaged by Homburg Canada. If Homburg Canada and the Company decide to
proceed with the proposed project, quotes for the required materials and labour to complete the
project are submitted for tender. In addition, the project budget is presented to various potential
financial institutions in order to obtain proposals for construction financing. The selected financial
institution then engages a cost consultant to review and determine the reasonableness of the
development budget. The cost consultant reports to the financial institution on a monthly basis on
costs incurred in the prior month, and cost to complete the project. The financial institution makes
monthly advances based on the reduction in cost to complete from the prior month.
Alberta
Reductions in Capitalization Rates in Alberta and various opportunities to acquire
development properties and land assemblies have allowed Homburg to take advantage of the vibrant
economy in Alberta while leveraging its development expertise. According to Alberta Economic
Development, over the past decade, Alberta had the highest rate of economic growth in Canada at
4.3%. In 2006, according to the Conference Board of Canada, Alberta’s economy grew by an
estimated 6.3%.
Of the Company’s 17 development projects, 13 are located in Alberta, where Homburg has
been able to identify opportunities early in the province’s growth cycle and capitalize on the demand
for both commercial and residential real estate. The Company has recently announced intentions to
sell approximately $500 million of properties currently under construction, resulting in an expected
pre-tax gain of approximately $150 million (see paragraph 14.2 “Other Recent Developments” under
the heading “Sale of Development Assets”). The sale of a majority of these properties is expected to
close in the second quarter of 2007. The remaining Alberta development projects include projects to
build approximately 985 residential condominiums, 400,000 square feet of office commercial projects
and longer term projects such as Homburg Springs, Homburg Springs West, Points North and
Henderson Farms, occupy over 500 acres of land on the outskirts of Calgary and have positioned the
Company to take advantage of the expanding Alberta marketplace. These projects, which are in the

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pre-development planning stage, are expected to consist of over 5,000 single family residential
housing units, as well as mixed-use opportunities for office and retail expansion. See Paragraph 11.3
“Development Projects”.
Québec
Management believes that attractive opportunities currently exist for development and
redevelopment projects in Montréal, Québec and that Montréal has not yet reached its full potential as
an international city. As such, Management believes that attractive growth opportunities will continue
to become available in the next few years. In addition to the Alexis Nihon Acquisition, the Company
has entered into two joint ventures in Montréal in 2006 partnering with SNS Property Finance
(formerly Bouwfonds Property Finance), a major Dutch financial institution, and Télémedia Venture
Inc. of Montréal, Québec. The joint venture will develop the famous $350 million Château Viger site
redevelopment and the $35 million condominium project at 333 Sherbrooke Street East (112 units).
With its partners, the Company is currently in the pre-development stage of transitioning the Château
Viger site and former Canadian Pacific Railway hotel and depot (circa 1898) into a multi-use upscale
urban resort project with the centerpiece to be the Château’s rebirth as a market-leading hotel. The
Company has a 33.3% interest in the Château Viger joint venture and holds 50% of the shares of
4348931 Canada Inc., the general partner of Viger Limited Partnership which was created to carry out
the joint venture.
Strategic Investments and Divestitures
During the fourth quarter of 2005 and the first quarter of 2006, Homburg acquired a 23.4%
voting interest in DIM Vastgoed N.V., a public Dutch real estate investment company listed on
Eurolist that owns 19 shopping centres totalling approximately 2.4 million square feet of leasable
area. The acquisition of the interest in DIM Vastgoed N.V. increased the Company’s exposure to
opportunities in the southeastern United States (mainly Florida).
The Company also holds, through its Subsidiaries, 50,000 common shares of Cedar Shopping
Centers, a real estate investment trust listed on the New York Stock Exchange under the symbol
“CDR”. The Company’s investment in Cedar Shopping Centers. represents approximately 0.2% of its
outstanding common shares. Richard Homburg is a member of the board of directors of Cedar
Shopping Centers.
The Company, through Homburg Holdings (U.S.) Inc., recently entered into a joint venture
with Cedar Shopping Centers, Inc. in respect of the ownership of nine shopping centres in the states of
Pennsylvania and Massachussets. The acquisition of the properties is subject to certain closing
conditions which may or may not be satisfied. Subject to the right of Cedar Shopping Centers to
postpone the closing of the acquisition of a property or to remove such property from the list of
properties being transferred from Cedar Shopping Centers under the Cedar Joint Venture Agreement,
such agreement shall automatically terminate on September 28, 2007 in the event that all of the
conditions precedent with respect to any acquisition of the properties shall not have been satisfied
prior to such date. See paragraph 14.2 “Other Recent Developments” under the heading “Joint
Venture with Cedar Shopping Centers”.
While Homburg and its Subsidiaries invest in real estate as a long-term investment, attractive
opportunities to divest occasionally present themselves. A recent example of this is the sale in 2005 of
the Homburg Vintage Towers in Calgary, Alberta. While the investment was made with a view to
generating a long-term stable revenue stream, the Company determined that it could realize a
substantial profit on the project and the building was subsequently sold for a pre-tax gain of
approximately $14.1 million.

Miscellaneous
- 50 -
During the last 12 months, Homburg or its Subsidiaries has not been party to any
governmental, legal or arbitration proceedings nor is the Company aware of any such proceedings
threatening, which may have or have had a significant adverse effect on its financial position or
profitability.
11. PROPERTY PORTFOLIO
Homburg currently owns real estate properties in British Columbia, Alberta, Ontario, Québec,
New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador in Canada, Texas
and Colorado in the United States, and in Germany and the Netherlands in Europe.
11.1 Appraisals of properties
Being a Eurolist listed Company, the Company is required to report according to IFRS. The
Company has to comply with the endorsed IAS-40 Investment Property for investment properties, and
the endorsed IAS-16 Property, Plant and Equipment for its development properties, and has chosen
the fair value method of presenting its investment and development properties in the financial
statements. The fair value of investment properties is based upon independent valuations where they
are current. The Company obtains independent valuations as a part of the due diligence carried out for
new acquisitions and for financing purposes. In the absence of current reports produced for either of
these reasons, the Company has developed its own model to assess fair value. Under this model,
Homburg first assesses the net operating income (property revenue less operating expenses) of each
property for permanent changes. If there are permanent changes, either positive or negative, the
Company must reassess the fair value of the property. Secondly, Homburg engages independent
consultants to assess the capitalization rates to be applied to each property’s net operating income to
determine the fair value. The independent consultants produce a range of 50 basis points that is
representative of the majority of the transactions for that property type in that particular market. The
Company then utilizes a rate within this range as the capitalization rate to apply to the net operating
income for each property to determine the fair value.
The Company is satisfied that this model is fair and reasonable for the following reasons:
• the Company utilizes a rate within the ranges provided by independent consultants;
• in the real estate sector, portfolios are generally valued at a premium as opposed to
summing up the individual valuations. Homburg does not factor in any portfolio
premiums, but rather assesses the value of the properties on an individual basis, and
the Company’s total is the sum of the parts;
• any disposal of assets by the Company or its Subsidiaries have been at values either
equal to or greater than the fair value the Company produced from its own valuation
model described above; and
• independent appraisals produced for financing purposes have been at values greater
than the fair value the Company produced from its own valuation model.
Appraisals are performed using the following assumptions:
• buyer and seller are typically motivated;
• both parties are well informed or well advised, and acting in what they consider their
best interests;

- 51 -
• a reasonable time is allowed for exposure in the open market;
• payment is made in terms of cash or in terms of financial arrangements comparable to
cash; and
• the price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.
11.2 Investment Properties
The following table lists the investment properties directly or indirectly owned by Homburg
as at March 31, 2007:
Legend Province/Country and Property Type
AB Alberta (Canada) NL the Netherlands O Office
BC
British Columbia
(Canada)
NS Nova Scotia (Canada) RET Retail
CO Colorado (USA) ON Ontario (Canada) IND Industrial
GER Germany PEI Prince Edward Island (Canada) RES Residential
NB
New Brunswick
(Canada)
PQ Québec (Canada)
NF
Newfoundland and
Labrador (Canada)
TX Texas (USA)
Homburg
ownership 1)
Canada
Property Province /
Country
External
appraisal date
Appraiser
100%
356 Windmill Road,
Dartmouth NS 28-Oct-03 CBRE
100%
31 Highfield Park,
Dartmouth NS 22-Jul-03 CBRE
100%
35 Highfield Park,
Dartmouth NS 22-Jul-03 CBRE
100%
11 Joseph Young
Drive, Dartmouth NS 22-Jul-03 CBRE
100%
141 Albro Lake Road,
Dartmouth NS 5-Oct-99 KAL
100% 295 George Street, NS 5-Oct-99
Sydney
KAL
100%
100%
100%
100%
100%
100%
100%
100%
5157 Morris Street –
Residential, Halifax NS 29-Jul-03 CBRE
5157 Morris Street –
Commercial, Halifax
11 Akerley/2 Morris,
NS 29-Jul-03 CBRE
Dartmouth NS 29-Jul-03 CBRE
640, 720 & 820 - 28th
Street NE, Calgary
Confederation Court
AB 15-Oct-04 CBRE
Mall, Charlottetown PEI 1-Jan-04 Altus
800-842 Crowfoot
Crescent, Calgary
2067 - 50th Avenue,
AB 8-Mar-04 CBRE
Red Deer
220-221 - 62nd
AB 30-Aug-00 APAI
Avenue SE, Calgary AB 15-Oct-04 CBRE

Homburg
ownership 1)
100%
100%
100%
100%
100%
100%
100%
38%
5.79%
5.63%
100%
100%
100%
100%
38.46%
55.55%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Property Province /
Country
- 52 -
External
appraisal date
Appraiser
253 - 62nd Avenue
SE, Calgary
6223 - 2nd Street SE,
AB 15-Oct-04 CBRE
Calgary
6227 - 2nd Street SE,
AB 15-Oct-04 CBRE
Calgary
150 Henri Dunant,
AB 15-Oct-04 CBRE
Moncton
140 Commerce Street,
NB 23-Oct-03 Altus
Moncton
1199 St. George
NB 28-Jul-03 Altus
Boulevard, Moncton
211-221 Willowbend,
Glenforest Drive,
NB 23-Sep-03 Altus
Halifax
1741 Brunswick
NS 16-May-05 CBRE
Street, Halifax
807-42nd Ave SE,
NS 10-Nov-04 CBRE
Calgary
1300 St. Peters
AB 1-Oct-00 ORAI
Avenue, Bathurst
715 Laurier Street,
NB
Dieppe
735 Laurier Street,
NB 22-Jul-03 Altus
Dieppe
678 Evangeline Street,
NB 22-Jul-03 Altus
Dieppe
3660 - 20th Avenue
NB 22-Jul-03 Altus
NE, Calgary AB 28-Oct-04 CBRE
4033 Bow Trail SW,
Calgary
229 - 11th Avenue,
AB 7-Jun-02
Calgary
231 J.D. Gauthier
AB 14-Feb-01
Boulevard, Shippagan NB
Royal
LePage
Royal
LePage
123 Halifax Street,
Moncton
85 Halifax Street
(Parking Lot),
NB 1-Oct-04 Altus
Moncton
114 Price Street,
NB
Moncton
33 Henri Dunant
NB 1-Oct-04 Altus
Street, Moncton
22 Carr Crescent,
NB 1-Oct-04 Altus
Gander
20 Record Street,
NF 1-Oct-04 Altus
Moncton
11 Wright Street,
NB 1-Oct-04 Altus
Sackville
1 MacLean Court,
NB 1-Oct-04 Altus
Port Hawkesbury
118 Wyse Road,
NS 1-Oct-04 Altus
Halifax NS 23-Apr-03 CBRE

Homburg
ownership 1)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
5%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Property Province /
Country
- 53 -
External
appraisal date
4124 - 9th Street SE,
Calgary AB 20-Aug-01
Appraiser
Royal
LePage
139th Avenue &
Manning Crossing
Dr., Calgary
950 Bedford
AB 26-Mar-01 Colliers
Highway, Bedford
619 Sackville Drive,
NS 1-Dec-99 Piccott
Lower Sackville
69 Cow Bay Road,
NS 1-Mar-01 Piccott
Eastern Passage
24 Stavenger Drive,
NS 1-Mar-01 Piccott
St. Johns
194 Chain Lake
NF 31-Oct-04 CBRE
Drive, Halifax
100 St-Jude Street,
NS 31-Oct-04 CBRE
Granby
60 Martindale
PQ 31-Oct-04 CBRE
Crescent, Ancaster
129 Queensway East,
ON 31-Oct-04 CBRE
Simcoe
600 Mitchell Road,
ON 31-Oct-04 CBRE
South, Listowel
3571 Old Okanagan
ON 31-Oct-04 CBRE
Road, Westbank
139th Avenue and
42nd Street NE,
BC 31-Oct-04 CBRE
Calgary
920 Douglas Street,
AB 26-Mar-01 Colliers
St-Jean Sur-Richelieu
950 Justras E.
PQ 31-Oct-04 CBRE
Boulevard, Québec PQ 31-Oct-04 CBRE
99 St.-Jean-Baptiste
Boulevard,
Chateauguay PQ 31-Oct-04 CBRE
1950 Leonard-de-
Vinci Street, Ste-Julie
324 Curee-Labelle
Boulevard, Ste
PQ 31-Oct-04 CBRE
Therese
484-25th Avenue,
PQ 31-Oct-04 CBRE
Saint-Eustache
2054 Cure-Labelle
Boulevard, Saint-
PQ 31-Oct-04 CBRE
Jerome
121 Visitation Street,
St-Charles-de-
PQ 31-Oct-04 CBRE
Borromee Joliette
670 Principale Street,
Saint-Agathe-des-
PQ 31-Oct-04 CBRE
Monts
1837 Gascon Road,
PQ 31-Oct-04 CBRE
Lachenaie
3711/3715 61st
PQ 31-Oct-04 CBRE
Avenue SE, Calgary AB 26-May-04 Colliers

Homburg
ownership 1)
100%
Property Province /
Country
451 Windmill Road,
Dartmouth NS
- 54 -
External
appraisal date
Appraiser
100%
4411-6 th St SE
Calgary AB 7Apr-06 Colliers
100%
846 Park Street,
Kentville NS 8-Feb-05 ARA
100%
155, 25th Avenue,
Saint Eustache PQ
100%
20 Rue de Toulouse
Granby PQ 18-Jun-03 Colliers
100%
8 Boul Bromont
Bromont PQ 18-Jun-03 Colliers
100% 50 Boul Lionel
PQ
Groulx Sherbrooke
18-Jun-03 Colliers
100% 641 King St E
ON
Gananoque
1-Jun-03 Colliers
100% 39 Warne Crescent ON
Kingston
1-Jun-03 Colliers
100% 268 N Front St
ON
Belleville
1-Jun-03 Colliers
100% 1 Commerce Rd ON
Lindsay
1-Jun-03 Colliers
100% 429/431 Kent St W
Lindsay
ON
100% Old Hwy 2 Trenton ON 1-Jun-03 Colliers
100% 1010-24 th St High
River
AB
100% 170 LaBelle Blvd PQ
Rosemere
26-Jan-06 CBRE
100% 101 Blvd Arthur PQ
Sauve St-Eustache
26-Jan-06 CBRE
100% 255 Cremazie Blvd PQ
Montreal
26-Jan-06 CBRE
100% 2986 St Charles Blvd PQ
Kirkland
26-Jan-06 CBRE
100% 10131 117 th Ave AB
Grand Prairie
18-Dec-06 Colliers
100% 5300 47 th Ave
AB
Taber
18-Dec-06 Colliers
100% 1075 Wilfred Hamel
Quebec City
PQ
100% 1095 Wilfred Hamel
Quebec City
PQ
100%
200 Lougheed Dr,
Fort McMurray AB
100%
1801 1st Avenue,
Prince George BC 12-Apr-01 NCA
100%
535 Yates Street,
Victoria BC
Germany
100% Furtherstraße 205- GER 1-Dec-05

- 55 -
Homburg
ownership 1)
Property Province / External Appraiser
Country appraisal date
215, Nurnberg Colliers
100% Phillppestraße 3,
Bochum GER 5-Mar-05 Weatherall
100% Elbestraße 1-3, Marl GER 5-Mar-05 Weatherall
100%
Binnerhelde 26,
Schwerte GER 5-Mar-05 Weatherall
100%
Industriestraße 19,
Hassmersheim GER 5-Mar-05 Weatherall
100% Feldstrasse
GER
Wittenburg
12-Jan-05 CBRE
100% AM Campeon
Complex 1-12
GER
Munich
3-Mar-06 KS
The
Netherlands
100%
100%
100%
100%
Meidoornkade 22-24,
Houten NL 30-Mar-05 Weatherall
Industriestraat 6, 8,
10, Numansdorp
Fortranweg 10,
NL 30-Mar-05 Weatherall
Amersfoort
Industrielaan 24,
NL 1-Nov-04 Weatherall
Uden NL 5-Mar-05 Weatherall
100%
Daalakkersweg 2, 2-A
and 8, Eindhoven NL 14-Dec-04 Weatherall
100% ‘t Harde NL 28-Oct-2005 Troostwijk
100%
Hardwarewg 11,
Amersfoort NL 31-Dec-2005 CBRE
100%
Wolfraamweg 2,
Wolvega NL 5-Mar-05 Weatherall
100% Stationsplein 7 & 9 NL
Groningen
13-Jun-06 CBRE
100% Mathildelaan 1
NL
Eindhoven
20-Mar-06 BRE RT
100% Benthemstraat 10 NL
Rotterdam
20-Mar-06 BRE RT
100% Energieweg 9
NL
Rotterdam
14-Mar-06 BRE RT
100% Tarasconweg 2 NL
Eindhoven
10-Aug-06 DTZ
100% Valkstraat 14
NL
Sittard
10-Aug-06 DTZ
100% Corkstraat 38-46 NL
Rotterdam
10-Aug-06 DTZ
100% Beelarts van
Blokandstraat 10-14
NL
Tilburg
10-Aug-06 DTZ
100% Gentseweg 5-19 NL
Gouda
11-Dec-06 Colliers
100% Hoevenweg 11-11a NL
Eindhoven
11-Dec-06 Colliers

Homburg
ownership 1)
Property Province /
Country
100% Wilhelminaplein 26
Roermond
100% Wilhelminasingel 5
Roermond
100% Noorderpoort 33
Venlo
United States
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Appraisers
NL
NL
NL
- 56 -
External
appraisal date
Appraiser
11-Dec-06 Colliers
11-Dec-06 Colliers
11-Dec-06 Colliers
555 East Pikes Peak
Rd. Colorado Springs
557 East Pikes Peak
CO 13-Jan-03 TC & AI
Rd. Colorado Spring
559 East Pikes Peak
CO 13-Jan-03 TC & AI
Rd. Colorado Springs
4575 Hilton Parkway,
CO 13-Jan-03 TC & AI
Colorado Springs
3535 Van Teylingen
CO 22-Jan-03 TC & AI
Dr., Colorado Springs CO 10-Feb-03 TC & AI
669 Airport Freeway,
Hurst TX 3-Dec-02
15510 Lexington
Blvd, Houston TX 9-Jan-03
Yates
Realty
Murphy
Appr Grp
8400 Blanco Rd., San
McNeel,
Antonio TX 31-Jan-03 W &A Inc.
3740 Colony Dr., San
McNeel,
Antonio TX 31-Jan-03 W &A Inc.
10800 and 10829
Hillpoint Dr., San
McNeel,
Antonio TX 31-Jan-03 W &A Inc.
4718 and 4738 Cotton
McNeel,
Belt Dr., San Antonio TX 31-Jan-03 W &A Inc.
ARA Altus Real Estate Appraisals NCA North Country Appraisals
Altus Altus Group ORAI Outlook Realty Advisors
APAI Anderson Preece & Associates Piccott Piccott Real Estate Appraisals
BRE RT E De Brauwer
CBRE CB Richard Ellis Royal LePage Royal LePage
Colliers Colliers International TC & AI Thomas Colon & Associates
DTZ DTZ Zadelhoff
EA & CS Robin Elford Appraisal Services Troostwijk Troostwijk
KAL Kempton Appraisals Limited Weatherall Weatherall Vastgoed Adviseurs
KS King Sturges
McNeel, W&A Inc McNeel Weissler Associates Yates Realty Yates Realty Advisors
Murphy Appr Grp Murphy Appraisal Group
The total fair market value of the Company´s properties as determined in accordance with
IFRS as per December 31, 2006 on the basis of information received from the property appraisers and

- 57 -
accepted by the Company´s auditors is $ 1,957,808,000.
The Company has acquired the following real estate properties pursuant to the Alexis Nihon
Acquisition. None of these properties have been transferred to Cominar as part of the Cominar Sale.
See Chapter 15 “The Alexis Nihon Acquisition”.
Note:
(1) Includes 134,377 square feet owned by The Bay. The building operated by The Bay was constructed by The Bay.
Pursuant to its lease, The Bay pays annual basic rent for the lease of the land on which the building is situated and
Alexis Nihon will become the owner of the building at the end of such lease at no additional cost.
The properties that are remaining in Alexis Nihon have been valued by independent experts.
In its report dated November 27, 2006, Altus Helyar valued Place Alexis Nihon as of October 31,
2006 at $ 212.8 million. In its report dated as of January 1, 2007, Colliers International valued the
properties other than Place Alexis Nihon that are remaining in Alexis Nihon after the Cominar Sale as
per January 1, 2007 at $ 245 million. Copies of both reports can be obtained without charge from the
listing agent (SNS Securities N.V., Nieuwezijds Voorburgwal 162, 1012 SJ Amsterdam, the
Netherlands) and are also available electronically at www.homburg.com.
Homburg believes that no material changes to the properties have occurred since the dates of
the valuations by the independent experts. For the purpose of preparing its bid for Alexis Nihon, as
well as to provide the comfort required by the Underwriters and the bank that provided the Bridge
Loans, the Company developed a model to value the Alexis Nihon properties as per December 31,
2006 (the "Valuation Model").
The total fair market value of Alexis Nihon´s properties as determined in the Valuation Model
is approximately $ 1,050 million. The value of the properties that are remaining in Alexis Nihon after
the Cominar Sale is calculated in the model at approximately $ 490 million. The other component of
the $ 1,050 million is the calculated value of approximately $ 560 million of the Alexis Nihon
Industrial and Office Properties (other than the Alexis Nihon Co-Owned Properties), which have been
sold to Cominar in the Cominar Sale. The purchase price agreed with Cominar for these properties is
$575 million. See paragraph 15.2 "Cominar Sale". Pursuant to the Cominar Asset Sale Agreement,
Cominar has also unconditionally offered to purchase Alexis Nihon’s interest in the Alexis Nihon Co-

- 58 -
Owned Properties for a purchase price of approximately $17.3 million, subject to the exercise or
waiver by the co-owner of such properties of its rights of first refusal.
11.3 Development Projects
The Company currently owns 17 development projects located in Alberta, Québec and Prince
Edward Island. The following table outlines details relating to these projects.
Note:
(1) The Company has a 1/3 interest in these projects.
(2) These properties are in the pre-development stage.
As at March 31, 2007, approximately $292 million of the total estimated project costs of
approximately $3 billion had been spent on the development projects. The remaining project costs
will be financed through a combination of construction financing and equity. Construction financing
is in place at market interests for all of the above projects that are not in the pre-development stage
(see note 2 in the above table).
11.4 Description of the Company´s Most Significant Investment Properties
The Company’s most significant investment properties as measured by property revenue for
the year ended December 31, 2006 are as follows:
1. Campeon Complex, Munich, Germany (Leased to Infineon Technologies AG)
This property houses the corporate headquarters, corporate administration and research and
development centre of Infineon Technologies AG, a New York and Frankfurt stock exchange listed
company. Infineon Technologies offers semiconductor and system solutions addressing three central
challenges to modern society: energy efficiency, mobility and security. The Campeon Complex has
enabled Infineon to centralize most of its Munich employees in one physical working environment.
The complex consists of six building modules split into 12 separate brand new modern
buildings with underground parking for approximately 2,000 cars, recreational facilities and a

- 59 -
connection to the public highway. The complex include office space, a food and service court,
restaurants, outside sports field, bank, kindergarden and casino. The total leaseable area is 1,479,813
square feet. The lease expires in October 2020.
2. Fürtherstrasse 205-215, Wandererstrasse 159, Nürnberg, Germany (Leased to Quelle
AG Trading)
This 2,606,706 square foot mixed-use complex serves as Quelle AG’s centre for logistics and
distribution. It includes storage space, office space, shopping space and an administrative and
computer centre. Quelle AG is part of the Karstadt Quelle AG group that had a turnover of more than
€ 15 billion in 2005. Quelle is a large provider of technical goods in the German mail order market.
The complex is located on a main traffic artery 2.5 kilometres from the city centre and central station
with direct access to key municipal roads as well as the main expressway. It is easy to reach by car,
tram and subway. Nürnberg Airport is approximately 15 kilometres away. The 27-acre site provides
for 601 above-ground parking spaces and 140 underground parking spaces. The lease expires in
December 2015.
3. Mathildelaan 1, Eindhoven, the Netherlands (Leased to Philips Lighting B.V.)
This property is the world -wide headquarters for Philips Lighting B.V., a leader in the global lighting
market that employs approximately 523,162 peopleIt consists of one-seven -floor and one two-floor
self-contained office complexes. The buildings provide approximately 426,900 square feet of
leaseable area and approximately 600 above-ground parking spaces.
The property forms an integral part of the city center and is within walking distance of the
central station. It is surrounded by retail and residential buildings. The lease expires in December
2014.
4. Stationsplein 7-9, Groningen, the Netherlands (Leased to KPN Telecom B.V.)
The total leaseable space of this single-tenant property is approximately 343,582 square feet.
The tenant of this property is KPN Telecom B.V., which provides telephone, Internet and television
services to personal customers through its fixed network in the Netherlands. KPN’s shares are listed
for trading on Eurolist and New York stock exchanges.
This complex contains three contiguous office buildings, with above-ground and belowground
parking for 150 cars. The lease expires in February 2014.
5. Philippstrasse 3, Bochum, Germany (Leased to Deutsche Annington
Vermoqengesellshaft MbH & Co.KG)
This property is located in Bochum-Altenbochum, close to several important highway connections
and is easily accessed by both car and public transportation. The site covers approximately five acres.
The building provides total leaseable space of approximately 285,461 square feet and has 320 aboveground
parking spaces and 180 parking spaces around the building.
The property is leased to Viterra AG, which is part of Deutsche Annington, Germany’s
biggest housing company, encompassing leasing, sale and management of residential properties, with
approximately 230,000 units. The lease expires in June 2020.
6. Zellers Portfolio
Zellers is part of the Hudson’s Bay Company, one of Canada’s oldest department store
retailers, with more than 500 stores across the country. The Company’s Zellers portfolio includes the
following seven locations in Newfoundland, Nova Scotia, Québec, Ontario and British Columbia. The
lease for each of these properties expires in April 2023 assuming that Homburg or Zellers exercises its

- 60 -
renewal option in respect of the leases for the Zellers portfolio to extend its maturity to 2023 prior to
the expiration of the current term in 2018.
.
Zellers´Location Province Land Area Gross Leasable Area
(Square Feet)
24 Stavenger Dr, St John’s NF 9.88 107,400 1994
194 Chainlake Dr., Bayers
Lake Business Park,
Halifax
NS 8.65 112,423 1995
100 Rue St. Jude, Granby PQ 11.12 114,256 1998
60 Martindale Cres.,
Meadowlands Centre,
Ancaster
129 Queensway East,
Simcoe
600 Mitchell Rd South,
Listowel
Westbank Shopping Centre,
Westbank
ON 8.65 108,628 1999
ON 8.65 74,250 1999
ON 7.41 80,005 1995
BC 7.41 105,670 1995
Year Built
7. Industrielaan 24, Uden, the Netherlands (Leased to MediaMotion Manufacturing B.V.)
Constructed in 1977, the complex consists of four mixed use production, storage, assembly and office
buildings providing a total leaseable area of 437,825 square feet. MediaMotion Manufacturing B.V.,
one of the major players in Europe in providing services for the production of CDs and DVDs, is held
by the strategic investment company ECF Group. The lease expires in September 2019.
8. Carat Park, Wittenburg, Germany (Leased to Edeka-Miha Immobilien GmbH)
This property is a “Fachmarktzentrum” (specialized market centre), with 17 retail units of
different sizes with a total leaseable area of 198,592 square feet. There are approximately 562 on site
above-ground parking spaces. The lease expires in September 2012.
The Edeka group is the number one German retail food trader and employs approximately
250,000 people. Edeka holds the main lease in this complex and subleases to various other tenants.
9. Daalakkersweg 2, 2a, 8, Eindhoven, the Netherlands (Leased to VDL Industrial Modules
B.V. and WorkSphere B.V.)
The property is conveniently located in the east of Eindhoven in the industrial area known as
Herzenbroek. Close to two important main highways, it is easily accessible by both car and public
transportation.
The buildings provide a total leaseable area of 364,921 square feet and provides parking for
500 cars. The properties form a well maintained complex consisting of office and storage areas. The
lease expires in June 2009.
VDL Group is an international industrial company devoted to the development, production
and sale of semi-finished and finished products. The VDL Group had consolidated turnover of €809
million in 2004. WorkSphere B.V. is a subsidiary of Strukton Groep N.V., which is active in the areas

- 61 -
of rail infrastructure & information systems, civil engineering, construction & real estate, and PPS
concessions & facility management.
10. Industristrasse 19, Hassmersheim, Germany (Leased to MoTip Dupli Group B.V.)
MoTip Dupli Group B.V. is a European spray can producer with approximately 750
employees in 11 countries.
The property is centrally located in the industrial area of Hassmersheim and is well connected
to the German motorway system. The area is also accessible by the river Neckar, which has a loading
and unloading point for shipping by water. The buildings´ gross leasable area is 304,567 square feet
consisting of warehouse and office space. The lease expires in December 2014.
11.5 Description of Alexis Nihon´s Most Significant Investment Properties
The following describes certain attributes of the most significant investment properties of
Alexis Nihon as measured by property revenue for the year ended December 31, 2006 that have been
acquired by Homburg pursuant to the Alexis Nihon Acquisition. None of these properties are being
transferred to Cominar as part of the Cominar Sale.
1. Place Alexis Nihon
Place Alexis Nihon, located in Montréal, Québec, was acquired by the Nihon family in 1983.
The property is a 1,463,911 square foot multi-use office, retail and multi-family residential complex
built between 1967 and 1988, comprising 611,535 square feet of class A office space and 391,029
square feet of retail space, as well as 161,026 square feet of storage and 300,321 square feet of multifamily
residential space. The complex has sheltered parking for 1,235 cars, being one space per 1,200
square feet of leasable area including one space per multi-family residential unit. The complex
consists of a seven level commercial podium, three levels of shopping concourse, three levels of
parking, one level of storage, two office towers of 10 and 18 stories, respectively, and a 27-storey
multi-family residential tower. The property has multiple tenants. The average remaining lease term is
5.5 years.
Sitting atop the Atwater subway station, with access to public transit and to Montréal’s
underground network,, Place Alexis Nihon is located in the west sector of the Montreal business
district, with exposure on Atwater Avenue, Sainte-Catherine Street and de Maisonneuve Boulevard.
Place Alexis Nihon bears civic addresses 1500 Atwater Avenue, 3400-4000 de Maisonneuve
Boulevard West and 4045-4049 Sainte-Catherine Street West.
2. Centre Laval – 1500-1690 Le Corbusier Boulevard, Laval, Québec
Centre Laval is a 701,932 square foot regional shopping centre located at the intersection of
Le Corbusier Boulevard South and Saint-Martin Boulevard in Laval, and bordered by the Laurentian
Autoroute (15), providing primary accessibility and visibility. It is also located within walking
distance of the Montmorency Metro station. The building was built in four phases between 1968 and
1991 and renovated between 1998 and 2001. Over $27 million has been spent on expansions and
renovations since 1999. Situated on 2,073,185 square feet (47.6 acres) of land, it has over 3,200
outdoor parking spaces. The building, which includes 9,792 square feet of ancillary office space, is
occupied by 140 tenants. Benefiting from a diversified tenant mix, Centre Laval´s significant tenants
include a Canadian chartered bank, Staples Business Depot, L’Équipeur, Librairie Champigny,
Société des Alcools du Québec, Sports Experts, Wal-Mart, Brick, Future Shop, Best Buy, Ultramar
and The Bay. The leasable area includes 134,377 square feet owned by The Bay situated on land
which is leased from Alexis Nihon. The building in which The Bay operates was constructed by The
Bay. Pursuant to its lease, The Bay pays annual basic rent for the lease of the land on which the
building is situated and Alexis Nihon will become the owner of the building at the end of such lease at
no additional cost. Approximately 576,349 square feet or approximately 28% of the site area are held
under an emphyteutic lease expiring in 2065. The average remaining lease term is 5.6 years.

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3. 1035, 1049, 1059, 1065, 1069, 1075, 1085, 1095, 1105, 1125 and 1135 Jean-Baptiste
Rolland Boulevard West, Saint-Jérôme, Québec
the buildings are part of a 195,953 square foot retail complex on 763,000 square feet of land,
strategically located along Highway 15, built in four phases between 1999 and 2004. The centre is
substantially leased to 15 tenants and has over 1,000 outdoor parking spaces. Significant tenants
include Staples Business Depot, B.O.L.D. and Winners. The average remaining lease term is 7.2
years.
4. 3310-3550 Côte-Vertu Boulevard, Saint-Laurent (Montréal), Québec
This 189,185 square foot retail complex was built in 1999 and is located on 1,117,384 square
feet of land. The building is 99.4% leased to 21 tenancies including Cinema Guzzo, Bar & Billiard
Unison Inc. and Club Feel Good Fitness Café. The average remaining lease term is 7.4 years.
12. MARKET DESCRIPTION
Overview
Homburg Invest Inc. has real state holdings in four countries – Canada, the United States,
Germany and the Netherlands.
The company has a diversified portfolio consisting of office, retail, industrial and land assets in the
various markets.
General introduction into the provinces of Canada
This general introduction provides information only on those provinces in which Homburg
currently hold real estate. The source for this section is Colliers International (Location & Market
Overviews, 24 March 2007).
Province of British Columbia
Occupying almost a million square kilometres, British Columbia (“BC”) is larger than
California, Oregon and Washington states combined, or the combined area of France and Germany.
British Columbia has a highly diverse natural environment, population, and economic base.
The province’s skilled workforce, rich natural resources, unrivaled quality of life and gateway
location between North America and Asia provide the foundation for almost unlimited economic
opportunities. The 2006 population was 4,113,487 persons, the largest city being Vancouver with
about 2.1 million.
Homburg Invest Inc. has minimal activity in BC.– It is active in ownership of only three
properties in B.C.: (1) an office property in Victoria, (2) a retail sale-and-leaseback with Zellers in
West Bank and (3) a minor commercial property in the northern, small market of Prince George.
Province of Alberta
Alberta is one of the world's leading producers of oil and gas as a result of an abundance of
energy reserves that fuel a thriving oil and gas industry.
Alberta's population is 3,290,350 (according to the 2006 Census, a detailed enumeration of
the Canadian population) and is the fourth largest province in Canada. Albertans have the lowest
overall taxes in Canada with among the highest level of services. They have the highest disposable

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incomes in Canada and the lowest unemployment rate. Over the past decade, Alberta had the highest
rate of economic growth rate in Canada at 3.8%.
Homburg Invest Inc. is active in ownership and development of new commercial properties in
Calgary, Edmonton, Grand Prairie, Okotoks, Red Deer and Taber Alberta.
Calgary population has grown over 10% since 2001 and is now nearing 1.1 million people.
Calgary continues to exhibit some of the strongest economic fundamentals of any major market in
North America. Edmonton is the provincial capital. Edmonton's Census Metropolitan Area (CMA)
is the sixth largest in the country with a population of 1,034,945. Edmonton has also benefited from
high energy prices and is experiencing the strongest commercial real estate market in its history.
Homburg has significant holdings in Calgary and Edmonton, with several planned new developments.
Province of Ontario
Ontario is Canada’s second largest province – measuring more than one million square
kilometers (415,000 square miles) – an area larger than Spain and France combined.
With a population of 12,160,282 million, Ontario is home to greater than one in three Canadians.
Eighty percent of Ontario’s populations live in the southern centres like Ottawa, Kingston, Toronto,
Niagara Falls, London, Kitchener, and Hamilton.
Homburg has little exposure to Ontario – excepting three sale-leaseback retail Zellers stores,
all located in small markets in the Province.
Province of Quebec
Located in the northeast of the North American continent, Canada's largest province covers an
area of 1,667,926 km 2 . It is twice the size of Texas and seven times the size of the United Kingdom.
The population is 7,546,131. Montreal is the largest city in Quebec and the second largest in Canada,
with a metropolitan population of 3,635,571.
In the 1970's, debates over the supremacy of the French language crystallized around the
province. In 1976, the Parti Québécois was voted into power. In 1980, in a popular referendum,
Québec voters rejected the proposition of sovereignty-association with the federal government of
Canada. In October 1995 a second referendum on Québec independence was also defeated by a
narrow margin.
Homburg has other minor holdings in Quebec – limited to a portfolio of net lease Pizza Hut
(Quick Service Restaurant) retail properties. These properties are all located in suburbs of Montreal
and smaller markets within a 300 km radius of the City.
Province of New Brunswick
New Brunswick, the largest of Canada's three Maritime Provinces, is situated south of
Quebec's Gaspé Peninsula and immediately east of the State of Maine. The 2006 population is
729,997, only a 0.1% increase from 2001.
Homburg Invest Inc. has significant real estate holdings in this market.
Province of Nova Scotia
Nova Scotia is located on the east coast, almost completely surrounded by the Atlantic Ocean.
The nearest American state is Maine. Nova Scotia is about 53,000 square kilometres which makes it

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about twice the size of the American state of Massachusetts and just a bit smaller than Ireland. The
2006 population is 913,462, only a 0.6% increase from 2001.
The capital city is Halifax, an international seaport and transportation centre, with a
population of 372,858 in the greater area. Homburg Invest Inc. has significant real estate holdings in
the Halifax market.
Province of Prince Edward Island
Prince Edward Island (“PEI”) is located on the east coast, connected to New Brunswick by
the Confederation Bridge. It is Canada’s smallest Province with the 2006 population at 135,851.
Charlottetown, the provincial capital, is the business and research hub of PEI.
The Island economy is heavily dependant upon tourism and agriculture and related services.
Homburg has minor exposure to PEI, owning a multi-tenant retail property in the downtown of the
capital city – Charlottetown and a small Inn.
Province of Newfoundland and Labrador
Newfoundland is Canada's most easterly province consisting of two distinct geographical
entities, the island of Newfoundland and Labrador, which is largely northern land. The 2006
population is 505,469, a -1.5% decline from 2001.
Off the shores of St. John’s, the vast oil fields of Hibernia and Terra Nova produce one-third
of Canada’s conventional light crude. The offshore oil industry has been a catalyst for economic
growth, St. John’s being the main beneficiary. The outlook for the area is for continued growth over
the next several years as the oil industry’s share of the economy is expected to grow as activity and
production expands.
Homburg Invest Inc. has little exposure to Newfoundland – excepting two sale-leaseback
retail stores, one located in a modern retail Power Center in the capital city of St. John’s; the other in a
small market location (Gander) in the Province.
The Canadian office market
Annual employment growth in 2006 was concentrated in the country’s most densely
populated urban regions. Calgary, with its booming resource sector, led the charge with expansion of
more than six percent compared with the average national rate of two percent. Canada’s economic
performance is tied largely to the strength of six cities: Vancouver, Calgary, Edmonton, Toronto,
Ottawa and Montreal. According to Statistics Canada, 73 percent of Canada’s head office
employment is located in Toronto, Montreal, Calgary and Vancouver.
Economic stability has drawn investors to Canadian real estate over the last several years.
Gross Domestic Product will exceed 3% for 2006. By February of 2007 Canada’s unemployment rate
was barely above 6%. Economic strength has attracted both foreign and domestic investors to
Canadian real estate investment.
Canada’s largest downtown office markets are reported by Colliers International to be in their
healthiest condition in almost two decades. National average rents for downtown Class A office
space in Canada have climbed to their highest level since 2003. The nation’s economic strength,
including job growth; retail sales and robust business expansion have been the key drivers of the
downtown markets.

Calgary office market
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Calgary continues to exhibit some of the strongest economic fundamentals of any major
market in North America. Buoyant commodity process is directly fueling Calgary’s office market,
translating into plummeting vacancy rates and rising rental rates. An abundance of investors are eager
to participate in the city’s booming growth. Each new transaction is setting pricing benchmarks on
both capitalization rate and price per square foot basis.
Vacancy rates have fallen to the low single digits, resulting in rapid rental rate growth.
Rapidly rising rental rates have allowed investors to accept record low going-in yields with the
expectation of near-term yield appreciation.
Victoria office market
In the first half of 2006, Victoria’s real estate investment market continued at a record pace.
Having dropped an average of 100 basis points over the past year, capitalization rates in all classes are
at historic lows. After sustained compression over the past 5 years, Colliers International predict that
cap rates will stay at or slightly below current levels for the next 18 months.
Halifax office market
Halifax is the financial, business and research hub of Canada’s Atlantic Provinces. Halifax’s
office market saw its first quarter of negative absorption following 8 consecutive quarters of declining
vacancy. Vacancy is now at its’ lowest rate since 1999. However, Colliers International report that
the downtown vacancy rate declined, with the increase coming from suburban locations. Net rental
rates are trending upwards. Capitalization rates continue to compress.
The Canadian retail market
Canada’s economy will expand by a solid three percent in 2006 despite having to overcome:
rising energy costs, a soaring dollar and increased financing costs. Annual employment growth in
2006 was concentrated in the country’s most densely populated urban regions. Retail sales expanded
by almost 10% year-over-year in May. New housing starts were strong, down by less than 1% from a
record 2005.
Foreign investors have provided a boost to Canadian retail landscape as U.S. based chains
continue new store openings. Statistics Canada report that foreign-based retailers increased capital
spending over the past year by 36% compared to an increase of just 4% by Canadian owned retailers.
Capitalization rates will see little change over the next 6 to 12 months is the official line – and
Colliers Inetrnational believes that may have some validity in primary markets. Investors will
continue to look at secondary markets in the near-term. We anticipate that secondary markets will
play a more pronounced role in Canada’s investment market.
The strong Canadian retail sector has translated into a strong retail real estate market. With
the record high demand for existing properties – and the resultant sharp decline in cap rates, many
developers have turned to new development.
The Canadian industrial market
Both foreign and domestic investors have competed regularly for assets, both single and in
portfolios. Continuing near record-low interest rates have also been a key driver of demand. Pension
Fund has been outbid by foreign investors and REITS. The big news in 2006 was the acquisition of

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Canada’s largest industrial landlord, Summit REIT by ING Real Estate Canada (Dutch-Australian
joint venture) for $3.37 billion.
The continuation of available capital will result in a consistent market in 2007 – with record
low cap rates (initial yields)although it is widely expected that a bottom for rates has been reached or
is near and that future value gains will result from earning growth – not yield compression.
Warehouse/ logistics companies accounted for a reported 70% of the investment transactional
activity in Canada in 2006 with the largest growth in Western Canada.
The Dutch office market
The Netherlands office market remains poorly rated as a result of over-supply concerns.
Despite this prognosis, The Netherlands outperformed other western European markets.
PricewaterhouseCoopers, for instance, expect a natural balance back in the market in three to five
years, and expect a shortage of high-quality office space within two years. Amsterdam, Rotterdam
and The Hague are reported by most firms to have poor market prospects, with somewhat better office
markets reported in Zwolle, Breda and Maastricht.
Over the past year investors put considerably more into Dutch real estate than in 2005. In total
around € 8.25 billion in commercial property (offices, industrial space and retail) was acquired, a 25%
increase against 2005, which was itself a record year. The demand was primarily a result of British
and German buyer interest. Just as in 2005 investors were primarily interested in offices. Of the total
investments in property some 70% was in offices.
The Dutch industry market
The 2006 Year was an excellent one for the Dutch Industrial property market – seeing € 1.2
billion in transactions – an all time record. The greatest demand was for Distribution centres –
Schiphol and Rotterdam being the highest values.
Warehousing and Distribution Investment has seen a flood of capital in the market and this is
resulting in yield rate compression. While there continues to be a massive restructuring play in
central Europe, where the infrastructure is being improved, most investors prefer the more mature
markets such as the Netherlands (particularly Rotterdam), northern France and western Germany.
Initial Yield rates for prime logistics properties (western Holland) saw yields below 7%.
Interest rates were at 3.9% at Years end.
The German office market
According to DTZ - aggregate office space turnover in the five most important German office
markets (Berlin, Dusseldorf, Frankfurt, Hamburg, Munich) in 2006 rose 11% - the third successive
improvement in take-up since the market bottomed in 2003. The City with the biggest take-up was
Munich.
The Munich region is rated as the best in terms of a demand –driven market recovery.
Secondary cities are also attractive, despite vacancy risks increasing, as they produce higher
investment returns. The market preference is for modern stock in city fringe areas or office parks.
The Industrial Investment market has seen continued yield compression in Germany (according to
AXA Real Estate IM, 125 bps since 2004). Investors have reportedly become more flexible with
regard to shorter leases.

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German investment markets have exhibited a number of trends that have led to structural
changes in the market. The dominating force in German property investment markets has been
foreign investors. These investors are betting that the German property markets have bottomed out
and again offer good potential for higher rents.
Foreign buyers accounted for over 75% of invested monies in German Commercial property
market in 2006. This high interest is supported by prospects for growth in rents; comparatively high
yields in Germany relative to other European markets; and the continued availability of inexpensive
debt.
Initial Yield compression continued from 2005 throughout 2006.
The German industrial market
Germany’s logistic locations will continue to benefit from EU enlargement. Market
preferences are areas outside the main investment centres along the Europe transport corridors and
properties near international airfreight hubs and ports.
Attractive markets are areas outside of the main investment centers along European transport
corridors from west to east (e.g. Ruhr area, Kassel, Nurnberg, Hanover) and properties near
international airfreight hubs and ports (Hamburg Rhine-Main-Area, Munich).
Initial Yield compression continued from 2005 throughout 2006. For investment grade
logistics properties, Initial Yields fell by around 0.30% pints.
Retail markets were also very active with a large number of transactions.
General introduction into the United States of America
At over 9.6 million km² and with over 300 million people, the United States is the third or
fourth largest country by total area and third largest by population. The economy is fueled by an
abundance in natural resources and a large, highly productive work force. The United States is the
second largest exporter and largest importer of goods, with Canada, China, Mexico, Japan, and
Germany as its top five trading partners. With a gross domestic product (GDP) of over $13 trillion,
the U.S. has the largest national economy in the world.
Homburg Invest Inc. has minor commercial real estate holdings in four cities in the State of
Texas and in Colorado Springs, Colorado.
State of Texas
Texas is the second largest state in the United States in both area and population. Texas is
internationally known for its energy and aeronautics industries. The state is home to numerous
Fortune 500 companies located in major metropolitan areas. Texas is the only state in the U.S. to have
three cities with populations exceeding one million: Houston, San Antonio, and Dallas.
Houston, the fourth most populous city in the United States, is well known as a center for
energy, medicine, international business and technology. The engine that drives Houston's thriving
international trade and commerce is the Port of Houston. Additionally, the world's largest
petrochemical complex neighbors the port. For years, Houston has been known as the Energy Capital
of the World, but the city boasts a diverse economy with expanding industries in the areas of
engineering and design services, health care services and electronics, including NASA Lyndon B.
Johnson Space Center. Sugar Land is located 30 kilometers south of downtown Houston.

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Dallas/Fort Worth (DFW) metropolitan area is a 9,469 square-mile, 12-county region that
includes Dallas, Fort Worth and 126 other municipalities. DFW is the largest metropolitan population
in Texas and the ninth largest in the U.S. with more than 5.6 million residents. Hurst is located in the
heart of the DFW metropolitan area.
San Antonio, the eighth largest city in the United States, has an MSA population of 1.606
million.
State of Colorado
The State of Colorado is in the Western United States. The United States Census Bureau
estimates that the state population was 4,753,377 in 2006, a 10.49% increase since 2000.
The 2005 the population of the City of Colorado Springs was 369,815 (49th most populous
U.S. city). Colorado Springs' economy is driven primarily by the military, the high-tech industry and
tourism.
The US office market
Reflecting a continuously vibrant economy, Q4-2006 was another rock-solid quarter for the
office market, with demand surpassing expectations for office space nationwide, according to a report
by Colliers International.
Fourth quarter office vacancies measured 12.5%, versus 12.7% during the third quarter of
2006 and 13.6% percent during the year-ago period. Vacancies are now significantly below the
cyclical high of 16.4 percent registered at the end of 2003.
In line with this vacancy reduction, rents again moved higher during Q4’06, with downtown
lease rates, in particular, rising sharply. Downtown rents were up an average of 18.2% for 2006, with
suburban rents up 7.5 percent.
13. MANAGEMENT OF HOMBURG
13.1 General
Homburg has a one-tier board structure consisting of the Board of Directors. There are no
family relationships between any of the members of the Board of Directors (the “Directors”) and
officers of the Company (the “Officers”) named below. Set out below is a selection of relevant
information concerning the Directors and Officers. The Directors and Officers together represent 222
years of real estate experience and represent a broad cross-section of various aspects of real estate
investment, development and ownership.
Powers, composition and function
Copies of the Articles are available for inspection at Homburg’s offices located at Suite 600,
1741 Brunswick Street, Halifax, Nova Scotia, B3J 3X8 (telephone: +1 902 468-3395) and are also
available electronically on SEDAR at www.sedar.com. Any shareholder may request a copy of the
Articles, which will be provided free of charge.
The Articles and by-laws of the Company (the “By-Laws”) provide that the Board of
Directors will consist of not less than three nor more than 15 Directors. The number of Directors to be
elected is determined by resolution of the shareholders of the Company (the “Shareholders”), and the
Directors are elected by the Shareholders on at least an annual basis, and serve until the close of the
Company’s next annual meeting of Shareholders unless they resign or are removed in accordance

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with the provisions of the ABCA and the By-Laws. The Board of Directors has the authority pursuant
to the Articles to appoint one or more additional Directors between annual meetings of Shareholders
so long as the number of additional Directors so appointed at no time exceeds one third of the number
of Directors who held office at the expiration of the last annual meeting of Shareholders and the total
number of Directors at no time exceeds the maximum number allowable under the Articles.
The chairman of any meeting of the Board of Directors will be the Director present and
willing to so act at the meeting who is the first mentioned of the following Officers as have been
appointed: Chairman of the Board of Directors, President or a Vice-president (in order of seniority). If
no such Officer is present and willing to act, the Directors present will choose one of them to be the
chairman of that meeting.
At all meetings of the Board of Directors, every proposal will be decided by a majority of the
votes cast. The quorum for the transaction of business at any meeting of the Board of Directors will
consist of a majority of Directors or such greater or lesser number of Directors as the Board of
Directors may from time to time determine. In case of an equality of votes the chairman of the
meeting will not be entitled to a second or casting vote. The powers of the Board of Directors may be
exercised by resolution passed at a meeting at which a quorum is present or by resolution in writing
signed by all the Directors who would be entitled to vote on that resolution at a meeting of the Board
of Directors. Resolutions in writing may be signed in counterparts.
Homburg has no statutory restrictions on its investment activities. However, the Company has
committed itself to invest solely in real estate and/or real estate companies. Any change in scope of
the investment activities must be approved by the Board of Directors.
The Board of Directors assumes responsibility for stewardship 1 of Homburg. The Board of
Directors fulfils a proportion of the stewardship obligations directly and delegates the remainder to
committees of the Board of Directors. Some of the matters which require prior approval of the Board
of Directors in accordance with the ABCA and resolutions adopted by the Board of Directors are:
• making any borrowing of money on the credit of the Company in excess of $20
million;
• providing guarantees on behalf of the Company to secure performance of an
obligation of any person;
• issuing shares from treasury;
• purchasing, redeeming, or otherwise acquiring shares issued by the Company;
• appointing additional Directors, or filling a vacancy in the Board of Directors;
• filling a vacancy in the office of the auditors;
• granting stock options to acquire shares;
• declaring dividends or other distributions;
• issuing, reissuing, selling or pledging debt obligations of the Company, including
bonds and mortgage bonds;
1 Stewardship is common language for duty of care and general corporate responsibility.

Board of Directors
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• mortgaging, hypothecating, pledging or otherwise creating a security interest on all or
any property of the Company, owned or subsequently acquired to secure an
obligation of the Company; and
• disposing of assets of the Company.
Board of Directors’ mandate
The Board of Directors has adopted a formal mandate setting out the Board of Directors’
stewardship responsibilities including the Board of Directors’ responsibilities with respect to
oversight of the operation of the Company’s business.
The fundamental elements of the role of the Board of Directors are decision making and
operations oversight. The decision making function is exercised with respect to the formulation, on
recommendations by the management of the Company (“Management”), of fundamental policies and
strategic goals. The oversight function concerns the review of Management decisions, the adequacy of
controls, the implementation of policy and public and regulatory disclosure.
The Board of Directors establishes formal levels of authority defining the limits of
Management’s authority and delegating to Homburg Canada certain powers to manage the business of
the Company. Any authority not specifically delegated to Management remains with the Board of
Directors. Authorities that remain with the Board of Directors include strategic planning, internal
controls, risk management, disclosure and communications and corporate governance.
In carrying out its mandate, the Board of Directors meets regularly and a broad range of
matters are discussed and reviewed for approval. These matters include overall plans and strategies,
budgets, internal controls and management information systems and risk management as well as
interim and annual financial and operating results. The Board of Directors is also responsible for the
approval of all major transactions, including equity issuances and as well is responsible for dividend,
debt and borrowing policies. The Board of Directors strives to ensure that actions taken by the
Company correspond closely with the objectives of all Shareholders. The Board of Directors will
meet at least once annually to review the Company’s strategic plan and the resources that are required
to carry out the Company’s growth strategy and achieve its objectives. The mandate will be reviewed
by the Board of Directors annually.
The procedures prescribed by the ABCA require a Director or an Officer of the Company
who (a) is a party to or (b) is a director or an officer of or has a material interest in any person who is
a party to a material contract or a material transaction or proposed material contract or material
proposed transaction with the Company, to disclose the nature and extent of the Director's or Officer's
interest and to refrain from voting on any matter in respect of such contract unless otherwise
permitted under the ABCA.
Homburg is managed by Homburg Canada and thus has no employees. Subject to the Board
of Directors' stewardship, Homburg Canada, through its senior management group, is responsible to
lead and manage the Company within the parameters established by the Board of Directors and its
relevant committees. Homburg Canada is expected to successfully implement capital and operating
plans, report regularly to the Board of Directors on the progress and results compared with the
operating and financial objectives, initiate courses of action for improvement, develop and maintain a
sound effective organisation structure, and ensure progressive employee training and development
programs. See also paragraph 13.7 “Related Party Transactions”.
Dependent and independent members of the Board of Directors

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The Board of Directors is comprised of three independent members, namely Mr. Trevor A.
Carmichael, Mr. Walter R. Fitzgerald and Mr. Edward P. Ovsenny. Mr. Richard Homburg directly
and indirectly controls the majority of the voting share of the Company and is thus not considered
independent. Further, Mr. Michael H. Arnold provides, through his private company, management
services to one of the Company’s properties and thus is not considered independent. See also
paragraph 13.7 “Related Party Transactions”.
Committees of the Board of Directors
Audit Committee
The audit committee of the Company (the “Audit Committee”) is a sub-committee of the
Board of Directors. The Audit Committee is composed of three Directors, two of whom are
independent and all of whom are financially literate (as defined by Canadian securities laws and
regulations):
Edward P. Ovsenny – Chairman
Michael H. Arnold, CA
Walter R. Fitzgerald
The Board of Directors acknowledges that Mr. Michael H. Arnold is not an independent
director within the meaning of NI 58-101.
The Audit Committee is ultimately responsible for the policies and practices relating to the
integrity of the Company's financial and regulatory reporting as well as internal controls to achieve
the objectives of safeguarding of the Company’s assets, reliability of information, and compliance
with policies and laws. The Audit Committee is also responsible for identifying principal risks of the
business and ensuring appropriate risk management techniques are in place.
The Audit Committee charges the Board of Directors and the Officers with developing and
implementing procedures to:
• ensure internal controls are appropriately designed, implemented and monitored; and
• ensure reporting and disclosure of required information is complete, accurate and
timely.
The Audit Committee reviews the Company's interim unaudited consolidated financial
statements and annual audited consolidated financial statements and certain corporate disclosure
documents, including the annual information form, Management's discussion and analysis of
operations and financial condition and annual and interim earnings press releases before they are
approved by the Board of Directors and makes recommendations to the Board of Directors in respect
of the appointment and compensation of external auditors. Furthermore it monitors accounting,
financial reporting, control and audit functions and regulatory reporting following the execution of the
Audit Committee’s responsibilities as described in the mandate. The Audit Committee meets with and
has direct independent access to the Company's auditors, Grant Thornton LLP. In addition, the Board
of Directors has specifically authorized individual Directors to engage outside advisors at the
Company’s expense subject to the approval of the Audit Committee.
The Audit Committee also meets to discuss and review the audit plans of external auditors
and is directly responsible for overseeing the work of external auditors with respect to preparing or
issuing the auditor's report or the performance of other audit, review or attest services, including the
resolution of any disagreement between the Company’s executive Officers and external auditors
regarding financial reporting. The Audit Committee questions external auditors independently of the
executive Officers and reviews a written statement of its independence based on the criteria found in
the recommendations of the Canadian Institute of Chartered Accountants.

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Powers of the Audit Committee may be exercised at a meeting at which a quorum is present
or by resolution in writing signed by all the members of the committee who would have been entitled
to vote on that resolution at a meeting of the Audit Committee. At all meetings of the Audit
Committee, every question will be decided by a majority of the votes cast on the question. In case of
an equality of votes, the chairman of the meeting will be entitled to a second or casting vote.
Resolutions of any committee in writing may be signed in counterparts.
Unless otherwise determined by the Board of Directors, a quorum for meetings of the Audit
Committee will be a majority of its members. The Audit Committee has the power to appoint its
chairman. The rules for calling, holding, conducting and adjourning meetings of the Audit Committee
are the same as those governing the Board of Directors. Each member of the Audit Committee will
serve for so long as the Board of Directors pleases and, in any event, only so long as he is a Director.
The Directors may fill vacancies in the Audit Committee by appointment from among their members.
Provided that a quorum is maintained, the Audit Committee may continue to exercise its powers
notwithstanding any vacancy among its members.
The Audit Committee has recommended to the Board of Directors and the Board of Directors
has approved a charter for the Audit Committee. The charter can be found in its entirety in the
Company’s Annual Information Form dated February 10, available electronically on SEDAR at
www.sedar.com and on the Company’s website on www.homburginvest.com.
Executive Committee
The executive committee of the Company (the “Executive Committee”), as a sub-committee
of the Board of Directors, is authorized to oversee the activities of the Company between meetings of
the Board of Directors. The Board of Directors has appointed an Executive Committee comprised of
three members: Mr. Richard Homburg, Mr. Rudolf D. Bakhuizen and Dr. Trevor A. Carmichael.
Given the size of the Board of Directors and the ease with which a quorum can be obtained, it has not
been considered necessary to hold Executive Committee meetings. As a result, there has been no
formal delineation of authority for the Executive Committee and a charter has not been developed.
The Board of Directors could delegate to the Executive Committee any of its responsibilities
other than those required by the ABCA to be retained by the Board of Directors. The duties which
must be retained by the Board include: (a) submitting to the Shareholders any question or matter
requiring the approval of the Shareholders, (b) filling a vacancy among the Directors or in the office
of auditors, (c) appointing additional Directors between annual meetings of Shareholders, (d) issuing
securities except in the manner and on the terms authorized by the Directors, (e) declaring dividends,
(f) purchasing, redeeming or otherwise acquiring shares issued by the Company, except in the manner
and on the terms authorized by the Directors, (g) paying certain commissions, (h) approving a
Management proxy circular (i) approving the audited annual consolidated financial statements of the
Company, and (j) adopting, amending or repealing the By-Laws.
Other Information Relating to Directors and Officers
In relation to each of the Directors and Officers, the Company is not aware of (i) any
convictions or other legal sanctions in relation to fraudulent offences in the last five years, (ii) any
bankruptcies, receiverships or liquidations of any entities in which members of the Board of Directors
or Officers held any office, directorships or senior management positions in the last five years, or (iii)
any official public incrimination and/or sanctions of such person by statutory or regulatory authorities
(including designated professional bodies), or disqualification by a court from acting as a member of
the administrative, management or supervisory bodies of a company or from acting in the
management or conduct of the affairs of any company for at least the previous five years.
The Company is not aware of any potential conflicts of interest between the private interests
or other duties of the members of the Board of Directors or Officers and their duties and
responsibilities to the Company, except as described in paragraph 13.7 “Related Party Transactions”.

Protection of Directors and Officers
Limitation of liability
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No Director or Officer of the Company will be liable for the acts, receipts, neglects or
defaults of any other Director or Officer or employee, or for joining in any receipt or act for
conformity, or for any loss, damage or expense incurred by the Company through the insufficiency or
deficiency of title to any property acquired by the Company. This applies to property acquired for or
on behalf of the Company and to the insufficiency or deficiency of any security in or upon which any
of the money of or belonging to the Company is will be placed or invested. Aforementioned is
applicable, unless it happens by or through a failure of the relevant Director or Officer to exercise the
powers and to discharge the duties of his office honesty, in good faith and with a view to the best
interests of the Company and to exercise the care, diligence and skill that a reasonable prudent person
would exercise in comparable circumstances.
Nor will any of the Directors and Officers be liable for any loss or damage arising from the
bankruptcy, or insolvency of any person, firm or corporation (including any person, firm or
corporation with whom or with which any money, securities or effects will be lodged or deposited), or
for any loss, conversion, misapplication or misappropriation of or any damage resulting from any
dealings with any money, securities or other assets of or belonging to the Company or for any other
loss, damage or misfortune whatsoever which may happen in the execution of the duties of his
respective office or in relation thereto. Aforementioned is applicable, unless it happens by or through
a failure of the relevant Director or Officer to exercise the powers and to discharge the duties of his
office honestly, in good faith and with a view to the best interests of the Company and to exercise the
care, diligence and skill that a reasonably prudent person would exercise in comparable
circumstances.
Indemnity
The Company will, to the maximum extent permitted under the ABCA, indemnify a Director
or Officer, a former Director or Officer, and a person who acts or acted at the Company’s request as a
Director or Officer of a body corporate of which the Company is or was a shareholder or creditor, and
his heirs and legal representatives, against all costs, charges and expenses, including any amount paid
to settle an action or satisfy a judgment, reasonably incurred by him in respect of any civil, criminal or
administrative action or proceeding to which he is made a party by reason of being or having been a
Director or Officer of the Company or such body corporate, including (without limitation) any such
action by or on behalf of the Company or such body corporate to procure a judgment in its favour, and
the Company will use its reasonable best efforts to obtain any approval or approvals necessary for
such indemnification.
Corporate Governance
The Board of Directors is committed to a high standard of corporate governance practices.
The Board of Directors believes that this commitment is not only in the best interests of the
Shareholders but that it also promotes effective decision making at the Board of Directors level. The
Board of Directors is of the view that its approach to corporate governance is appropriate given the
size and the nature of the Company.
Compliance with corporate governance guidelines
While there is no mandated corporate governance code in Canada, provincial securities
commissions have adopted National Policy 58-201 – Corporate Governance Guidelines ("NP 58-
201") which sets out guidelines or best governance practices and Multilateral Instrument 52-110 -
Audit Committees ("MI 52-110") which mandates the composition and the responsibilities of Audit

Committees.
Corporate governance guidelines
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The guidelines set out in NP 58-201 are prescriptive and companies are encouraged to
consider these guidelines in formulating practices which are best suited to them. The Company has
generally adopted the guidelines set forth in NP 58-201, with the following material exceptions:
• NP 58-201 recommends that the majority of the Board of Directors be independent as defined
in NI 58-101- Disclosure of Corporate Governance Practices (“NI 58-101”). Of the current
Board of Directors, 50% are independent: Dr. Carmichael, Mr. Fitzgerald and Mr. Ovsenny.
Mr. Richard Homburg directly and indirectly controls the majority of the voting stock and is
thus not independent. Mr. Rudolf Bakhuizen, together with Mr. Richard Homburg, indirectly
controls approximately 14% of the outstanding voting stock and thus is not independent as
defined in NI 58-101. Mr. Michael Arnold provides, through his private company,
management services to one of the Company's properties and thus would not be considered
independent as defined in NI 58-101. The property and the fees paid in conjunction with the
property are not material to the Company.
• NP 58-201 recommends that the Chairman of the Board of Directors be an independent
Director or if the Chairman is not an independent Director, that a "lead Director" who is
independent be appointed. Mr. Richard Homburg is not an independent Director for the
reasons set out above and the Board of Directors has ascertained that a lead Director is not
necessary given the size of the Board of Directors and the approach the Board of Directors
takes to provide leadership for its independent Directors. Directors are selected not only for
their proven business skills but also for their ability to participate fully and freely in
discussions in the decision making process. All members of the Board of Directors are given
the time necessary to ask questions and to express their independent views. Independent
Directors may request to meet separately from the rest of the Board of Directors, if and when
they believe it is appropriate, and the Board of Directors routinely establish independent
committees to deal with matters which involve approval of a matter where one or more
Directors has a significant conflict of interest or where required by securities legislation rules
and regulations.
Audit committee mandate
The Company complies with all of the mandated rules for Audit Committees set out in MI 52-
110 with the exception of the independence of one member of the Audit Committee. MI 52-110
requires each member of the Audit Committee be independent. MI 52-110 defines independence to
mean the absence of any direct or indirect material relationship between the director and the issuer
and deems that the consultancy relationship between Mr. Michael Arnold and the related entity to the
Company would reasonably interfere with the exercise of the person's independent judgement. While
the Board of Directors acknowledges that Mr. Michael Arnold is not independent, it concludes that
Mr. Michael Arnold's financial and real estate knowledge and experience are important to the work of
the Audit Committee and that he will carry out his duties independently. The Board of Directors is
expected to consider adding an independent Director to the Board and to the Audit Committee. It is
expected that this Director would replace Mr. Michael Arnold on the Audit Committee.
Conflict of Interests
The ABCA provides that every director and officer of a corporation, when exercising the
powers and discharging the duties of a director or an officer, must act honestly and in good faith with
a view to the best interests of the corporation, and must exercise the care, diligence and skill that a
reasonably prudent individual would exercise in comparable circumstances, and act in accordance
with the ABCA, the regulations adopted under the ABCA and the articles and by-laws. In accordance

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with the ABCA, directors or officers who are parties to a material contract or transaction or a
proposed material contract or transaction or who have a material interest in any person who is a party
to a material contract or transaction or a proposed material contract or transaction with the corporation
are required to disclose that interest and, subject to certain exceptions, abstain from voting on any
resolution to approve the contract or transaction. For this reason, Richard Homburg and other
Directors have and will continue to abstain from voting on all matters involving related party
contracts where potential conflicts of interest may arise. Under the ABCA, if the director or officer
does not make such disclosure, or approval is not obtained, the director or officer could be liable to
account for any profit that accrues to the director or officer under or as a result of such contract or
transaction. The ABCA provides that a material contract or material transaction made with a director
or in which the director has a material interest is neither void or voidable by reason only that such
director is present at or counted to determine the presence quorum provided that the director properly
disclosed his or her conflict of interest, the transaction was approved by the directors or shareholders
and was reasonable and fair to the Corporation at the time it was approved.
Meetings and Voting Rights
Annual meetings of Shareholders are generally called by the Board of Directors within 15
months of the previous annual meeting. Special meetings of Shareholders are called when the
Company wishes to make any proposals to its Shareholders other than the election of Directors or the
appointment of the auditors of the Company. Both annual meetings of Shareholders and special
meetings are called by sending a notice of the meeting and record date to all Shareholders entitled to
vote at the meeting, the Directors and auditors of the Company no later than 21 days and no more than
50 days prior to the meeting. The notice must also be filed with the applicable Canadian securities
regulatory authorities and the TSX. Pursuant to the Articles and By-Laws, meetings of Shareholders
may be held in Calgary, Alberta, Halifax, Nova Scotia, Toronto, Ontario, Vancouver, British
Colombia or at such other city located in Canada, as agreed upon by the Directors. The ABCA also
requires notice of the meeting to be published in a general circulation paper where the Company has
its registered office (Calgary), and where the Company has a transfer agent (Calgary, Toronto and
Halifax), seven days before the record date.
Pursuant to the Financial Supervision Act, the Company will also announce its annual meeting of
Shareholders in a Dutch newspaper (Het Financieele Dagblad) and in the Daily Official (Officiële
Prijscourant) at least 14 days before the date of the meeting.
Subject to any limitations or requirements set out in the regulations to the ABCA, any
Shareholder or any other person entitled to attend a meeting of Shareholders may participate in the
meeting by electronic means, telephone or other communication facilities that permit all persons
participating in the meeting to hear or otherwise communicate with each other if the chairman of the
meeting or all the Shareholders present and entitled to vote at the meeting consent.
The only persons entitled to be present at an annual meeting of Shareholders or special
meeting of Shareholders are:
• those entitled to vote at such meeting;
• the Directors and auditors of the Company;
• others who, although not entitled to vote, are entitled or required under any provision
of the ABCA, the Articles or the By-Laws to be present at the meeting;
• legal counsel to the Company when invited by the Company to attend the meeting;
and
• any other person on the invitation of the chairman or with the consent of the annual

meeting of Shareholders.
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The chairman of a meeting of Shareholders, who need not be a Shareholder of the Company,
will be the first mentioned of the following Officers as has been appointed and is present and willing
to act in this capacity at the meeting of Shareholders: Chairman of the Board, President or Vice
President (in order of seniority). If no such Officer is present or willing to act as chairman within 15
minutes from the time fixed for holding the meeting, the persons present and entitled to vote will
choose one person among them to act as chairman. The secretary of any meeting of Shareholders will
be the Secretary of the Company, provided that, if the Company does not have a secretary or if the
Secretary of the Company is absent, the chairman of the meeting of Shareholders will appoint another
person, who need not be a Shareholder, to act as Secretary of the meeting.
A quorum for the transaction of business at any meeting of Shareholders will be at least two
persons present in person, each being a Shareholder entitled to vote at the meeting or a duly appointed
proxy or representative for an absent Shareholder so entitled, and representing in the aggregate not
less than 5% of the outstanding shares of the Company carrying voting rights at the meeting, provided
that, if there should be only one Shareholder of the Company entitled to vote at any meeting of
Shareholders, the quorum for the transaction of business at a meeting of Shareholders consists of the
one Shareholder.
The Shareholders will act by ordinary resolution unless otherwise required by the ABCA,
Articles, By-Laws, any unanimous shareholders’ agreement or the TSX. In case of an equality of
votes either upon a show of hands or upon a poll, the chairman of the meeting will not be entitled to a
second or casting vote.
Registered holders of Class A Shares as of the relevant record date are entitled to one vote for
each Class A Share held and registered holders of Class B Shares as of the relevant record date are
entitled to 25 votes for each Class B Share held. Holders of Class A Preferred Shares and Class B
Preferred Shares, if and when issued, are not entitled to vote except under limited circumstances.
Voting will take place by show of hands or by ballots in accordance with the requirements of the
ABCA.
Due to the fact that the Class B Shares carry multiple voting rights while having the same
financial rights as the Class A Shares, the Class B Shares may prevent an offer by a third party for the
outstanding shares party from being successful or from being made without the approval of the
holders of the Class B Shares. The majority of the Class B Shares are directly or indirectly held by the
Chairman and Chief Executive Officer of the Company, Mr. Richard Homburg.
The major Shareholders do not have different voting rights from all other Shareholders
holding the same classes of shares.
Amendment of the Articles
The Articles may be amended by special resolution of the Shareholders passed by a majority
of not less than two-thirds of the votes cast by the Shareholders who voted in respect of the resolution
at a special meeting of Shareholders. Certain types of amendments may require the separate approval
of each class of Shareholders. Some of the amendments would also provide a dissenting Shareholder
with the right to be paid the fair value of such dissenting Shareholder’s shares in accordance with
section 191 of the ABCA.
The holders of each class or series (if the series is affected by an amendment in a manner
different from other shares of the same class) of shares, including the Class A Shares, Class B Shares,
Class A Preferred Shares and Class B Preferred Shares, are entitled to vote separately as a class or
series (if applicable), whether or not shares of a class or series otherwise carry the right to vote, on a
proposal to amend the Articles to:

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• increase or decrease the maximum number of authorized shares of that class;
• increase the maximum number of authorized shares of a class having rights or
privileges equal or superior to the rights or privileges attached to the shares of that
class;
• effect an exchange, reclassification or cancellation of all or part of the shares of that
class;
• add, change or remove the rights, privileges, restrictions or conditions attached to the
shares of that class and, without limiting the generality of the foregoing, (i) remove or
change prejudicially rights to accrued dividends or rights to cumulative dividends, (ii)
add, remove or change prejudicially redemption rights, (iii) reduce or remove a
dividend preference or a liquidation preference, or (iv) add, remove or change
prejudicially conversion privileges, options, voting, transfer or pre-emptive rights,
rights to acquire securities of a corporation or sinking fund provisions;
• increase the rights or privileges of any class of shares having rights or privileges
equal or superior to the rights or privileges attached to the shares of that class;
• create a new class of shares having rights or privileges equal or superior to the rights
or privileges attached to the shares of that class;
• make the rights or privileges of any class of shares having rights or privileges inferior
to the rights or privileges of the shares of that class equal or superior to the rights or
privileges of the shares of that class;
• effect an exchange or create a right of exchange of all or part of the shares of another
class into the shares of that class, or
• constrain the issue or transfer of the shares of that class or extend or remove that
constraint.
The Board of Directors, if authorized in the special resolution effecting an amendment to the
Articles, may revoke the resolution before it is acted on without further approval of the Shareholders.
Notice of a meeting at which a proposal to amend the Articles is to be considered will set out
the proposed amendment, the text of the special resolution to be considered and, if applicable, will
state that a dissenting Shareholder is entitled to be paid the fair value of the Shareholder’s shares in
accordance with section 191 of the ABCA, but failure to make that statement does not invalidate an
amendment.
A proposed amendment to the Articles is adopted when the Shareholders entitled to vote
(either together or separately as class or series) as required under the ABCA, have approved the
amendment by a special resolution passed by a majority of not less than two-thirds of the votes cast
by the Shareholders of each class or series (as applicable) who voted in respect of the resolution.
Subject to any revocation, after an amendment has been adopted, articles of amendment in the
prescribed form will be sent to the Registrar of Corporations in the Province of Alberta (the
"Registrar"). If an amendment is to change the name of the Company, documents relating to corporate
names that are prescribed by the regulations will, unless otherwise provided by the Registrar, be sent
to the Registrar. On receipt of articles of amendment, the Registrar will issue a certificate of
amendment. An amendment becomes effective on the date shown in the certificate of amendment and
the Articles are amended accordingly.
No amendment to the Articles affects an existing cause of action or claim or liability to

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prosecution in favour of or against the Company or any of the Directors or Officers, or any civil,
criminal or administrative action or proceeding to which the Company or any of its Directors or
Officers is a party.
Pursuant to the Financial Supervision Act, the Company will announce any proposed
amendment (and the execution of the proposed amendment) to the Articles on its website and in a
Dutch national newspaper (Het Financieele Dagblad). Any proposal to amend the Articles will be
announced and explained on the Company’s website. If such amendment would adversely affect the
rights or securities of the Shareholders, such amendment will not come into force earlier than three
months after said announcement.
Dissolution and Liquidation
The Directors, or a Shareholder who is entitled to vote at an annual meeting of Shareholders,
may propose the voluntary liquidation and dissolution of the Company under the ABCA. Notice of
any meeting of Shareholders at which voluntary liquidation and dissolution is to be proposed will set
out the terms of the liquidation and dissolution.
The Company may liquidate and dissolve by special resolution of the holders of each class of
shares requiring an affirmative vote by a majority of not less than of two-thirds of the votes cast by
the holders of the shares of each such class (whether or not they are otherwise entitled to vote).
To effect the dissolution and liquidation of the Company, a statement of intent to dissolve in
prescribed form must be sent to the Registrar. On receipt of a statement of intent to dissolve, the
Registrar will issue a certificate of intent to dissolve and the Company will cease to carry on business
except to the extent necessary for the liquidation, but its corporate existence continues until the
Registrar issues a certificate of dissolution.
Following the issue of a certificate of intent to dissolve, the Company will (a) immediately
cause notice of the issue of the certificate to be sent or delivered to each known creditor of the
Company, (b) forthwith publish notice of the issue of the certificate (i) in the Registrar’s periodical or
The Alberta Gazette and (ii) in a newspaper published or distributed in the place where the Company
has its registered office (Calgary, Canada), and take reasonable steps to give notice of the issue of the
certificate in every jurisdiction where it was carrying on business at the time it sent the statement of
intent to dissolve to the Registrar, (c) proceed to collect its property, dispose of properties that are not
to be distributed in kind to its Shareholders, discharge all its obligations and do all other acts required
to liquidate its business, and after giving the notice required and adequately providing for the payment
or discharge of all its obligations, distribute its remaining property, either in money or in kind, among
the Shareholders according to their respective rights. The Registrar or any interested person may, at
any time during the liquidation of the Company, apply to the competent court for an order that the
liquidation be continued under the supervision of the relevant court and on the application the court
may so order and make any further order it thinks fit. Any applicant will give the Registrar notice of
the application, and the Registrar is entitled to appear and be heard in person or by counsel.
At any time after the issue of a certificate of intent to dissolve and before the issue of a
certificate of dissolution, a certificate of intent to dissolve may be revoked: (a) by sending to the
Registrar a statement of revocation of intent to dissolve in the prescribed form and approved in the
same manner as the resolution, and (b) by publishing the statement in the Registrar’s periodical or The
Alberta Gazette. On receipt of a statement of revocation of intent to dissolve, the Registrar will issue a
certificate of revocation of intent to dissolve in accordance with the provisions of the ABCA. On the
date shown in the certificate of revocation of intent to dissolve, the revocation is effective and the
corporation may continue to carry on its business or businesses.
If a certificate of intent to dissolve has not been revoked and the Company has complied with
the requirements of the ABCA, including discharging its liabilities and obligations and distributing its
assets, the Company will prepare articles of dissolution in the prescribed form and send them to the

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Registrar. The Company ceases to exist on the date shown a certificate of dissolution issued by the
Registrar.
Registrar and Stock transfer agent
Each Director and each Officer has significant experience in a broad range of real estate
investments and developments.
13.2 Board of Directors
In accordance with the Company’s Articles, the Board of Directors of the Company shall
consist of a minimum of three and a maximum of 15 directors. There are currently six Directors
serving on the Board of the Company, three of whom are independent. In light of the current
Canadian corporate governance environment and to reflect the substantial growth in its real estate
assets in recent years, the Company is committed to having a Board of Directors where a majority of
the directors are independent. The Company is in the process of identifying an additional independent
director. Such independent director will have significant public market experience and, ideally, a
combination of real estate expertise and financial acumen. Once identified, this additional
independent director will be appointed to the Board as soon as practicable and in no event later than
August 3, 2007.
In relation to each of the Directors and Officers, we are not aware of (i) any convictions or
other legal sanctions in relation to fraudulent offences in the last five years, (ii) any bankruptcies,
receiverships or liquidations of any entities in which members of our Board of Directors or Officers
held any office, directorships or senior management positions in the last five years, or (iii) any official
public incrimination and/or sanctions of such person by statutory or regulatory authorities (including
designated professional bodies), or disqualification by a court from acting as a member of the
administrative, management or supervisory bodies of a company or from acting in the management or
conduct of the affairs of any company for at least the previous five years.
We are not aware of any potential conflicts of interest between the private interests or other
duties of the members of the Board of Directors or Officers and their duties and responsibilities to us,
except
as described in paragraph 13.7 ‘‘Related Party Transactions’’.
All of the Directors principal business address is at the Company´s head and principal offices,
at Suite 600, 1741 Brunswick Street, Halifax, Nova Scotia B3J 3X8, Canada.
The following table sets forth the name and municipality of residence of each Director, as
well as their current positions with the Company, the date they were first elected to the Board of
Directors, their principal occupation and their respective ownership of shares of the Company.
Name and Municipality
of Residence
Richard Homburg (1)
Amsterdam,
the Netherlands
Michael H. Arnold, CA
(2)
Charlottetown, Prince
Current Position with the
Company,
Date Elected
Chairman and Chief
Executive Officer
October 23, 2000
Director
April 26, 2002
Vice Chairman
October 28, 2005
Principal Occupation &
Position held during the last
5 years
Chairman and Chief
Executive Officer of the
Company and Chairman of
the Board of Directors of
Homburg Uni-Corp
Incorporated, a private
holding company
President of Dyne Holdings
Limited, a real estate
management company
Class A Shares held as
at June 4, 2007
40,291,909 (3)(5)(6)
111,716 38,143
Class B Shares
held as at June 4,
2007
24,378,900 (3)(7)

Name and Municipality
of Residence
Edward Island
Rudolf D. Bakhuizen (1)
Baarn, the Netherlands
Dr. Trevor A.
Carmichael (1)(4)
Bridgetown, Barbados
Walter R. Fitzgerald
(2)(4)
Halifax, Nova Scotia
Edward P. Ovsenny (2)(4)
Toronto, Ontario
Notes:
Current Position with the
Company,
Date Elected
Director
October 23, 2000
Director
June 18, 2004
Director
June 18, 2004
Director
April 26, 2002
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Principal Occupation &
Position held during the last
5 years
Chief Executive Officer,
Huis en Haard Beheer B.V.,
a private holding company
in Amsterdam
Principal, Chancery
Chambers, Barristers &
Solicitors, Barbados
Retired Mayor, Regional
Municipality of Halifax
(1996 -2000)
Previously Member of
Legislative Assembly and
Cabinet Minister, Province
of Nova Scotia
Principal, Ovsenny Advisors
International real estate
consultants and prior
thereto, Vice President,
Mortgage Investment of
Canada Life Insurance
Company
Class A Shares held as
at June 4, 2007
177,824 (3)(8)
NIL NIL
NIL NIL
Class B Shares
held as at June 4,
2007
25,000 (3)(8)
81,408 25,703
(1) Member of the Executive Committee (Richard Homburg, Chairman).
(2) Member of the Audit Committee (Edward P. Ovsenny, Chairman).
(3) Direct and indirect holdings.
(4) Independent Directors within the meaning of applicable Canadian securities laws.
(5) Including 32,403,911 Class A Shares held by Homburg North America Limited. Richard Homburg owns approximately 87% of
the common shares of Homburg North America Limited, while Rudolf D. Bakhuisen owns the remaining 13%.
(6) In addition to the Class A Shares listed in this table as held by Richard Homburg, Stollburgh B.V., a company jointly owned and
controlled (50/50) by Mr. Homburg and J. Richard Stolle, owns 310,000 Class A Shares. In addition, Stollburgh B.V. owns 50%
of S.U.V. B.V., which in turn owns 690,000 Class A Shares.
(7) Including 23,,434,850 Class B Shares held by Homburg North America Limited. Richard Homburg owns approximately 87% of
the common shares of Homburg North America Limited, while Rudolf D. Bakhuisen owns the remaining 13%.
(8) In addition to the Class A Shares listed in this table as hold by Rudolf D. Bakhuizen, Mr. Bakhuizen owns 13% of the common
shares of Homburg North America Limited, which holds 32,403,911 Class A Shares and 23,434,850 Class B Shares.
The following are brief biographies for each of the Directors:
Richard Homburg
Born and educated in the Netherlands, Mr. Homburg came to Canada at the age of 23 and
started to expand the import/export business he had started as a teenager. Profits from his business
were invested in real estate. These investments in real estate expanded from Atlantic Canada to
Alberta, British Columbia and into the United States. In 1991, Mr. Homburg became Chief Executive
Officer of Uni-Invest , a publicly listed Dutch real estate fund. In 2002, Uni-Invest, one of the largest
real estate funds in the Netherlands, was acquired by a consortium that included Lehman Brothers
Real Estate Partners.
In addition to his varied business interests, Mr. Homburg has served on many boards of
directors, including those of Investment Property Owners of Nova Scotia (of which he is also a former
president), Evangeline Trust and the World Trade Center in Eindhoven, the Netherlands, as well as on
the board of directors and advisory boards of other large charitable organizations.

Michael H. Arnold
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Michael H. Arnold is the Vice Chairman of the Board of Directors. He was born in
Summerside, Prince Edward Island, Canada. He obtained his Chartered Accountancy designation in
Québec in 1966 through McGill University and the Québec Institute of Chartered Accountants, while
working for accounting firm MacDonald, Currie & Co. Furthermore, he worked as sessional lecturer
at Prince of Wales College from 1967 to 1969 and assistant professor of Business Administration at
the University of Prince Edward Island from 1969 to 1973.
He has been involved in a number of business activities over the years, including the
acquisition and management of Holman’s, a department store chain based in Prince Edward Island
with stores in Halifax, Nova Scotia as well. Through his company Dyne Holdings Limited, he
developed Confederation Court Mall, National Bank Tower and BDC Place in Charlottetown, Prince
Edward Island. After successfully owning and operating these properties for many years, he sold them
to Homburg in 1999.
Mr. Arnold is currently President of Dyne Holdings Limited, a member of the boards of
directors of SpellRead PAT Learning Systems and Diagnostic Chemicals Limited and a member of
the institute for Chartered Accountants.
Rudolf D. Bakhuizen
Rudolf D. Bakhuizen is a member of the supervisory board of Homburg N.V. He was born in
Hilversum, the Netherlands. He is an educated and experienced building constructor. In the early
seventies, his focus shifted from construction to real estate.
Mr. Bakhuizen is a seasoned real estate expert, with a vast experience in real estate
management, operation and acquisition. He has led many real estate companies as Chief Executive
Officer, such as Hooge Readt Groep B.V.
He is currently Chief Executive Officer of Huis en Haard Beheer B.V., a real estate
investment company. He is also a director of the Dutch charitable organizations General Association
of Third World Aid Shops (Algemene Vereniging van Wereldwinkels) and the Femi Foundation (as
Chairman).
Trevor A. Carmichael
Trevor A. Carmichael was born in Barbados and educated at Harrison College and the
University of the West Indies, Mona, Jamaica. After pursuing post graduate studies in the United
States, he was called to the United Kingdom Bar. He is a former Deputy Secretary General of the
International Bar Association, a Life Fellow of the Institute for Advanced Legal Studies in the United
Kingdom, a Life Member of the Commonwealth Magistrates and Judges Association and a member of
the International Law Association.
Dr. Carmichael is a panel member of the International Centre for Settlement of Investment
Disputes of the World Bank in Washington. He is also a member of the Legal Affairs and Properties
Committee of the International Council of Museums in Paris, France. Dr. Carmichael has been the
keynote speaker at the Canadian Condominium Institute’s Annual Meetings in Toronto, Canada. He is
a recipient in the National Honours List of the Silver Crown of the Merit for his contribution to law,
financial services and the preservation of the national heritages.
Dr. Carmichael is a Principal of Chancery Chambers, a Barbados-based law firm engaged
primarily in international business law, environmental law and the law relating to charities.

Walter R. Fitzgerald
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Walter R. Fitzgerald was born in Halifax. He attended Dalhousie University where he
obtained a Bachelor’s Degree (1958), a Bachelor in Education Degree (1959) and a Master’s Degree
(1960).
Mr. Fitzgerald began his career as a teacher and administrator. He was elected alderman for
the city of Halifax in 1966. In 1971, he was elected mayor of Halifax. In total, Mr. Fitzgerald has been
alderman for 10 years and mayor for 14 years spread over several terms. In between the
aforementioned terms, he was a member of the Legislative Assembly in the province of Nova Scotia
for six years and was made a member of the Cabinet as Minister of Labour and Minister responsible
for Housing.
Furthermore, Mr. Fitzgerald remains involved in many boards and commissions. Amongst
others, he was Chairman of the Halifax County Residential Tenancies Board and President of the
Halifax Homeowners Association.
Edward P. Ovsenny
Edward P. Ovsenny is a Commerce and Finance graduate from the University of Toronto. As
a retiring Vice President of Mortgage Real Estate Investments for the Canada Life Assurance
Company, he has 24 years of experience in commercial real estate financing and portfolio
management of Canada Life’s Canadian and U.S. mortgages.
Mr. Ovsenny has served on numerous Canada Life and investment industry committees and
advisory groups. Other distinctions include his standing as a Fellow of the Life Management Institute
and successful completion of the Executive MBA programme at Queen’s University.
Mr. Ovsenny is Principal of Ovsenny Advisors Real Estate Consultants. In addition, he is a
member of the board of directors of the Canada Life Insurance Company and serves on its Audit and
the Conduct Review Committee of the Canada Life Insurance Company.
13.3 Senior Officers
The following table sets forth the name of each Officer, as well as their current positions with
the Company, the date they were first appointed as Officers and their respective ownership of shares
of the Company.
Name and Municipality
of Residence
Richard Homburg
Amsterdam, the Netherlands
J. Richard Stolle
Amsterdam, the Netherlands
Ashley Phillips
Calgary, Alberta
Position & Position held
during the last 5 years
Chairman and Chief
Executive Officer and
Chairman of the Board of
Directors of Homburg Uni-
Corp Incorporated, a private
holding company.
President and Chief
Operating Officer.
2002-2005 Chief Operating
Officer of Uni-Invest N.V.
Since 2005 Chief Operating
Officer of Stollburgh B.V.
President, Canadian
Operations.
Executive Vice President
Officer Since
Class A Shares
held as at
June 4, 2007
October 2000 40,291,909 (1)(2)
February 2006 202,866 (2)
Class B Shares
held as at
June 4, 2007
24,378,900 (1)
NIL
October 2006 87,286 38,780

James F. Miles, CA
Dartmouth, Nova Scotia
J. Jeffery Coates
Bedford Nova Scotia
Notes:
(and prior to that Vice
President) Operations,
Homburg Canada
Incorporated.
Vice President Finance and
Chief Financial Officer.
Chief Financial Officer (and
prior to that Vice President
Finance and
Administration), Homburg
Canada Incorporated.
Assistant Secretary,
Homburg LP Management
Incorporated.
Secretary. Vice President,
Homburg Canada
Incorporated.
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January 2004 90,262 40,279
January 2004 76,299 31,298
(1) Direct and indirect holdings.
(2) In addition to the Class A Shares listed in this table as held by Richard Homburg and J. Richard Stolle, Stollburgh
B.V., a company jointly owned and controlled (50/50) by Messrs. Homburg and Stolle, owns 310,000 Class A
Shares. In addition, Stollburgh B.V. owns 50% of S.U.V. B.V., which in turn owns 690,000 Class A Shares.
All of the Officers principal business address is at the Company´s head and principal offices,
at Suite 600, 1741 Brunswick Street, Halifax, Nova Scotia B3J 3X8, Canada.
The following are brief biographies for each of the senior Officers:
Richard Homburg
See paragraph 13.2 “Board of Directors – Richard Homburg”.
J. Richard Stolle
J. Richard Stolle is the President and Chief Operating Officer of the Company. He is
responsible for all of the operational aspects of the Company.
Mr. Stolle has a Masters Degree in Economics (Drs.) from Erasmus University in Rotterdam
and worked for ABN AMRO Bank before joining Uni-Invest N.V. From 1993 to 2002, Mr. Stolle was
Chief Financial Officer of Uni-Invest N.V. and from 2002 to 2005 was Chief Executive Officer of
Uni-Invest N.V., at that time a publicly listed Dutch real estate fund. In 2002, Uni-Invest N.V. was
acquired by a consortium that included Lehman Brothers Real Estate Partners. At the time of the
acquisition by the consortium, Uni-Invest N.V. was one of the largest real estate funds in the
Netherlands.
Mr. Stolle is also the Chief Executive Officer of Stollburgh Capital B.V., a private real estate
investment and advisory firm and a member of the supervisory board of ActiveInvestor Management
B.V., a management company of private investment funds.
Ashley Phillips
Ashley Phillips is the President, Canadian Operations for Homburg and is directly responsible
for the operational aspects of the Canadian real estate portfolio. In addition, he is Executive Vice
President of Homburg Canada.
Mr. Phillips graduated from Acadia University with a Bachelors Degree in Economics. He

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also graduated from the Building Owners and Managers Institute (BOMA) with the designation of
Real Property Administrator (RPA).
Mr. Phillips joined Homburg in 1992 and has covered various aspects of the Company’s real
estate portfolio. He has worked in the Halifax, Moncton, Calgary, and Vancouver markets during his
career with Homburg and is currently working out of the Company’s Calgary office.
James F. Miles
James F. Miles is Vice President Finance and Chief Financial Officer of Homburg. He is
responsible for all financial aspects of the Company. In addition, he is Chief Financial Officer and a
director of Homburg Canada.
Mr. Miles holds a Bachelor’s Degree in Commerce from Dalhousie University and is
qualified as a Chartered Accountant (New Brunswick) in 1988. He was employed at Grant Thornton
LLP for 10 years, where he provided audit and accounting services to clients ranging from
owner/manager businesses to public companies.
Mr. Miles is a member of the Institute of Chartered Accountants of Nova Scotia, the Canadian
Institute of Chartered Accountants and the Financial Executives Institute.
J. Jeffery Coates
J. Jeffery Coates is the Investor Relations Officer and Secretary of Homburg and is also the
Vice President of Homburg Canada. He is responsible for all facets of investor relations and
communication with the TSX and Eurolist.
Mr. Coates started his career at Central Guarantee Trust Company (which has become a
Canadian chartered bank), where he became a vice president with responsibility for a portfolio of
$640 million. He then moved to Adelaide Capital Corp. to become a vice president with responsibility
for the management and disposition of various financial assets, including mortgages and equipment
loans and real estate.
13.4 Committees of the Board of Directors
Audit Committee
The Board of Directors has established the Audit Committee to oversee the retention,
performance and compensation of the Company’s independent auditors, and to oversee and establish
procedures concerning systems of internal accounting and control. The Audit Committee is currently
composed of three Directors, two of whom are independent and all of whom are financially literate (as
defined by Canadian securities laws and regulations): Messrs. Ovsenny (Chair), Arnold and
Fitzgerald. The Board of Directors intends to have the Audit Committee entirely composed of
independent directors as soon as practicable.
Corporate Governance Committee
The Board of Directors intends to create a corporate governance committee in the near future.
This committee will be responsible for developing and monitoring the Company’s overall approach to
corporate governance, including establishing a code of conduct and ethics for the Company,
overseeing the Company’s policy on insider trading, ensuring compliance with National Instrument
58-101 — Disclosure of Corporate Governance Practices and National Policy 58-201 — Corporate
Governance Guidelines, making recommendations on director compensation, overseeing an education
program for the Board and examining and making recommendations on the size and composition of
the Board. The governance committee will also evaluate the effectiveness of the Board of Directors as

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a whole its committees and the contribution of individual directors. It is intended that the corporate
governance committee will be composed of no less than three members, all of whom will be
independent.
Executive Committee
The Board of Directors has also established an Executive Committee to oversee the activities
of the Company between meetings of the Board of Directors. The Executive Committee is composed
of three members: Messrs. Homburg, Bakhuizen and Carmichael. Given the size of the Board of
Directors and the ease with which a quorum can be obtained, it has not been considered necessary to
date to hold Executive Committee meetings. As a result, there has been no formal delineation of
authority for the Executive Committee and a charter has not been developed.
International Advisory Board
At the Board of Directors’ meeting held on February 11, 2006, the Directors unanimously
approved the creation of a non-statutory advisory board. The advisory board, when fully formed, will
consist of six high profile members, three from Europe and three from North America. The advisory
board advises the Company in respect of general business matters.
The members will be a valuable source of both information and influence as Homburg
continues to pursue its growth strategy in Canada, Europe and the United States, and they are the
following individuals:
Evert Brouwers
From 1995 to 2004, Mr. Brouwers was Executive Director and later Director General for the
Netherlands Government Information Service acting as spokesman for the Prime Minister, Her
Majesty the Queen and the Royal Family. Prior to this, Mr. Brouwers had a long and distinguished
career in journalism and business. Mr. Brouwers’ early career included print and television journalism
followed by a period from 1978 to 1983 as Editor in Chief, Nieuwsblad van het Noorden. Mr.
Brouwers also served for 12 years as the official spokesman for Phillips Electronics worldwide.
The Honourable Myra A. Freeman ONS
The Honourable Myra A. Freeman Order of Nova Scotia (“ONS”) is the former Lieutenant
Governor of the Province of Nova Scotia (2000-2006) and the first Chancellor of the ONS. A
graduate of Dalhousie University and an educator, Mrs. Freeman is the recipient of a Doctor of
Humane Letters and a Doctor of Laws Honorus Causa. In 2004, she was presented with the Woman of
Action Humanitarian Award and was also recognized as one of Canada’s 100 Outstanding Women by
the Richard Ivy School of Business and the Women’s Executive Network. Appointed by the
Government of Canada, The Hon. Myra A. Freeman currently serves as Hon. Captain (Navy)
Maritime Forces Atlantic in Her Majesty's Canadian Forces and as a director on the board of
Historical Foundation of Canada.
Hartmut Fromm
Hartmut Fromm is attorney at law since 1973 and is the co-founder and a senior partner of
Buse Heber Fromm, an association which counts 10 offices with 150 lawyers in Germany as well as
six other European offices with altogether approximately 700 lawyers.
Mr. Fromm is a member of the board of directors and supervisory boards of public companies
and also a majority shareholder of a middle-sized engineering company and associate of a textile
trading company.

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As a consultant, Mr. Fromm’s area of expertise lies within corporate, finance, mergers &
acquisitions and real estate activities.
Karen Prentice, Q.C.
Karen Prentice, Queen´s Counsel (“Q.C.”), is currently a member of the Alberta Securities
Commission. From 1996 to 2004, she was a member of the senior executive team providing strategic
leadership to ENMAX Corporation, an electrical energy company competing in the Alberta
marketplace. Ms. Prentice’s achievements as Executive Vice-President included the company being
selected as one of Macleans Top 100 Employers in Canada and receiving three Building Owners and
Managers Association (BOMA) Calgary Awards for the ENMAX Head Office development.
Ms. Prentice is an active contributor to the Calgary community having served on a number of
boards, including the Southern Alberta Institute of Technology, the Y.W.C.A, the Calgary Opera, and
the University of Calgary, Faculty of Law, Dean’s Advisory Council.
Prof. Dr. Willem Vermeend
Dr. Vermeend is currently senior counsel with Boer & Croon Strategy Management Group
and professor of European Fiscal Economics at University of Maastricht. In addition, Dr. Vermeend is
Chairman and/or of several public company supervisory boards and a member of the board of trustees
of University Hospital Erasmus Rotterdam. Between 1994 and 2002, he was a member of the Dutch
Parliament and served as State Secretary of Finance and Minister of Labour and Social Affairs.
13.5 Remuneration and Expenses
Other than Richard Homburg, who has consistently waived any form of payment for his role
as a Director, the members of the Board of Directors receive a quarterly retainer fee of $2,500. The
chairman of the Audit Committee receives an additional amount of $1,875 per quarter and members
of the Audit Committee receive an additional $1,250 per quarter. No meeting fees are paid. The
compensation of the Directors is reviewed periodically by the Directors based on a survey conducted
by senior Management. The survey is conducted targeting companies of similar size with emphasis
placed on the real estate sector. The Board of Directors currently ensures, and the corporate
governance committee to be formed (see paragraph 13.1 under the heading “Committees of the Board
of Directors—Corporate Governance Committee”) will in the future be responsible for ensuring, that
the compensation of the Directors adequately reflects the responsibilities of being a Director. The
Directors do not receive any benefits upon termination of employment.
The Directors are also entitled to be reimbursed for reasonable travelling and other expenses
incurred by them for attending meetings of the Board of Directors or any committee thereof. The
Directors are not precluded from serving in any other capacity for the Company and receiving
remuneration for any such services.
The members of the advisory board receive an annual fee of $25,000 for their services.
The Company was a party to the Existing Property Management Agreements and Existing
Asset Management Agreements, both of which have been replaced by the Master Property and Asset
Management Agreement, with Homburg Canada pursuant to which Homburg Canada manages almost
all of the real estate assets of the Company. All of the Officers are employed and compensated
directly or indirectly by Homburg Canada. The Company does not pay any salaries or benefits to its
Officers. See paragraph 13.7 “Related Party Transactions” under the heading “Agreements with
Related Parties”.

13.6 Stock Option Plan
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Options are granted pursuant to the terms of the Company’s Stock Option Plan. The Company
may grant options to acquire Class A Shares to the Directors, Officers, employees of the Company
and those of its Subsidiaries and to persons engaged to provide ongoing management or consulting
services to Homburg, including but not limited to the directors, officers and employees of Homburg
Canada. As at June 4, 2007, there were 546,014 Class A Shares reserved for issuance pursuant to the
exercise of outstanding stock options issued under the Stock Option Plan. The Stock Option Plan no
longer permits the granting of new options to acquire Class B Shares and there are no options to
acquire Class B Shares outstanding.
13.7 Related Party Transactions
Holdings prior to and after the Offering
As at June 4, 2007, Richard Homburg owns or has control and direction over 40,291,909
Class A Shares and 24,378,900 Class B Shares, representing in aggregate 49% of the outstanding
shares and 73.2% of the votes associated with all outstanding shares of the Company. After giving
effect to the Offering (but without giving effect to the Over-Allotment Option), Richard Homburg will
own or have control or direction over Class A Shares and Class B Shares representing in the aggregate
38.5% of the outstanding shares and 70.3% of the votes associated with all of the outstanding shares.
As a director, Mr. Homburg is under Canadian law subject to fiduciary duties to the Company and its
stakeholders.
Agreements with Related Parties
The agreements described below relating to the management of the assets and properties of
the Company have been entered into by companies directly or indirectly controlled by Richard
Homburg.
Homburg Canada, a company indirectly controlled by Richard Homburg, has offices in
Halifax and Dartmouth, Nova Scotia, Montréal, Québec, and Calgary and Edmonton, Alberta and has
approximately 130 employees. Homburg Canada’s senior management team has extensive experience
in real estate finance, management, acquisition and development. Homburg Canada subcontracts its
European asset and property management activities for Homburg’s European assets (excluding the
Campeon Complex in Munich, Germany leased to Infineon Technologies AG) to Homburg Vastgoed,
an entity controlled directly and indirectly by Richard Homburg. Homburg Vastgoed performs asset
and property management services similar to those provided by Homburg Canada. In addition,
Homburg Vastgoed actively sources new acquisition and financing opportunities for the Company
through its offices in Amsterdam and Soest, in the Netherlands. The Campeon Complex in Munich,
Germany is managed by an unrelated third party. Neither Homburg Canada nor any other party
related to Richard Homburg receives property or asset management fees with respect to that property.
Homburg Canada’s U.S. asset and property management activities for Homburg’s U.S. assets are
carried on through Homburg Realty Services (US) Inc., a wholly-owned subsidiary of Homburg
Canada.
Almost all of the real estate assets directly or indirectly owned by the Company have been
managed by Homburg Canada pursuant to the Existing Property Management Agreements and
Existing Asset Management Agreements. The Existing Property Management Agreements and
Existing Asset Management Agreements have been replaced by the Master Property and Asset
Management Agreement that covers all properties currently owned by Homburg, wherever located,
except for properties held by the Minority Partnerships and the Campeon Complex in Munich,
Germany which will continue to be managed by an unrelated third party without payment of property
or asset management fees to Homburg Canada or any other party related to Richard Homburg. Such
Master Property and Asset Management Agreement has been entered into between, inter alia,

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Homburg and Homburg Canada at the closing of the Offering and will have an initial term expiring on
June 30, 2016 with automatic renewal terms of one year. Homburg Canada will continue to
subcontract its European asset and property management activities for Homburg’s European assets
(excluding the Campeon Complex in Munich, Germany) to Homburg Vastgoed, an entity controlled
directly and indirectly by Richard Homburg.
A majority of the Company’s real estate assets are currently held through the Partnerships.
Each Partnership has a general partner who is responsible for managing the Partnership and one or
more Limited Partners who provide equity in return for limited partnership units. The General Partner
for substantially all of the Partnerships is Homburg LP Management Incorporated. The General
Partner is controlled directly and indirectly by Richard Homburg.
The General Partner has full power and authority to transact the business of the Partnerships
and to deal with the assets for the use and benefit of the Partnerships. For these purposes, the General
Partner has sole, complete and unfettered power and authority to manage and carry on the business of
the Partnerships and to do all things required in connection with the Partnership including, but not
limited to, acquiring and disposing of real property, mortgaging and charging real property,
contracting for service, banking, appointing auditors, making capital distributions and selling or
acquiring limited partnership units. The Limited Partners cannot direct the General Partner, and can
only remove it as general partner of a given Partnership upon its bankruptcy or default under the
applicable limited partnership agreement. Except for the removal of the General Partner in the
circumstances described above and the appointment of a new general partner, the Limited Partners
shall have no right to direct the General Partner to implement any decision of the Limited Partners
without the consent of the General Partner. The limited partnership agreement for a Partnership does
not allow the Limited Partners to remove the General Partner except upon its bankruptcy or default
under the applicable limited partnership agreement. In order for the Limited Partners of a Partnership
to remove the General Partner in other circumstances, they must first amend the applicable limited
partnership agreement. The limited partnership agreement of a Partnership may be amended to change
any of the foregoing provisions, including the provision which limits the circumstances under which
the General Partner can be removed as general partner of the Partnership, by resolution passed at a
meeting of unitholders of the Partnership provided such resolution is approved by a vote of persons,
owning or representing in person or by proxy a minimum of 70% of all units of the Partnership,
present or represented and entitled to vote at the meeting in favour of such amendment. The holders of
25% or more of the units of a Partnership may cause the General Partner to call a meeting of
unitholders of a Partnership. Except for the Minority Partnerships, Homburg controls 99% of the
voting rights attached to the units of each Partnership. See Chapter 16 “Organizational Structure”.
Master Property and Asset Management Agreement
Homburg and Homburg Canada have entered into the Master Property and Asset
Management Agreement at the date of closing of the Offering. The Master Property and Asset
Management Agreement supersedes the Existing Property Management Agreements and the Existing
Asset Management Agreements and will apply to all future real estate acquired by Homburg.
However, the fees payable under the Existing Property Management Agreements and Existing Asset
Management Agreements shall generally remain unchanged in the Master Property and Asset
Management Agreement. The principal terms of the Master Property and Asset Management
Agreement are as follows:
Term and Termination
The Master Property and Asset Management Agreement will have an initial term expiring on
June 30, 2016 with automatic renewal terms of one year. Homburg shall be entitled to terminate the
Master Property and Asset Management Agreement prior to the expiry of the initial term or any
renewal term by providing six months’ prior written notice and, except where termination results from
the gross negligence of Homburg Canada, by paying an amount equal to (i) 20% of the average total

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monthly compensation for its property management services multiplied by the number of months
remaining in the then current term, and (ii) the asset management fees paid over the previous two
years. Homburg Canada shall be entitled to terminate the Master Property and Asset Management
Agreement by providing 12 months prior written notice to Homburg.
Property Management Services Fees
As property manager, Homburg Canada will provide general property management services
to the Company, the Partnerships and Homburg Holdings (U.S.) Inc.
Homburg Canada will be entitled to the following fixed fees for its property management
services, payable on a monthly basis:
• for investment properties where Single Tenant Triple Net Leases are in place, Homburg
Canada will not receive any property management fees;
• for investment properties situated in Canada or the United States where Single Tenant Triple
Net Leases are not in place, fees will be the lesser of market rates and 5% of all cash receipts
or net revenue (i.e. total basic rent plus expense recoveries) as per the Existing Property
Management Agreement (where the majority are expected to be at 5%);
• for investment properties situated in Europe where Single Tenant Triple Net Leases are not in
place, fees will be the lesser of market rates and 3.5% of annual rents as per the Existing
Property Management Agreement (where the majority are expected to be at 3% or less);
• construction supervision fees equal to 10% of the total (gross, net of taxes) cost of
construction or related construction contracts. Gross costs include the total hard and soft costs
(including interest), but exclude land cost. Homburg Canada will be responsible for all third
party costs for construction management and other related costs; and
• leasing fees equal to 10% of the first year net revenue for leases with a term of less than two
years, 15% of the first year net revenue for leases of three to four years and 20% of the first
year net revenue for leases of five years or longer.
Asset Management Services Fees
As asset manager, Homburg Canada will provide strategic planning, marketing, financial
reporting and public disclosure, advisory and acquisition and disposition services to the Company, the
Partnerships and Homburg Holdings (U.S.) Inc.
Homburg Canada will be entitled to the following fixed fees for its asset management
services, payable on a monthly basis:
• for investment properties situated in Canada or the United States, annual fees of 0.30% of the
total assets base, calculated on a quarterly basis for properties where Single Tenant Triple Net
Leases are in place, and 0.75% of the total asset base, calculated on a quarterly basis, for
properties where Single Tenant Triple Net Leases are not in place;
• for investment properties situated in Europe, annual fees of 0.20% of total asset base,
calculated on a quarterly basis;
• share issue fees of 5% of the total gross proceeds raised in share issues of the Company,
provided that Homburg Canada will assume all costs relating to such share issues (including
selling commissions payable to intermediaries, legal fees, marketing expenses, travel
expenses+ and additional out-of-pocket expenses). No fees are payable by the Company to

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Homburg Canada with respect to shares issued to a vendor of a property acquired by the
Company or private placements to related parties; and
• acquisition and disposition fees of 2.5% of the total acquisition or disposition price of the
relevant property, provided however that, (i) in the context of a series of transactions forming
part of the same transaction, the 2.5% fee is only payable once based on the total acquisition
or disposition price, as the case may be and (ii) Homburg Canada will not be entitled to be
reimbursed for any due diligence or execution costs relating to any acquisitions or
dispositions, whether successful or unsuccessful, including legal, accounting, financial
advisory and brokerage services as well as travel expenses and the cost of obtaining structural,
environmental, title and appraisal reports.
To provide clarity and context on the fees paid to date by Homburg to Homburg Canada, the
following describes the principal terms of the Existing Property Management Agreements and
Existing Assets Management Agreements that have been superseded by the Master Property and
Asset Management Agreement.
Existing Property Management Agreements
The initial terms of the Existing Property Management Agreements are generally 10 years,
with automatic renewal terms specific to each relevant agreement (being of one or five years). In most
cases, subsequent to the initial term expiry, the owner of the relevant property may terminate its
Existing Property Management Agreement prior to the expiration of its extended term by providing
six months’ notice and paying an amount generally equal to 20% of the average total monthly
compensation under the Existing Property Management Agreement multiplied by the number of
months remaining in the extended term, except where termination results from the gross negligence of
Homburg Canada. Homburg Canada may terminate a Existing Property Management Agreement by
providing 12 months’ notice to the owner of the relevant property.
Homburg Canada, in general, is entitled to the following fixed fees for its property
management services, payable either on a monthly or quarterly basis:
• for all investment properties where Single Tenant Triple Net Leases are in place,
Homburg Canada does not receive any property management fees;
• for investment properties situated in Canada or the United States where Single Tenant
Triple Net Leases are not in place, fees are 5% or less of all cash receipts or net asset
value (i.e. total basic rent plus expense recoveries) the majority of which are at 5%;
• for investment properties situated in Europe where Single Tenant Triple Net Leases are
not in place, fees are 3.5% or less of annual rents (the majority of which are at 3% or
less);
In addition to property management fees, the Company pays the following fixed fees for
construction supervision and leasing:
• in certain agreements, construction supervision fees equal to 10% of the total (gross, net
of taxes) cost of construction or related construction contracts. Gross costs include the
total hard and soft costs (including interest), but exclude land costs.
Homburg Canada is responsible for third party costs for construction management and
other related costs, which typically range between 4% and 6% of total construction costs;
and

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• in certain agreements, leasing fees equal to 10% of the first year net revenue for leases
with a term of one to two years, 15% of the first year net revenue for leases of three years
and 20% of the first year net revenue for leases of four years or longer.
For the year ended December 31, 2006, and the three-month period ended March 31, 2007,
the total fees expressed as a percentage of total revenue paid to Homburg Canada under the Existing
Property Management Agreements, excluding construction supervision and leasing fees, as a
percentage of revenues were 1.6% and 1.4% respectively. The Company recovers a majority of
property management fees paid to Homburg Canada in respect of investment properties from its
tenants.
Existing Asset Management Agreements
The initial terms of the Existing Asset Management Agreements are generally 10 years, with
in certain cases automatic renewal terms specific to each relevant agreement. The owner of the
relevant property may terminate its Existing Asset Management Agreement with just cause, without
penalty payments, or in other cases by providing six months’ notice and paying an amount equal to
the asset management fees paid over the previous two years. Homburg Canada may terminate a
Existing Asset Management Agreement by providing either six months’ or 12 months´ notice to the
owner of the relevant property.
Homburg Canada, in general, is entitled to the following fixed fees for its asset management
services, payable either on a monthly or quarterly basis:
• for investment properties situated in Canada or the United States, annual fees ranging
from 0.30% to 0.75% calculated on invested capital based on an average monthly asset
base, except for properties where Single Tenant Triple Net Leases are in place, in which
case the annual fees are 0.30%;
• for investment properties situated in Europe, annual fees of 0.20% calculated on invested
capital based on an average monthly asset base;
• share issue fees of 5% of the total gross proceeds raised in share issues of the Company,
provided that Homburg Canada assumes all costs relating to such share issues (including
legal fees, marketing expenses, travel expenses and additional out-of-pocket expenses);
and
• acquisition and disposition fees of, in general, 2.5% of the total acquisition or disposition
price of the relevant property. Although Homburg Canada is entitled under the Existing
Asset Management Agreements to be reimbursed of out-of-pocket expenses incurred in
connection with an acquisition or disposition of assets, the practice followed by Homburg
Canada has consistently been, and will continue to be under the Master Property and
Asset Management Agreement (see paragraph 13.7 “Related Party Transactions” under
the heading “Agreements with Related Parties—Master Property and Asset Management
Agreement”), to assume all due diligence costs relating to such acquisition or disposition,
including legal, accounting, financial advisory and brokerage services as well as travel
expenses and the cost of obtaining structural, environmental, title and appraisal reports.
Furthermore, Homburg Canada has irrevocably waived its right to claim reimbursement
of such past out-of-pocket expenses. The Company has also never reimbursed Homburg
Canada for any due diligence costs relating to any identified transaction that was not
successful. Homburg Canada will be paid its 2.5% management fee in connection with
the Alexis Nihon Acquisition, but has waived the 2.5% disposition fee it would be
entitled to receive on the completion of the Cominar Sale.

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For both the year ended December 31, 2006 and the three-month period ended March 31,
2007, the total asset management fees paid to Homburg Canada under the Existing Asset Management
Agreements as a percentage of the average invested capital were 0.40%. Furthermore, share issue fees
of approximately $3.5 million and property acquisition or disposal fees of approximately $25.8
million were paid to Homburg Canada in the year ended December 31, 2006, and property acquisition
or disposal fees of approximately $2.0 million were paid to Homburg Canada in the three-month
period ended March 31, 2007, in each case under the Existing Asset Management Agreements. See
paragraph 13.7 “Related Party Transactions” under the heading “Summary of Payments to Related
Parties”.
Pursuant to the Existing Asset Management Agreement entered into with the Company,
Homburg Canada will be entitled to receive 5% of the gross proceeds of the Offering, provided that it
assumes all costs relating to the Offering, including the Underwriters’ fee. Accordingly, the
Underwriters’ fee of 4.5% payable to the Underwriters by the Company pursuant to the Underwriting
Agreement will be deducted from this 5% fee and Homburg Canada will receive only a net fee of
0.5% from the Company which, together with the Underwriters’ fee, will constitute the sole expense
of the Company for the Offering, all other fees and expenses being assumed by Homburg Canada.
In addition to the fees that are payable to Homburg Canada under the Existing Property
Management Agreements and the Existing Asset Management Agreements, and which will become
payable under the Master Property and Asset Management Agreement, the Company also pays to
Homburg Canada and certain other related parties certain additional service fees. See paragraph 13.7
“Related Party Transactions” under the heading “Summary of Payments to Related Parties”.
Limited Partnership Agreements
The General Partner, a subsidiary of Homburg Canada, is the general partner in substantially
all of the Partnerships in which Homburg is a Limited Partner. The Limited Partner(s) are solely
entitled to the profits of the Partnership of which they are a Limited Partner. Except in respect of the
Minority Partnerships, the General Partner is not entitled to any significant compensation. In respect
of the Minority Partnerships (20), (21), (22), (26), (28) and (29), the General Partner is entitled to
30% of the profits (before taxes) that remain after the holders of the limited partnership units have
received a cumulative return of 11% (before taxes) on an annual basis. In respect of the Minority
Partnership (49), the General Partner is entitled to 30% of the profits (before taxes) that remain after
the holders of the limited partnership units have received a cumulative return on equity of 8% (before
taxes) on an annual basis. See Chapter 16 “Organizational Structure” and paragraph 2.1 “Risks
Relating to the Business” under the heading “Reliance on Property and Asset Management
Agreements and General Partner”.
Issuance of Bonds
Historically, the Company has issued bonds as an efficient source of capital to finance its
growth. In 2006, Homburg issued bonds series 8 and series 9 for a total principal amount of
approximately €104 million ($160 million using an exchange rate of 1.54 in effect as at December 31,
2006). Homburg Participaties, a licensed securities dealer in the Netherlands with access to an
important network of retail investors in Europe that is directly and indirectly controlled by Richard
Homburg, acted as intermediary and, for the services rendered to the Company in connection with the
issuance of bonds series 8 and series 9 received a fee of $5.9 million, which is the equivalent of 4% of
the principal amount of those bonds. Through ShareCo, the Company has issued six series of
mortgage bonds. Homburg Participaties acted as intermediary and, for the services rendered to the
Company, received a fee of 5% of the gross proceeds for mortgage bonds series 1 and 2 and 4% of the
gross proceeds for each of the remaining bond issues. In 2005, the Company paid a fee of $3.7 million
to Homburg Participaties in respect of the issuance of the mortgage bonds series 6 and 7, which
totalled approximately €62million ($96 using an exchange rate of 1.54 in effect as at December 31,
2006) , compared to a fee of $2.6 million paid in 2004 in respect of the issuance of the mortgage

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bonds series 4 and 5, totalling approximately €40 million ($62 using an exchange rate of 1.54 in effect
as at December 31, 2006).
Given the size of the Company and intended use of proceeds of acquiring and developing real
estate in Canada at the time of issuing bonds series 1 to 7, the Company entered into a guarantee
arrangement with Uni-Insurance Inc., a company directly and indirectly controlled by Mr. Homburg,
for the principal amounts of each of the mortgage bonds to maturity, pursuant to which the Company
is protected against fluctuations in the Canadian dollar and the euro, to a maximum limit equal to the
face value of each mortgage bond. The cost of this guarantee fee per annum until maturity is 1.5% on
the mortgage bonds series 1, 2.0% on the mortgage bonds series 2 and 1.6% on the mortgage bonds
series 4, series 5, series 6 and series 7. The Company has not used the guarantee for bonds Series 8, 9
as the proceeds of these issues were used to make acquisitions in Europe. Similarly, it is expected that
the Company will also not seek a guarantee for bonds series 10 (see paragraph 14.2 “Other Recent
Developments” under the heading “Issuance of Bonds Series 10”).
Insurance
Homburg Insurance Company Limited, a company directly and indirectly controlled by
Richard Homburg, acts as the Company’s broker for certain insurance. The total fees paid to
Homburg Insurance Company Limited , including the cost of the premium paid through Homburg
Insurance Company Limited, amounted to $700,000 in 2006, compared to $796,000 in 2005.
Other Related Party Transactions
The management of the Confederation Court Complex in Charlottetown, Prince Edward
Island, is subcontracted by Homburg Canada to a company owned by Michael H. Arnold, the Vice
Chairman of the Company. The total fees paid to this company amounted to $314,000 in 2006 and
$254,000 in 2005.
Further, since March 1, 2006, Stollburgh Capital B.V., a company controlled by Richard
Homburg and J. Richard Stolle, President and Chief Operating Officer of Homburg, occasionally
performs asset management services in respect of certain opportunities as subcontractor of Homburg
Canada. On December 1, 2006, the Company acquired four investment properties from Stollburgh
Capital B.V. for total consideration of approximately $61 million. The Board of Directors
unanimously approved the acquisition based in part on the recommendation of an independent
committee of the Board of Directors comprised of two independent directors formed to consider the
acquisition and to determine whether the consideration paid by Homburg was fair and whether the
acquisition was in the best interest of Homburg.
The fees payable to the above subcontractors are paid by Homburg Canada N.V. and do not
have the effect of increasing the fees payable by the Company to Homburg pursuant to the Existing
Property Management Agreements and Asset Management Agreements.
Summary of Payments to Related Parties
Set forth below is a table summarizing the various revenues and expenses between related
parties in respect of the three-month period ended March 31, 2007 and the financial years ended
December 31, 2006 and 2005.

Note:
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(1) The service fees incurred relate to operating costs such as fuel, advertising, repairs and wages. A portion of these
service fees are paid to a company owned by Michael H. Arnold, Vice Chairman of the Company. Such fees
amounted to $51,000 for the three-month period ended March 31, 2007, $314,000 for the year ended December 31, 2006
and $254,000 for the year ended December 31, 2005. The remainder of these service fees were paid to Homburg
Canada.
The total amount paid to related parties for services rendered amounted to $7.4 million for the
three-month period ended March 31, 2007, $52.4 million for the year ended December 31, 2006 and
$34.1 million for the year ended December 31, 2005. Management is of the view that the fees it pays
to related parties are based on competitive rates in the relevant markets.
Non-Competition Agreement
At the closing of the Offering, the Homburg Parties have entered into the Non-Competition
Agreement with Homburg, which restricts certain investments in real estate by any of the Homburg
Parties.
Except for properties currently held by the Homburg Parties (see Paragraph 10.5 “Activities”
under the heading “Management of Real Estate”), each of the Homburg Parties will be prohibited
from directly or indirectly investing in or developing office, retail, residential, industrial or mixed-use
investment properties, other than by way of equity investment into publicly traded companies,
provided that each such investment is limited to 10% of the voting rights attached to the securities of
any such publicly traded company, unless the Company has been offered such investment in
accordance with the terms of the Non-Competition Agreement. If the Company refuses an investment
offered to it in accordance with the terms of the Non-Competition Agreement, the Homburg Party
having presented the investment shall have the right to make such investment on terms not more
favourable to it than those offered to the Company within six months from such refusal, after which
such investment must again be offered to the Company in accordance with the terms of the Non-
Competition Agreement before it can be completed by any Homburg party. The restrictions in the
Non-Competition Agreement will apply to all investment properties located in Canada, Europe and
the United States.

14. RECENT DEVELOPMENTS
14.1 The Alexis Nihon Acquisition
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The Company believes that attractive opportunities currently exist in the Montréal, Québec
real estate market. In the fourth quarter of 2006, Homburg identified the Alexis Nihon retail properties
and Place Alexis Nihon as quality real estate in strong locations. In addition, Management believes
that there is potential for increasing returns on, as well as net operating income from, those properties
through revenue enhancing capital expenditures. On February 27, 2007, Homburg Acquisition, a
wholly-owned Subsidiary of the Company, made the Offer for Alexis Nihon other than the units held
by Homburg Acquisition and its affiliates to purchase all of the units of Alexis Nihon at a price of
$18.60 in cash per unit.
On April 6, 2007, Homburg announced that Homburg Acquisition had taken up 20,663,699
units of Alexis Nihon, representing approximately 70% of the issued and outstanding units, under the
Offer for Alexis Nihon. Homburg Acquisition paid for such units on April 11, 2007 and further to the
completion of the Alexis Nihon Capital Reorganization, now owns 100% of the issued and
outstanding units of Alexis Nihon. On May 24, 2007, Alexis Nihon announced the completion of the
Alexis Nihon Acquisition through the Alexis Nihon Capital Reorganization, which was approved at a
special meeting of the unitholders of Alexis Nihon held on May 17, 2007.
On June 5, 2007, Homburg and Alexis Nihon announced that they closed the Cominar Sale
(excluding the sale of the Alexis Nihon Co-Owned Properties) effective on June 1, 2007, subject to
customary property registrations to be completed shortly following the closing, pursuant to which
Alexis Nihon sold the Alexis Nihon Industrial and Office Properties (other than the Alexis Nihon Co-
Owned Properties) to Cominar for $575 million, including the assumption of $238 million of debt
relating to those properties. Pursuant to the Cominar Asset Sale Agreement, Cominar has also
unconditionally offered to purchase Alexis Nihon’s interest in the Alexis Nihon Co-Owned Properties
for a purchase price of approximately $17.3 million, including the assumption of approximately $3.2
million of debt relating to those properties, subject to the exercise or waiver by the co-owner of such
properties of its rights of first refusal. See Chapter 11 “Property Portfolio” paragraph 11.2
“Investment Properties” and paragraph 11.4 “Description of the Company’s Most Significant
Investment Properties” for more information on the properties of Alexis Nihon retained by Homburg,
consisting of Place Alexis Nihon (including the office and residential components) and the retail
properties of Alexis Nihon.
The acquisition of a majority of the units of Alexis Nihon constitutes a “significant gross
change for Homburg within the meaning of Commission Regulation 809/2004. As such, this
Prospectus includes a description of the acquisition including historical and pro forma financial
statements. The historical financial statements include a schedule of selected financial information
with respect to the properties acquired by Homburg pursuant the Alexis Nihon Acquisition and that
are being retained by it pursuant to the Cominar Sale. The pro forma adjustments contained in the
unaudited pro forma combined financial statements included in this Prospectus are based upon the
assumptions described in the notes to such unaudited pro forma combined financial statements, and
provide the following information: (i) pro forma combined financial information of Homburg, giving
effect to the Alexis Nihon Acquisition and the Cominar Sale, (ii) pro forma adjustments for the
Offering (assuming the exchange of the subscription receipts for Class A Shares) and (iii) pro forma
combined financial information of Homburg, giving effect to the Alexis Nihon Acquisition, the
Cominar Sale and the Offering. The unaudited pro forma combined financial statements are presented
for illustrative purposes only and are not necessarily indicative of the operating or financial results
that would have occurred had the acquisition actually occurred at the times contemplated by the notes
to the unaudited pro forma combined financial statements, the pro forma effect of the use of the net
proceeds of this Offering or of the results expected in future periods.

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The loss in net earnings as shown on the pro forma statement of earnings is primarily caused
by the inclusion of a full year of interest expense on the acquisition related Bridge Loan. The pro
forma adjustments related to the Offering will include a reduction in the interest expense related to
applying the proceeds from the Offering against the acquisition related Bridge Loan. In addition, the
pro forma statements have not incorporated any synergies or other possible savings or benefits that the
Company would expect to realize from the combination of the operations of Alexis Nihon into the
Company. The Company does not anticipate that the continued operations will result in a loss of net
earnings to the Company.
See Chapter 15 “The Alexis Nihon Acquisition” for further details about Alexis Nihon, the
Alexis Nihon Acquisition and the Cominar Sale.
14.2 Other Recent Developments
In addition to the Offer for Alexis Nihon, the Company continues to pursue its growth plan
and to raise capital in support of that growth plan. Some additional recent developments include the
following:
Acquisition of an Office Property in the Netherlands
• On June 5, 2007, the Company completed the acquisition of an office property in
Amstelveen, the Netherlands. Total consideration for the acquisition including acquisition
costs was approximately €39 million resulting in a Capitalization Rate of approximately
6.6%, and was financed with debt of approximately €30.0 million and cash of approximately
€9 million. The property is a multi tenant office complex with a total leasable area of 133,214
square feet.
Acquisition of an Industrial Property in the Netherlands
• On May 2, 2007, the Company announced that it completed the acquisition of an industrial
property with office space in Beuningen, the Netherlands. Total consideration for the
acquisition was €9.2 million resulting in a Capitalization Rate of 7.6%, and was financed with
debt of approximately €7.5 million, the issuance to the vendor of 284,210 Class A Shares in
an amount of approximately €1.2 million and cash of approximately €0.5 million. The
property consists of free standing industrial premises with office space situated on
approximately 10.4 acres with a total leasable area of 164,710 square feet.
Acquisition of SEB Group Property Portfolio in the Baltics (announced in April 2007)
• On April 26, 2007, the Company announced that it entered into a framework agreement to
purchase from SEB Group, a North European financial group listed on the Stockholm Stock
Exchange with total reported assets of €216 billion, a market capitalization of €13.9 billion
and an A long term credit rating by Standard&Poor’s as of October 2006, of 63 properties
located in the three Baltic countries of Estonia, Latvia and Lithuania for a total purchase price
of €197 million resulting in a Capitalization Rate of 5.2%. The properties to be acquired
consist of a sale and leaseback portfolio of 47 properties of which SEB Group will lease the
entire gross leasable area for an initial term of approximately 9.6 years and a commercial
portfolio of 16 properties which are primarily leased to tenants other than SEB Group. Total
lease revenue from SEB Group will be approximately $18 million per year, which would
make SEB Group the second largest tenant of the Company by property revenue.
The sale and leaseback portfolio consists principally of office properties (including branches
and offices of SEB Group), encompasses a total leasable area of approximately 816,291
square feet and includes 13 properties in Estonia, 22 properties in Latvia and 12 properties in
Lithuania. The commercial portfolio includes two properties in Estonia and 14 properties in
Lithuania, and encompasses commercial space having a gross leasable area of 343,356 square

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feet. The commercial portfolio provides Homburg with the opportunity to capitalize on the
growing economy of the Baltics and resulting demand for commercial space.
The Company paid a deposit of €3 million to be applied as down payment on the purchase
price. The acquisition of each property is subject to conditions precedent relating to, among
other things, the non-exercise of preemptive rights of third parties, the filing of relevant
applications to obtain proper registrations in the public title books and the obtaining of
necessary regulatory approvals, including from the competition authorities in Estonia, Latvia
and Lithuania. If a pre-emptive right is exercised on any property, only such property(ies) will
be removed from the sold portfolio and the purchase price will be reduced accordingly. In
respect of the acquisition of a property for which the conditions precedent have not been
satisfied and the closing has not taken place on or before December 31, 2007, either party is
entitled to terminate the sale and purchase agreement and, where applicable, the lease
agreement relating to such property and neither party shall be entitled to any compensation as
a result of such cancellation.
The transaction will be structured as share or asset purchases, as applicable depending on the
circumstances of each acquired property, and will be financed with the proceeds of the
issuance of bonds series 10 (see “Issuance of Bonds Series 10”, below) as well as up to a
maximum of €150 million of debt financing from SEB Group up to a maximum amount of
€150 million at a spread of 0.80% and 1.2% over the Euribor rate (the three-month Euribor
rate as of May 3, 2007 was 4.036%) in respect of the sale and leaseback portfolio and
commercial portfolio respectively. The Company has completed due diligence on the
acquisition, including a thorough review of technical and environmental reports made
available by SEB Group for substantially all of the assets.
Homburg has identified the Baltic Region as an emerging market with a strong and growing
economy. In keeping with Homburg’s strategy of providing stability and growth to investors,
Homburg is attracted to the portfolio as it consists of a combination of long term leases to
SEB Group and commercial assets with growth potential. In addition, the sale and leaseback
portfolio includes leases that provide revenue growth through indexation to the national
inflation index.
Joint Venture with Cedar Shopping Center (announced in April 2007)
• On April 2, 2007, the Company announced that its Subsidiary, Homburg Holdings (U.S.)
Inc., has entered into the Cedar Joint Venture Agreement, as a joint venture partner to own,
through various limited partnerships, nine shopping centres. The properties, valued at
approximately U.S.$170 million, involve eight shopping centres in Pennsylvania, including
the ground-up shopping centre development recently completed by Cedar Shopping Centers
in Hershey, Pennsylvania, and one shopping centre in Massachussets. Homburg Holdings
(U.S.) Inc. will acquire an 80% interest in the joint venture and Cedar Shopping Centers, Inc.
(or affiliates thereof) will acquire the remaining 20% interest and will remain as the manager
of the properties. The Company has completed due diligence on the acquisition of its joint
venture interest, including a thorough review of phase I environmental reports obtained from
Cedar Shopping Centers. At each closing of the acquisition of one or more of the nine
shopping centres subject to the joint venture, Cedar Shopping Centers shall pay to Homburg
Holdings (U.S.) Inc. (or credit against the net consideration payable by Homburg (U.S.) Inc.)
an amount equal to 1.5% of the product of 60% and the net consideration payable by
Homburg Holdings (U.S.) Inc. at such closing. Notwithstanding its initial 80% interest in the
joint venture, Homburg Holdings (U.S.) Inc. has an option under the Cedar Joint Venture
Agreement to subsequently transfer up to 75% of its interest in the joint venture (60% of the
total joint venture) to a Delaware partnership, the limited partners of which shall be non-U.S.
investors and the general partner, Homburg Participaties B.V. or an affiliate thereof. Upon
such transfer of interests, provided it occurs on or before December 31, 2007, Cedar Shopping
Centers shall pay to Homburg Holdings (U.S.) Inc. an additional marketing fee of 1.5% of the

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product of (i) the net consideration initially paid by Homburg Holdings (U.S.) Inc. to Cedar
Shopping Centers for its 80% interest in the joint venture and (ii) the percentage of such
interest that shall have been assigned by Homburg Holdings (U.S.) Inc., at such time. Neither
Homburg Canada nor Homburg Participaties B.V. will receive a fee on such transfer of
interest.
The acquisition of the properties is subject to certain closing conditions which may or may
not be satisfied. Subject to the right of Cedar Shopping Centers to postpone the closing of the
acquisition of a property or to remove such property from the list of properties being
transferred from Cedar Shopping Centers under the Cedar Joint Venture Agreement, such
agreement shall automatically terminate on September 28, 2007 in the event that all of the
conditions precedent with respect to any acquisition of the properties shall not have been
satisfied prior to such date.
Issuance of Bonds Series 10 (announced in January 2007)
• In February 2007, the Company received regulatory approval from the AFM for the
prospectus relating to the issue of bonds series 10, which will be issued for a maximum value
of €100 million on an unsecured basis and bearing an annual interest rate of 7.25% to be paid
on a semi-annual basis. The bonds are currently being settled via cash receipts in the
Netherlands. As at June 4, 2007, €78.9 million have been settled with purchasers. The
proceeds from the issue will be used for general corporate purposes and for future acquisitions
in Europe, including the acquisition of 63 properties from SEB Group (see “Acquisition of
SEB Group Property Portfolio in the Baltics” above).
Acquisition of Five Properties in the Netherlands (announced in February 2007)
• In February 2007, the Company completed the acquisition of five commercial properties in
the Netherlands for a total purchase price of approximately €24 million resulting in a
Capitalization Rate of 8.5%). The transaction was financed by way of long term debt
financing of €19 million at a weighted average interest rate of 4.98% cash and the issuance to
the vendor of Class A Shares in an amount of approximately $7 million. The properties are
located in Venlo, Eindhoven, Gouda and Roermond (two properties) in the Netherlands.
These properties provide a total of approximately 173,000 square feet of quality office space.
Purchase of 62 Residential Rental Units in Fort McMurray, Alberta (announced in February
2007)
• In February, 2007, the Company entered into an agreement to purchase 62 residential rental
units in Fort McMurray, Alberta. Total consideration for the acquisition was $25 million
resulting in a Capitalization Rate of 6.4%, and was financed with mortgage financing of
approximately $14.2 million at a weighted average interest rate of 5.92% and the issuance to
the vendor of Class A Shares in an amount of approximately $10.8 million. The acquisition
closed in March 2007. The Company entered into a lease with the vendor for all 62 units
which will be used by its employees.
Sale of Development Assets (announced in January 2007)
• As a result of very favourable market conditions in the Alberta marketplace, the Company
announced its intention to sell approximately $500 million of properties various assets
currently under construction. Management expects that the pre-tax gain on the sale of these
properties will be approximately $150 million. The sale of a majority of these properties is
expected to close in the second quarter of 2007.

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Private Placement of Class A Shares (announced in January 2007)
• In January 2007, the Company completed a private placement of 6,368,164 Class A Shares
for total proceeds of approximately $32.6 million with a company controlled by Richard
Homburg. The transaction is detailed in Chapter 37 “MD&A”, under heading “Transactions
with Related Parties”, sub j.
Acquisition of Land in Calgary, Alberta (announced in January 2007)
• In January 2007, the Company entered into an agreement to acquire the Henderson Farms
property, a 38-acre parcel of land for future development in Calgary, Alberta for
approximately $15.3 million. The purchase price was satisfied through the assumption of debt
of approximately $7.5 million, cash of approximately $5.5 million and the issuance to the
vendor of Class A Shares in an amount of approximately $2.4 million. The acquisition closed
in February 2007.

15. THE ALEXIS NIHON ACQUISITION
15.1 Overview
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See paragraph 14.1 (“Recent Developments – The Alexis Nihon Acquisition”) for an
overview of the Offer for Alexis Nihon and the Cominar Sale.
Effective at the close of markets on May 23, 2007, the units of Alexis Nihon were delisted
from the TSX and Alexis Nihon will apply to cease to be a reporting issuer under the securities laws
of each such province.
The Support Agreement (under which Alexis Nihon agreed to support Homburg’s offer to
purchase all of the units of Alexis Nihon) and the Cominar Asset Sale Agreement (described in
paragraph 15.2) were filed by Homburg with the Canadian securities regulatory authorities, and are
available electronically on SEDAR at www.sedar.com. Copies of the documents may be obtained on
request without charge from the Secretary of Homburg Invest Inc. at Suite 600, 1741 Brunswick
Street, Halifax, Nova Scotia, B3J 3X8 (telephone: +1 902 468-3395).
The Management Information Circular relating to the special meeting of unitholders of Alexis
Nihon is available electronically on SEDAR at www.sedar.com.
15.2 Cominar Sale
Purchase Price and Consideration
Pursuant to the Cominar Asset Sale Agreement, Alexis Nihon sold to Cominar the Alexis
Nihon Office and Industrial Properties (other than the Alexis Nihon Co-Owned Properties) for an
aggregate purchase price of $575 million resulting in a Capitalization Rate of 6.8%. Such purchase
price will be satisfied by a cash payment of $337 million, and by the assumption by Cominar of the
outstanding principal balance under the terms of the existing mortgage financings in respect of such
properties for a total amount of approximately $238 million at a weighted average interest rate of
5.6%, and by a cash payment for the remaining amount. The cash proceeds will be disbursed to
Homburg once title to such properties has been registered.
Pursuant to the Cominar Asset Sale Agreement, Cominar has also unconditionally offered to
purchase Alexis Nihon’s interest in the Alexis Nihon Co-Owned Properties for a purchase price of
approximately $17.3 million, including the assumption of approximately $3.2 million of debt relating
to those properties, subject to the exercise or waiver by the co-owner of such properties of its rights of
first refusal.
Additional Agreements
Homburg and Cominar will enter into a transitional services agreement to facilitate the
transition of the employees of Alexis Nihon and of the operations of the Alexis Nihon Office and
Industrial Properties to Cominar. Homburg and Cominar will also enter into an agreement pursuant to
which they will continue the employment of the various employees of Alexis Nihon following the
closing of the Cominar Sale on the basis that the employees engaged principally in the operation,
management, leasing or development of industrial and/or office properties forming part of Alexis
Nihon Office and Industrial Properties will continue to be employed by Cominar and the remainder of
such employees will continue to be employed by Alexis Nihon.

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15.3 Description of the Business of Alexis Nihon
Overview
Alexis Nihon is an unincorporated closed-end investment trust created by a contract of trust
dated October 18, 2002, as amended and restated as of December 13, 2002 and as of May 15, 2006
and governed by the laws of the Province of Québec.
Alexis Nihon was established to continue and expand the commercial real estate activities
formerly carried on by the Nihon/Massicotte Group (other than the construction and development
activities), which was formed in the late 1940s and which, since 1980, has been engaged in acquiring,
developing, redeveloping, renovating, owning, managing and leasing properties primarily in the
Greater Montréal Area.
Alexis Nihon began its activities on December 20, 2002, at the time of the completion of its
initial public offering, when it acquired the 18 initial properties of Alexis Nihon and related assets
from certain members of the Nihon/Massicotte Group, as described in the prospectus of Alexis Nihon
dated December 13, 2002. The employees of certain members of the Nihon/Massicotte Group relating
to the property and asset management of such properties acquired were transferred to Alexis Nihon
and Alexis Nihon Management (Canada) Inc. as and from January 1, 2003 in connection with such
acquisition and the initial public offering of Alexis Nihon.
The properties of Alexis Nihon currently comprises 20 office, 10 retail and 35 industrial
properties including an interest in seven co-owned properties, as well as a 426 unit multi-family
residential property, all located in the Greater Montréal Area and the National Capital Region, and
representing, in the aggregate, approximately 9.1 million square feet of leasable area, of which 0.4
million square feet are co-owned.
Alexis Nihon, directly and indirectly through Alexis Nihon Management (Canada) Inc., has
approximately 166 employees.
The head office of Alexis Nihon is located at 3400 de Maisonneuve Boulevard West, Suite
1010, Montréal, Québec, H3Z 3B8.
Properties of Alexis Nihon
The properties of Alexis Nihon consist of approximately 2.99 million square feet of office
space, 1.6 million square feet of retail space, 4.2 million square feet of industrial space and 0.3 million
square feet (426 units) of multi-family residential space, representing, in total, approximately 9.1
million square feet of leasable area of which 0.4 million square feet are co-owned. A majority of the
properties of Alexis Nihon are situated in prime locations near major traffic arteries and benefit from
high visibility and easy access by both tenants and tenants’ customers. While the properties of Alexis
Nihon located at 1080 Beaver Hall Hill and 4700 de la Savane and part of the site of Centre Laval are
subject to emphyteutic leases with unrelated parties, Management believes that the term to maturity
and other terms and conditions of the emphyteutic leases are acceptable. The properties of Alexis
Nihon are generally well-maintained and in good operating condition. See “Property Portfolio –
Investment Properties” and “Property Portfolio – Description of the Company’s Most Significant
Investment Properties” for information on the Place Alexis Nihon and the retail properties of Alexis
Nihon retained by Homburg following the Cominar Sale.
15.4 Financing
Homburg has paid approximately $556 million plus acquisition costs to complete the Alexis
Nihon Acquisition. The total mortgage debt outstanding as at March 31, 2007 was $413.1 million at a
weighted average interest rate of 6.0%. Following completion of the Cominar Sale, the Company is

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retaining a portfolio with a fair market value of approximately $483 million, resulting in a
Capitalization Rate of 6.6%. In addition, the Company is retaining $163 million of mortgage
financing at a weighted average interest rate of 6.4%.
On April 4, 2007, Homburg Acquisition entered into the Credit Agreement with an affiliate of
BMO Nesbitt Burns Inc. to fund the Alexis Nihon Acquisition. The Credit Agreement provides for the
$550 million Bridge Loans, available for multiple draws for a period of up to 120 days after the initial
borrowing and repayable in full not later than 12 months after the closing of the financing. As at June
4, 2007, approximately $463 million was outstanding under the Bridge Loans. Amounts outstanding
under the Credit Agreement bear interest at varying rates depending upon, among other things, the
facility and timing. Amounts may be advanced, at the election of the borrower, as either: (i) prime rate
advances at interest rates ranging from prime rate plus 1.5% to 3.0%, or (ii) bankers’ acceptances
utilizations at varying rates equal to the applicable bankers’ acceptances rate plus 2.5% to 3.5%.
Principal amounts outstanding under the Credit Agreement may be repaid or prepaid at any time
without penalty or bonus, subject to normal breakage costs and certain other conditions if the
prepayment occurs prior to completion of the Alexis Nihon Acquisition.
The Company will use the net proceeds of this Offering to repay all or a portion of the Bridge
Loans (see Chapter 22 “Use of Proceeds of the New Shares”). The balance of the Bridge Loan will be
repaid through one or more debt or equity capital markets transactions and/or through assets sales,
including the Cominar Sale, the recently announced sale of development assets in Alberta for a pretax
gain of approximately $150 million which is expected to close in the second quarter of 2007 (see
paragraph 14.2 “Other Recent Developments” under the heading “Sale of Development Assets”) and
property level debt refinancing. The obligations of Homburg Acquisition under the Bridge Loans are
guaranteed by Homburg and certain identified Subsidiaries.
The lender under the Credit Agreement is entitled to (i) security interests over certain
identified assets of Alexis Nihon, (ii) a pledge on the units of Alexis Nihon, and (iii) a pledge on the
equity interests issued by certain identified Subsidiaries of Homburg. The Credit Agreement contains
covenants, events of default and other terms customary for credit facilities of this nature, including
certain restrictions on incurring liens on its property, assets and undertakings, as well as restrictions
on dividends, distributions and on incurring additional indebtedness.

16. ORGANIZATIONAL STRUCTURE
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A majority of the Company’s real estate assets are currently held through the Partnerships.
Each of the Partnerships was formed under the laws of Nova Scotia and is named Homco Realty Fund
(#) Limited Partnership and has been established to acquire one or more specific real estate assets.
Each Partnership has a general partner who is responsible for managing the Partnership and one or
more Limited Partners who provide equity in return for limited partnership units. The General Partner
for substantially all of the Partnerships is Homburg LP Management Incorporated, Suite 200, 11
Akerley Boulevard, Halifax Regional Municipality, Nova Scotia, B3B 1V7. The General Partner is
controlled directly and indirectly by Richard Homburg. See paragraph 2.1 “Risks Relating to the
Business” under the heading “Reliance on Richard Homburg”.
The Partnership structure is used for several reasons. Primarily, it permits Homburg to obtain
first mortgage financing without providing, in most cases, general corporate guarantees as each asset
is treated as a standalone entity. In addition, the purchase or sale of limited partnership units provides
a measure of financial reporting discipline as each Partnership is accounted for as a standalone entity.
The structure allows all of the entities to be consolidated for Canadian tax purposes.
The Limited Partners are entitled to the profits and, in the event of a liquidation of the
Partnerships, to the liquidation proceeds. The Limited Partners of each Partnership could therefore be
qualified as the beneficial owners of the property owned by such Partnership. Homburg is the sole
Limited Partner of all the Partnerships, except for the Minority Partnerships, in which the Company
holds a minority interest. The profits of the Minority Partnerships (except Partnerships (49)) are
allocated between the General Partner and the Limited Partners. For all Minority Partnerships other
than Partnerships (49), the General Partner is entitled to 30% of the profits (before taxes) that remain
after the Limited Partners have received a minimum cumulative annual return of 11% (before taxes).
For Minority Partnerships (49), the General Partner is entitled to 30% of the profits (before taxes) that
remain after the Limited Partners have received a minimum cumulative annual return of 8% (before
taxes). As at June 4, 2007, Homburg was the sole Limited Partner in 86 Partnerships and had interests
ranging from 5% to 55% in the 8 Minority Partnerships.
Pursuant to the limited partnership agreements relating to the Partnerships, the General
Partner, except in the case of the Minority Partnerships, is not entitled to the profits of the
Partnerships. The General Partner has full power and authority to transact the business of the
Partnerships and to deal with the assets for the use and benefit of the Partnerships. For these purposes,
the General Partner has sole, complete and unfettered power and authority to manage and carry on the
business of the Partnerships and to do all things required in connection with the Partnership including,
but not limited to, acquiring and disposing of real property, mortgaging and charging real property,
contracting for service, banking, appointing auditors, making capital distributions and selling or
acquiring limited partnership units. The Limited Partners cannot direct the General Partner, and can
only remove it as general partner of a given Partnership upon its bankruptcy or default under the
applicable limited partnership agreement. Except for the removal of the General Partner in the
circumstances described above and the appointment of a new general partner, the Limited Partners
shall have no right to direct the General Partner to implement any decision of the Limited Partners
without the consent of the General Partner. The limited partnership agreement for a Partnership does
not allow the Limited Partners to remove the General Partner except upon its bankruptcy or default
under the applicable limited partnership agreement. In order for the Limited Partners of a Partnership
to remove the General Partner in other circumstances, they must first amend the applicable limited
partnership agreement. The limited partnership agreement of a Partnership may be amended to change
any of the foregoing provisions, including the provision which limits the circumstances under which
the General Partner can be removed as general partner of the Partnership, by resolution passed at a
meeting of unitholders of the Partnership provided such resolution is approved by a vote of persons,
owning or representing in person or by proxy a minimum of 70% of all units of the Partnership,
present or represented and entitled to vote at the meeting in favour of such amendment. The

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holders of 25% or more of the units of a Partnership may cause the General Partner to call a meeting
of unitholders of a Partnership. Except for the Minority Partnerships, Homburg controls 99% of the
voting rights attached to the units of each Partnership.
In each case, the General Partner has entered into Existing Property Management Agreements
and Existing Asset Management Agreements, which has been replaced by the Master Property and
Asset Management Agreement, on behalf of each Partnership with Homburg Canada. Under these
agreements, Homburg Canada provides property management and asset management services to the
Partnerships. These services include general property management services, as well as strategic
planning and marketing, advising on the purchase and sale of properties and managing financing.
Homburg Canada receives management fees for providing these services. See “Management of
Homburg - Related Party Transactions – Agreements with Related Parties”.
In addition to the property management and asset management services that Homburg Canada
provides to the Partnerships, Homburg Canada also provides management services to the Company
for the properties that Homburg owns directly and to Homburg Holdings (U.S.) Inc. in respect of the
U.S. properties. Homburg Canada also provides management and property management services to a
majority of the Minority Partnerships.
Homburg owns 100% of the economic interest, or its pro rata portion thereof, in the business
carried on by each Partnership, as all of the profits and losses in the Partnership are allocated to the
limited partnership units held by Homburg. The General Partner determines when any capital
contributions may be returned to Homburg.
Subsidiaries
In addition to the Partnerships, as described above, the Company has the following direct
Subsidiaries as at June 4, 2007:
• Development companies. Homburg owns, directly or indirectly, 100% of 11 real estate
development companies.
• Homburg (U.S.) Incorporated. The Company owns 100% of the issued and outstanding
shares of
Homburg (U.S.) Incorporated, a Nova Scotia company. Homburg (U.S.) Incorporated is the
parent company of Homburg Holdings (U.S.) Inc., a company incorporated under the laws of
the State of Colorado, which owns 11 properties in Texas and Colorado.
• Homburg ShareCo Inc. Homburg owns 100% of the issued and outstanding shares of
ShareCo, a Nova Scotia company. ShareCo raises capital for Homburg through the issue of
bonds in the European market. All mortgage bonds are secured by a first or second charge
over specific assets of one or more Partnerships, a guarantee by the Company for the benefit
of the holders of the mortgage bonds and, in most cases, a guarantee by one or more
Partnerships and, in some cases, an assignment of the limited partnership units. As at March
31, 2007, six series of mortgage bonds had been issued in the aggregate principal amount of
approximately $224 million. When the proceeds of the mortgage bonds are received by
ShareCo, they are loaned up to the Company at the cost of borrowing plus 25 basis points,
except for the mortgage bond series 1, the proceeds of which ShareCo invested directly in the
relevant Partnership. Homburg uses the proceeds of the mortgage bonds to invest in
Partnership units. These investments form the equity base for each of the Partnerships.
• Homburg Invest USA Limited. The Company owns 100% of the issued and outstanding shares
of Homburg Invest USA Limited, a Nova Scotia company, which holds part of the
Company’s investment in Cedar Shopping Centers. See paragraph 10.5 “Activities” under the
heading Strategic Investments and Divestitures” and paragraph 14.2 “Other Recent
Developments” under the heading “Joint Venture with Cedar Shopping Centers”.

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• Homburg Holding (NETH) Beheer B.V. Homburg owns 100% of the issued and outstanding
shares of Homburg Holding (NETH) Beheer B.V., which controls, through Partex East B.V.
and Partex West B.V., approximately 23% of the voting rights of DIM Vastgoed N.V., a
public Dutch real estate investment company with retail shopping centre assets in the South
Eastern United States. See paragraph 10.5 “Activities” under the heading “Strategic
Investments and Divestitures”.
• Homburg Acquisition Inc. Homburg owns 100% of the issued and outstanding shares of
Homburg Acquisition, a company incorporated under the ABCA on February 26, 2007.
Homburg Acquisition carries on no business other than through Alexis Nihon. Homburg
Acquisition paid for the units of Alexis Nihon it acquired pursuant to the Offer for Alexis
Nihon on April 11, 2007 and, together with the units that it owned prior to the Offer for
Alexis Nihon, currently owns 100% of the outstanding units of Alexis Nihon. See paragraph
14.1 “Recent Developments – The Alexis Nihon Acquisition” and Chapter 15 “The Alexis
Nihon Acquisition”.
The following chart illustrates on a simplified basis the structure of the Company (including the
jurisdictions of establishment/incorporation of various entities).

Notes:
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(1) The General Partner is controlled directly and indirectly by Richard Homburg, the Chairman and Chief Executive Officer of the
Company. It is the general partner of all Limited Partnerships except for Viger Limited Partnership (the general partner of which
is 4348931 Canada Inc. a corporation that is 50% held by the Company) and 333 Sherbrooke Street East (the general partner of
which is 9129-8190 Québec Inc. a corporation that is 50% held by the Company).
(2) Homburg Canada is controlled indirectly by Richard Homburg, the Chairman and Chief Executive Officer of the Company.
(3) Almost all of the real estate assets owned directly or indirectly by the Company are managed by Homburg Canada pursuant to the
Existing Property Management Agreements and the Existing Asset Management Agreements, which has been replaced by the
Master Property and Asset Management Agreement . See “Management of Homburg — Related Party Transactions —
Agreements with Related Parties” for more details on Homburg Canada and the services it provides.
17. DEBT OVERVIEW
The Company employs a combination of debt financing sources, including secured and
unsecured debt as well as fixed and variable rate structures over various terms. These debt financing
sources are available in various international markets, and when considering its alternatives, the

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Company takes into account not only the availability of financing and respective market conditions,
but also their overall capital structure and the financial characteristics of each property (where
property-specific debt is employed).
The table below sets forth the Company’s total debt outstanding as at March 31, 2007 and
December 31 for the years ending 2006, 2005 and 2004.
Given the potential exposure to rising interest rates in the Company’s variable rate debt
financing, the Company may from time to time enter into interest rate swaps or other hedging
instruments to fix the amount of interest paid by the Company on its variable rate debt in order to
reduce its exposure to variable interest rates fluctuation at any particular point in time. See paragraph
13.7 “Related Party Transactions” under the heading “Agreements with Related Parties – Issuance of
Bonds” and Chapter 37 “MD&A” under the heading “Capital Structure – Derivative Instrument
Liability”.
The Company does not acquire, hold or issue derivative financial instruments for trading
purposes.
Secured Debt
Mortgages Payable – Mortgages payable are secured by a pledge of specific investment
properties and an assignment of specific rents receivable, with maturity dates between 2007 and 2020.

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Mortgage Bonds Payable - The mortgage bonds payable consist of seven-year bonds, issued
in series and secured by a first or second charge over specific assets and a guarantee from Homburg.
The mortgage bonds mature between December 2009 and June 2012 and the company has the option
to redeem any series of mortgage bonds at their principal amount at any time subsequent to the fifth
anniversary of the issue of the mortgage bonds. The interest is payable semi-annually on June 30 and
December 31.
In thousands
Bond Series Maturity Date Interest Rate Amount March 31, 2007
HMB1 December 15, 2009 10.00% $4,420 $4,420
HMB1 December 15, 2009 8.50% €9,905 15,269
HMB2 April 25, 2010 7.50% €30,000 46,241
HMB4 November 30, 2011 7.50% €20,010 30,843
HMB5 December 31, 2011 7.50% €20,010 30,843
HMB6 June 30, 2012 7.50% €31,230 48,137
HMB7 June 30, 2012 7.25% €31,230 48,137
Total $223,890
Construction Financing – The Company has arranged construction financing, which is
demand in nature, for its development properties. Borrowing rates on these financing are at fixed or
variable market rates and the weighted average interest rate for all construction financing is 7.05%.
The Company has pledged its development properties as security. Upon completion of the properties,
it is the Company’s intention to replace the construction financing with long-term financing.
Non Construction Demand Loans — Non construction demand loans payable bear interest at
U.S. base rate plus 1% secured by deposit certificates representing 949,862 shares of DIM Vastgoed
N.V. and a merger loan bearing interest at 7.5% secured by the investment in units of Alexis Nihon on
March 31, 2007.
Unsecured Debt
Corporate Non-Asset Backed Bonds – The corporate non-asset backed bonds consist of sevenyear
bonds issued in series and secured by a guarantee by from Homburg. The bonds mature between
May and October 2013 and the Company has the option to redeem any series of bonds at their
principal amount at any time subsequent to the fifth anniversary of the issue of the bonds. The
interest is payable semi-annually on June 30 and December 31.
Bond Series Maturity Date Interest Rate Amount
In thousands
March 31, 2007
HB8 May 31, 2013 7.00% €50,010 $77,083
HB9 October 31, 2013 7.00% €53,900 92,482
HB10 February 15, 2014 7.25% €7,770 11,970
Total $181,535
Junior Subordinated Notes – The junior subordinated notes require interest only payments
until maturity in 2036. The notes, which consist of €25 million, and U.S. $20 million have a fixed
interest rate until 2016 and variable thereafter until maturity. The Company has a redemption option
effective in 2011 until maturity.
Debt Maturities

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The following table outlines the Company’s principal payments and debt maturity balances
relating to mortgages and mortgage bonds payable, the unsecured corporate non-asset backed bonds
and the unsecured junior subordinated notes as at March 31, 2007.
Financing of Alexis Nihon Acquisition
On April 4, 2007, Homburg Acquisition entered into the Credit Agreement with an affiliate of
BMO Nesbitt Burns Inc. to fund the Alexis Nihon Acquisition through the Bridge Loans. The
Company will use the net proceeds of the Offering to repay all or a portion of the Bridge Loans. See
paragraph 15.4 “The Alexis Nihon Acquisition – Financing” and Chapter 22 “Use of Proceeds of the
New Shares”.
18. SELECTED FINANCIAL INFORMATION
18.1 Consolidated financial information
The selected consolidated financial information set forth below is that of Homburg and its
Subsidiaries. This information should be read in conjunction with management’s discussion &
analysis and the Company’s Audited Consolidated Annual Financial Statements together with the
notes thereto and the auditors’ report thereon, as well as the Company’s Unaudited Consolidated
Interim Financial Statements for the three-month period ended March 31, 2007 and the related
MD&A, each prepared in accordance with Canadian GAAP and included or incorporated by reference
in this Prospectus. The consolidated financial data are extracted or derived from the Company’s
Audited Consolidated Annual Financial Statements or Unaudited Consolidated Interim Financial
Statements prepared in accordance with Canadian GAAP for the financial years ended December 31,
2006, 2005 and 2004 or the three-month period ended March 31, 2007, as the case may be. The
selected consolidated financial data set forth below may not contain all of the information that is
important to the prospective investors.

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18.2 Miscellaneous
The Credit Agreement
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The Credit Agreement comprises customary negative covenants including, without limitation,
limitations in respect of the incurrence of liens, debt, inter-company loans and capital expenditures, of
the making of investments, of mergers, of the granting of financial assistance or guarantees and of the
payment of dividends or other distributions, subject to certain exceptions stated therein. Subject to the
receipt of a notice from the administrative agent under the Credit Agreement in respect of the
syndication of the facilities provided for in the agreement, the Credit Agreement also comprises a debt
service coverage ratio and a ratio of total indebtedness to gross book value of total assets.
Working capital statement
In addition to the other statements set out in this Prospectus, we hereby make the following
representation with respect to the information provided:
The Company has insufficient working capital for its present requirements. The deficiency in
the working capital is the result of the following:
At March 31, 2007, the Company has committed expenditures amounting to CAD 37 million
and uncommitted estimated expenditures of CAD 178 million related to development projects. These
committed and uncommitted amounts, when expended, would result in a working capital deficiency
of CAD 102 million.
The Company does not presently have sufficient working capital to fund these committed and
uncommitted expenditures. Without additional funding, the Company would be in a negative working
capital position by the end of September 2007. The Company intends to fund these expenditures as
they are incurred with existing cash balances, existing borrowing facilities, new construction
financing, proceeds from new bond issues which have been received to date and are expected to be
completed by June 30, 2007, the issuance of new shares which is expected to be completed by June
30, 2007, and through the announced disposition of specific properties being developed for resale
which is expected to be completed by September 30, 2007. The Company is not dependent on any one
of the above proposed actions in order to maintain the ability to continue with its planned expenditure
schedule. The Company has confidence that, sufficient working capital will be generated from one or
more of the above sources so as not to create any deferral of expenditures as planned, nor any realized
working capital deficiency.
Transactions with Related Parties
The Company has entered into agreements with companies commonly controlled by the
Chairman and Chief Executive Officer to provide various services. A summary of the various
revenues and expenses between related parties are as follows:
December 31 December 31 December 31
2006 2005 2004
(Thousands) (Thousands) (Thousands)
Rental revenue earned $ (723) (246) (716)
Asset and construction management fees incurred $ 7,634 6,360 2,058
Property management fees incurred $ 1,925 1,833 1,727

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Insurance incurred $ 700 796 317
Service fees incurred $ 519 438 353
Property acquisition fees/disposal fees incurred $ 25,802 16,939 653
Mortgage bond guarantee fees incurred $ 3,701 3,571 1,050
Share issue costs incurred $ 3,536 Nil Nil
Construction financing interest and fees incurred $ 334 492 1,073
Bond and other debt issue costs incurred $ 8,290 3,704 2,629
The transactions are recorded at exchange amounts.
The total amount paid to related parties for services rendered amounted to $52.4 million for
the year ended December 31, 2006, $34.1 million for the year ended December 31, 2005 and $9.9
million for the year ended December 31, 2004. A summary of payments to related parties in respect of
the three-month period ended March 31, 2007 is included in paragraph 13.7 “Related Party
Transactions” under the heading “Summary of Payments to Related Parties”.
Expense Ratio
The expense ratio, within the meaning of the Dutch Financial Supervision Act, amounts to
27.63% in respect of the financial year 2006, compared to 20.65% in respect of the financial year
2005. The expense ratio is calculated as the total costs compared to the weighted average net asset
value in respect of a financial year, whereby total costs include all property operating expenses, stock
based compensation, general and administrative expenses, foreign exchange losses and amortisation
and income taxes but does not includes interest costs.

19. CONSOLIDATED CAPITALIZATION
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The following table sets forth the consolidated capitalization of the Company (i) as at March
31, 2007, on an actual basis, (ii) as at March 31, 2007 as adjusted to give effect to the Offering (and
the use of the net proceeds of the Offering) and Alexis Nihon Acquisition, and (iii) as at March 31,
2007 as adjusted to give effect to the Offering (and the use of the net proceeds of the Offering), the
Alexis Nihon Acquisition and the Cominar Sale. This table has been extracted from and should be
read in conjunction with the Company’s (i) Unaudited Consolidated Interim Financial Statements for
the three-month period ended March 31, 2007, prepared in accordance with Canadian GAAP, and (ii)
Unaudited Pro Forma Combined Financial Statements for the three-month period ended March 31,
2007, both included in this Prospectus. The information in the table has not been audited.
Notes:
(1) After giving effect to the issuance of 36,200,000 Subscription receipts pursuant to the Offering (excluding the
Over-Allotment Option) and the use of the net proceeds of the Offering of approximately $181.5 million. See “Use
of Proceeds”.
(2) Does not include $24,064,000 representing the purchase price option on the remaining 6.63% interest in MoTo
Objekt Campeon GmbH & Co KG not currently held by the Company, exercisable in the first quarter of 2012, and
the account balances of the current partners holding such remaining 6.63% interest, nor the DIM Vastgoed N.V.
payable relating to deposit certificates representing shares of DIM Vastgoed N.V. obtained in the first quarter of
2006 for which the Company does not make payment until October 2010.
20. DESCRIPTION OF SHARE CAPITAL
20.1 Authorized and Issued Capital
The authorized capital of the Company consists of (i) an unlimited number of Class A Shares;
(ii) an unlimited number of Class B Shares, (iii) an unlimited number of Class A Preferred Shares

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issuable in series, and (iv) an unlimited number of Class B Preferred Shares issuable in series. The
shares have no par value. As at June 25, 2007, there were 100,360,959 Class A Shares and 31,514,782
Class B Shares issued and outstanding. All issued shares are fully paid. After giving effect to the
Offering, there will be 136,560,959 Class A Shares and 31,514,782 Class B Shares issued and
outstanding. The votes attaching to the Class A Shares will represent in the aggregate 14.8 % of the
votes attaching to all of the issued and outstanding shares of the Company. Our Class A and Class B
Shares are in registered form. All shares are created by the Articles, which are governed by the
ABCA.
Immediately after the Offer, assuming subscription receipts representing 36,200,000 new
Class A Shares will be offered and exchanged for Class A Shares, based on the issue price of CAD
5.25 per subscription receipt and an amount offered of CAD 190,050,000, we expect to have
136,560,959 Class A Shares issued and outstanding. The percentage of immediate dilution resulting
from the Offer, assuming no exercise of the Underwriter’s Option, is 26.5% and amounts to CAD
190,050,000.
The following is a summary of the material features of the Company’s authorized capital and
is qualified in its entirety by reference to the full text of the rights, privileges, restrictions and
conditions of such shares in the Articles.
Class A Shares
The Class A Shares are entitled to receive notice of, attend and vote at all meetings of
Shareholders, voting together with holders of Class B Shares, except for meetings at which only
holders of a specified class or series are entitled to vote. The Class A Shares are entitled to receive
dividends as and when declared by the Board of Directors, subject to the prior rights of holders of
shares of any other class ranking senior and, unless otherwise provided by legislation, are entitled to
one vote per Class A Share on all matters to be voted on at all meetings of Shareholders. Upon the
liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders
of Class A Shares are entitled to share rateably in the remaining assets available for distribution, after
payment of liabilities and prior rights of holders of Shares of any other class ranking senior to such
class. Class A Shares are convertible into Class B Shares in certain limited circumstances involving
offers made to all or substantially all of the holders of Class B Shares.
Class B Shares
The Class B Shares are entitled to receive notice of, attend and vote at all meetings of
Shareholders, voting together with holders of Class A Shares, except for meetings at which only
holders of a specified class or series are entitled to vote. The Class B Shares are entitled to receive
dividends as and when declared by the Board of Directors, subject to the prior rights of holders of
shares of any other class ranking senior and, unless otherwise provided by legislation, are entitled to
25 votes per Class B Share on all matters to be voted on at all meetings of Shareholders. Upon the
liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders
of Class B Shares are entitled to share rateably in the remaining assets available for distribution, after
payment of liabilities and prior rights of holders of Shares of any other class ranking senior to such
class. Pursuant to the Articles, the Company cannot issues new Class B Shares, other than in respect
of the conversion rights of holders of Class A Shares, such Class B Shares having already been
authorized and reserved for issuance.
Class A and B Preferred Shares
The Preferred Shares are issuable from time to time in one or more series, each series
comprising the number of shares, designations, rights, privileges, restrictions and conditions which
the Board of Directors determines by resolution prior to issuance. The Preferred Shares are non-voting
and rank in priority to the Class A Shares and Class B Shares with respect to dividends and

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distribution upon dissolution. No Preferred Shares have been issued.
Prior Issuances
The Company has issued Class A Shares in the past as partial consideration for the acquisition
of property, and may decide to do so in the future. On May 30, 2005, Homburg issued 23,370,832
Class A Shares as partial consideration to the vendors of the Dutch and German portfolio acquired on
that date. Of those Class A Shares, 30% were subject to 90 day lock-ups. The remaining 70% were
subject to a three year lock-up. The Company granted an early release on most of those shares and
only 1,000,000 of those Class A Shares remain subject to a lock-up. The Board of Directors has
authorized Richard Homburg to decide whether and when to release the lock-up on these remaining
Class A Shares.
Homburg published a prospectus on 6 June 2006 in accordance with Section 3 of the Dutch
Securities Act 1995 (Wet toezicht effectenverkeer 1995) in connection with a public offering of Class
A Shares aimed at investors in the EU. On June 20, 2006, Homburg issued 14,285,715 Class A shares
at $4.34 per share under that prospectus. The following Class A Share issuances have been made
since then:
Date Number of Class
A Shares issued
Price 1
Comment
June 21, 2006 5,950,000 $5.60 Private placement - four Dutch properties
June 22, 2006 968 $4.34 Correction of Dividend Reinvestment Plan error re Edward
Ovsenny
August 16, 2006 3,000,420 $6.46 Share issue for an acquisition in Munich, Germany
August 16, 2006 40,000 $2.85 Options exercised by Ashley Phillips
August 16, 2006 1,940 $2.85 Options exercised by employee
Sept 11, 2006 7,000 $2.85 Options exercised by employee
Sept 12, 2006 8,000 $2.85 Options exercised by employee
Sept 30, 2006 2,630,326 $4.71 New shares issued for the Dividend Reinvestment Plan
October 27, 2006 745 $4.71 New shares issued for the Dividend Reinvestment Plan
November 30,
2006
690,000 $6.10 SUV B.V.
310,000
Stollburgh
B.V.
Dec 18, 2006 7,000 $2.85 Options exercised by employee
Dec 18, 2006 2,500 $2.85 Options exercised by employee
January 19, 2007 2,685 $2.85 Options exercised by employee
Share issue for the acquisition of four commercial
properties in the Netherlands. Stollburgh B.V. is
controlled by Richard Homburg and J. Richard
Stolle. SUV B.V. is partly owned by Stollburgh
B.V.
January 19, 2007 617,344 $1.26 Options exercised by Richard Homburg
January 19, 2007 574,627 $2.85 Options exercised by Richard Homburg
January 19, 2007 76,433 $4.71 Shares issued under the
Dividend Reinvestment Plan to correct an error in Sept 2006
January 19, 2007 55,299 $4.34 Shares issued under the Dividend Reinvestment Plan to correct
an error in March 2006
January 31, 2007 6,368,164 $5.12 Private placement with Uni-Invest, an entity controlled by
Richard Homburg
February 6, 2007 $2.85 Options exercised by employee

2,500
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February 6, 2007 2,500 $2.85 Options exercised by employee
February 6, 2007 2,500 $2.85 Options exercised by employee
February 6, 2007 2,500 $2.85 Options exercised by employee
February 8, 2007 1,000,000 $6.48 Acquisition of five properties in Venlo, Eindhoven, Gouda and
Roermond, the Netherlands
February 8, 2007 60 $2.85 Options exercised by employee
February 9, 2007 2,500 $2.85 Options exercised by employee
February 12, 2007 7,000 $2.85 Options exercised by employee
February 19, 2007 45,000 $2.85 Options exercised by Jeffrey Coates
February 19, 2007 2,500 $2.85 Options exercised by employee
February 19, 2007 80 $2.85 Options exercised by employee
February 19, 2007 65,000 $2.85 Options exercised by Michael Arnold
February 20, 2007 2,500 $2.85 Options exercised by employee
February 28, 2007 350,000 $6.97 Acquisition of the Henderson Farms property in Calgary,
Alberta, Canada
February 28, 2007 1,603,731 $6.97 Acquisition of 62 residential rental units in Fort McMurray,
Alberta, Canada
March 8, 2007 5,000 $2.85 Options exercised by employee
March 9, 2007 351 $2.85 Options exercised by employee
March 14, 2007 2,500 $2.85 Options exercised by employee
March 29, 2007 2,500 $2.85 Options exercised by employee
March 30, 2007 2,094,470 $6.58 New shares issued for the Dividend Reinvestment Plan
March 30, 2007 74,123 $6.58 New shares issued for the Dividend Reinvestment Plan
April 11, 2007 100 $2.85 Options exercised by employee
April 30, 2007 284,210 $7.28 Acquisition of property in Beuningen, the Netherlands
May 29, 2007 210 $2.85 Options exercised by employee
May 30, 2007 25.000 $2.85 Options exercised by employee
June 25, 2007 400 $2.85 Options exercised by employee
June 25, 2007 100,360,959 TOTAL OUTSTANDING
Note:
(1) Where shares are being issued as payment in kind for the acquisition of properties, the Company uses the average stock
price during the 30 calendar days immediately before the transaction as the value attributed to those shares.
The Company currently has 88,028,145 Class A Shares admitted to trading on Eurolist. The
Existing Shares for which the Company intends to apply for admission to trading on Eurolist comprise
all Class A Shares issued prior to the Offering that have not yet been admitted to listing on Eurolist.
This includes 2,156,942 Class A Shares issued prior to the Company´s first quotation on Eurolist on
March 31, 2006 but not previously admitted to listing on Eurolist.

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20.2 Dividends, Dividend Policy and Dividend Reinvestment Plan
Dividends are payable on all Class A Shares and Class B Shares if, as and when declared by
the Board of Directors. Any dividends thus declared will be declared contemporaneously and paid at
the same time and in the same amount per share on all the Class A Shares and Class B Shares at the
time outstanding, without preference or priority of one share over another.
The holders of the Class A Preferred Shares and the Class B Preferred Shares (subject to the
preferences afforded to the Class A Preferred Shares over the Class B Preferred Shares) are entitled to
the payment of dividends in priority to the holders of the Class A Shares, the Class B Shares and any
other shares of the Company ranking junior to the Class A Preferred Shares or the Class B Preferred
Shares from time to time to the payment of dividends. Such dividends are to be paid rateably with the
other holders of Class A Preferred Shares or Class B Preferred Shares, as the case may be, provided
that accumulated dividends, if any, are paid preferentially to the holders of such series as determined
by the Board of Directors at the time the Preferred Shares are issued. Unclaimed dividends will be
forfeited and will revert to Homburg after a period of 6 years from the date on which this dividend has
been declared payable.
The amount of any dividend paid on the shares of the Company is at the discretion of the
Board of Directors, subject to the provisions of the ABCA. Since September 2004, dividends have
been and, subject to the approval of the Board of Directors, will be paid semi-annually on March 30
and September 30 for Class A Shares and Class B Shares. The record date for dividend payments has
typically been fifteen calendar days before the dividend payment date. The first semi-annual dividend
of 2007 was paid in an amount of $0.18 per share on March 30, 2007 to Shareholders of record on
March 15, 2007.
On May 4, 2007 the Board of Directors approved an increase of the semi-annual dividend to
$0.24 per share commencing with the second semi-annual dividend of 2007. If declared, this second
semi-annual dividend payment would be paid on September 30, 2007 and would result in a total
dividend payment of $0.42 per share for 2007, and is anticipated to result in an annualized dividend
payment of $0.48 per share in 2008. The increase of the semi-annual dividend to $0.24 per share
represents the fifth increase in the amount of the semi-annual dividend since the Company began
paying dividends in September 2004. The Company aims to continue to make stable dividend
payments going forward. This reflects the Company’s strategic goal of providing a dual return to its
Shareholders through both dividends and appreciation in the value of its shares.
Shareholders may opt to participate in the Dividend Reinvestment Plan. In each of the
previous four dividend payments, between 61% and 86% of the total dividend payment was
reinvested through the Dividend Reinvestment Plan. The Dividend Reinvestment Plan enables
Shareholders to invest the cash dividends paid on the Class A Shares and Class B Shares in additional
Class A Shares. A participant in the Dividend Reinvestment Plan may elect to invest cash dividends
paid on its shares with respect to all or 50% of its shares. Class A Shares bought under the Dividend
Reinvestment Plan are acquired at 97% of the average market price based on the weighted average
closing price for the 20 days immediately preceding the applicable dividend date (subject to Board of
Directors approval). More detailed financial information is available in the Dividend Reinvestment
Plan, available electronically on the website of the Company at www.homburginvest.com. The net
asset value per share (unaudited) as at December 31, 2006 was $ 4.27.
The table below sets forth the Company’s earnings, dividend and share price data for the
three-month period ended March 31, 2007 and the years ended December 31, 2006, 2005 and 2004.

Notes:
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(1) Cash dividend based on last twelve months ending March 31, 2007.
(2) Class A Share price in 2005 and 2006, and 2007 common share price in 2004.
(3) Dividend Payout Ratio = Cash Dividend Declared per Share / Earnings per Share
(4) For the three months ended March 31, ratios and yields are calculated based on annualized Earnings per Share and annualized
FFO per share.
(5) Dividend Yield = Cash Dividend Declared per Share / Share Price at Year End
(6) FFO Payout Ratio = Cash Dividend Declared per Share / FFO per Share.
Share price development
The tables below sets forth the high and low closing prices for the periods and days indicated
for the Class A Shares on the TSX. The table also includes aggregate trading volume for the
Company’s shares in the period indicated.
Low High Aggregate volume
(000 shares)
March 2006 3.95 6.25 325.0
April 2006 4.81 7.40 632.8
May 2006 5.00 6.20 633.6
June 2006 5.05 6.24 38.0
July 2006 4.60 5.75 12.8
August 2006 4.45 5.34 23.0
September 2006 4.80 5.05 308.2
October 2006 4.90 6.50 64.0
November 2006 5.60 6.00 161.1
December 2006 5.60 6.25 27.6
January 2007 6.35 7.80 359.6
February 2007 5.60 6.75 105.0
The table below sets forth the high and low closing prices for the periods and days indicated
for the Class A Shares on Eurolist and the aggregate trading volume of the Class A Shares in the
period indicated.
Low High Aggregate volume
(€) (€) (000 shares)
March 31, 2006 3.65 4.43 623.4
April 2006 3.90 5.80 4,577.8
May 2006 3.98 4.45 1,090.7
June 2006 3.4 4.25 1,018.7
July 2006 3.41 3.65 2,060.1
August 2006 3.42 3.68 2,194.5

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September 2006 3.48 3.67 1,142.6
October 2006 3.53 4.15 2,902.9
November 2006 4.00 4.15 1,688.2
December 2006 3.80 4.04 1,241.3
January 2007 3.82 4.35 267.1
February 2007 4.00 4.55 146.9

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21. PLAN OF DISTRIBUTION OF THE NEW SHARES
Pursuant to an underwriting agreement dated June 5, 2007 between the Company and the
Underwriters (the “Underwriting Agreement”), the Company has agreed to sell and the Underwriters
have agreed to purchase 36,200,000 subscription receipts in respect of Class A Shares on June 13,
2007 or on such other date as may be agreed to between the Company and the Underwriters, but in
any event not later than June 27, 2007. The Underwriters have severally agreed to purchase these
subscription receipts, subject to the terms and conditions contained in the Underwriting Agreement, at
a price of $5.25 per subscription receipt payable in cash against delivery of one or more definitive
share certificates evidencing the subscription receipts. The offering price of the subscription receipts
was determined by negotiation between the Company and the Underwriters with reference to the
market price of the Class A Shares. The Underwriting Agreement provides that the Company will pay
the Underwriters an aggregate fee of $8,552,250 ($0.23625 per subscription receipt) in respect of all
of the subscription receipts offered in consideration for the services of the Underwriters in connection
with the Offering. The Underwriters’ fee is payable as to 50% upon the closing of the Offering and
50% upon the release of the escrowed funds to the Company.
The Company resolved to the issue of the New Shares on June 4, 2007. The New Shares will
be issued on the third Business Day following the date of approval of this prospectus by the AFM.
The obligations of the Underwriters under the Underwriting Agreement are several and may
be terminated at their discretion upon the basis of their assessment of the state of the financial markets
and may also be terminated upon the occurrence of certain stated events. The Underwriters are,
however, obligated to take up and pay for all of the subscription receipts as described above if any of
the subscription receipts are purchased under the Underwriting Agreement. The Company has agreed
to indemnify the Underwriters against certain liabilities, including liabilities under applicable
securities legislation, or to contribute to payments the Underwriters may be required to make in
respect of those liabilities.
The Company has granted to the Underwriters the Over-Allotment Option, which is
exercisable for a period of 30 days from the date of the closing of the Offering, to purchase up to
5,430,000 subscription receipts in respect of Additional Shares on same terms as set forth above,
payable in cash against delivery of one or more certificates evidencing such subscription receipts in
respect of Additional Shares, representing up to 15%% of the Class A Shares offered pursuant to the
Offering. The Over-Allotment Option is exercisable in whole or in part only for the purpose of
covering over-allotments, if any, made by the Underwriters in connection with the Offering and for
market purposes. This Prospectus qualifies the distribution of the Over-Allotment Option and also the
Additional Shares issuable upon exercise of the Over-Allotment Option.
The TSX has conditionally approved the listing of the New Shares (including the Class A
Shares that may be issued upon the exercise of the Over-Allotment Option) on the TSX. Listing on
the TSX is subject to the Company fulfilling all of the listing requirements of the TSX on or before
August 2, 2007.
The Company also intends to apply for admission of the New Shares and the Existing Shares
to trading on Eurolist. Trading on Eurolist of the New Shares and the Existing Shares is expected to
commence on or about July 11, 2007 (the “Euronext Listing Date”) or as soon as possible thereafter.
The New Shares have not been and will not be registered under the 1933 Act or any
applicable state securities laws and may not be offered or sold within the United States absent
registration or pursuant to an applicable exemption from the 1933 Act and exemptions from any
applicable state securities laws. The Underwriters have agreed that, except as permitted by the
Underwriting Agreement and in accordance with applicable laws of the United States, they will not
offer or sell any subscription receipts in respect of Class A Shares or Class A Shares within the United
States. The Underwriting Agreement permits the Underwriters to reoffer and resell subscription

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receipts in respect of Class A Shares purchased by them pursuant thereto to certain qualified
institutional buyers in the United States who are also “qualified purchasers” as defined in Section
2(a)(51)(A) of the U.S. Investment Company Act of 1940, as amended, provided that such reoffers
and such resales are made only in accordance with Rule 144A under the 1933 Act (which Rule
provides an exemption from registration under such laws in connection with such reoffers and
resales). This Prospectus does not constitute an offer to sell, or a solicitation of an offer to buy, any of
the subscription receipts in respect of Class A Shares or Class A Shares in the United States. In
addition, until 40 days after the commencement of the Offering, an offer or sale of Class A Shares
within the United States by any dealer (whether or not participating in the Offering) may violate the
registration requirements of the 1933 Act unless such offer is made pursuant to an exemption under
the 1933 Act.
Pursuant to policy statements of the Ontario Securities Commission and the Autorité des
marchés financiers (the securities regulator for the Canadian province of Quebéc), the Underwriters
may not, throughout the period of distribution, bid for or purchase subscription receipts in respect of
Class A Shares or Class A Shares. The foregoing restriction is subject to certain exceptions, on the
condition that the bid or purchase is not engaged in for the purpose of creating actual or apparent
active trading in, or raising the price of, the subscription receipts in respect of Class A Shares or
Class A Shares. These exceptions include bids or purchases permitted under the Universal Market
Integrity Rules relating to market stabilization and passive market-making activities and bids or
purchases made for and on behalf of a customer where the order was not solicited during the period of
distribution. The Company has been advised that, under the first-mentioned exception, in connection
with the Offering, the Underwriters may over-allot or effect transactions which stabilize or maintain
the market price of the subscription receipts in respect of Class A Shares or Class A Shares at levels
other than those which might otherwise prevail in the open market. Such transactions, if commenced,
may be discontinued at any time.
The Company and Richard Homburg have agreed not to directly or indirectly issue any Class
A Shares or Class B Shares, securities or other financial instruments convertible into or having the
right to acquire Class A Shares or Class B Shares (other than pursuant to rights or obligations under
securities or instruments outstanding, including the Stock Option Plan, Dividend Reinvestment Plan
or any employee share purchase plan) or enter into any agreement or arrangement under which the
Company or Mr. Homburg acquires or transfers to another, in whole or in part, any of the economic
consequences of ownership of Class A Shares or Class B Shares, whether that agreement or
arrangement may be settled by the delivery of Class A Shares, Class B Shares, or other securities or
cash, or agree to become bound to do so, or disclose to the public any intention to do so, from April 5,
2007 until 90 days after the closing of the Offering, without first obtaining the written consent of
BMO Nesbitt Burns Inc., which consent will not be unreasonably withheld.
Subscriptions for subscription receipts in respect of Class A Shares will be received subject to
rejection or allotment in whole or in part, and the Underwriters reserve the right to close the
subscription books at any time without notice.
BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc. and
HSBC Securities (Canada) Inc. is an affiliate of a Canadian chartered bank that is a lender to the
Company. Consequently, the Company may be considered a ´connected issuer´ of BMONesbitt Burns
Inc., CIBCWorld Markets Inc., RBC Dominion Securities Inc. and HSBC Securities (Canada) Inc.
within the meaning of applicable Canadian securities legislation.
As at June 4, 2007, the Company was indebted to Canadian chartered banks that are affiliates
of CIBC World Markets Inc., RBC Dominion Securities Inc. and HSBC Securities (Canada) Inc.
under mortgage loans of approximately $16.3 million, $3.3 million and $22.4 million, respectively.
The indebtedness is in each case secured by a first ranking mortgage on the property that is financed
under the applicable loan. Affiliates of CIBC World Markets Inc. and RBC Dominion Securities Inc.
are also members of a syndicate of financial institutions that have provided a line of credit to Alexis
Nihon in the amount of approximately $65 million. The indebtedness under the line of credit is

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secured by a second ranking hypothec on two income producing properties of Alexis Nihon. As at
June 4, 2007, approximately $63.6 million was outstanding under the line of credit. An affiliate of
HSBC Securities (Canada) Inc. has also provided an operating line of credit to the Company in the
amount of approximately $10.9 million. The indebtedness under the operating line of credit is secured
by a first ranking security on the assets of the Partnership that is financed through this line of credit.
As at June 4, 2007, approximately $10.9 million was outstanding under the line of credit.
BMO Nesbitt Burns Inc. is an affiliate of a Canadian chartered bank that has entered into the
Credit Agreement with the Company providing for the Bridge Loans to fund the Alexis Nihon
Acquisition (see Paragraph 15.4 “The Alexis Nihon Acquisition—Financing”). As at June 4, 2007, the
principal amount outstanding under the Bridge Loans was approximately $463 million. The Company
will use the net proceeds of this Offering to repay all or a portion of the Bridge Loans. See Chapter 22
“Use of Proceeds of the New Shares”.
Homburg is in compliance with the terms of the agreements governing the loans described
above (including the Credit Agreement) and none of the lenders under such loans waived any material
breach by Homburg of such agreements since their execution. Neither the financial position nor the
value of the security under each loan has changed substantially since the indebtedness under each loan
was incurred.
The decision to distribute the Class A Shares offered under this Prospectus and the
determination of the terms of the distribution were made through negotiations between the Company
and the Underwriters. The lenders under the loans described above did not have any involvement in
such decision or determination, but have been advised of the issuance and its terms. As a result of this
issuance the Underwriters, including BMO Nesbitt Burns Inc., CIBCWorld Markets Inc., RBC
Dominion Securities Inc. and HSBC Securities (Canada) Inc. will receive their respective share of the
Underwriters’ fee.
22. USE OF PROCEEDS OF THE NEW SHARES
The estimated net proceeds to the Company from the sale of the Offer Shares will be
$180,547,500, after the deduction of the Underwriters’ fee of $8,552,250 and expenses of the Offering
payable by the Company totalling $950,250.
If the Over-Allotment Option is exercised in full the estimated net proceeds of the Company
from the sale of the Offer Shares and the Additional Shares will be $207,629,624, after deduction of
the Underwriters´fee of $9,835,087.50 and expenses of the Offering payable by the Company totalling
$1,092788.
The Company will use the net proceeds of the Offering to repay all or a portion of the Bridge
Loan, which was put in place to finance the Alexis Nihon Acquisition. If, at the time of release of the
Escrowed Funds to the Company, the amount outstanding under the Bridge Loans is lower than the
net proceeds of the Offering, the remainder of such net proceeds after repayment of the Bridge Loans
will be used for general corporate purposes. See paragraph 15.4 “The Alexis Nihon Acquisition-
Financing”.
23. SHARE TRADING INFORMATION
ISIN code: CA4368712069
Common Code: 024021564
Amsterdam Security Code: 37116
Eurolist Symbol: HII

24. DISCLOSURE OF INFORMATION
Canada
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The Board of Directors has ultimate responsibility for ensuring that the Company complies
with all its disclosure obligations under Canadian securities law and the rules and regulations of the
TSX. The Board of Directors has assigned this responsibility to its senior executive Officers. The
Chief Executive Officer and Chief Financial Officer are responsible for all regulatory disclosure
requirements and for overseeing the Company’s disclosure practices. In carrying out their
responsibilities, the Chief Executive Officer and Chief Financial Officer are expected to consult with
the Board of Directors or with an appropriate committee appointed by the Board of Directors
mandated with dealing with certain disclosure matters, as deemed necessary or desirable.
Provincial securities legislation in Canada and the applicable rules of the TSX require listed
companies to disclose all material information promptly by issuing a news release and filing within 10
days of any material change a material change report. The Chief Executive Officer and Chief
Financial Officer will determine appropriate industry and company benchmarks to be considered in an
assessment of the materiality of information. Guided by these benchmarks and advice from legal
counsel, the Chief Executive Officer and Chief Financial Officer will use experience and judgement
to determine the timing for public release of material information. The Chief Executive Officer and
Chief Financial Officer are responsible for ensuring appropriate systems, processes and controls for
disclosure and will ensure the proper review and approval of all news releases and core disclosure
documents prior to their release or filing, including the Company's financial statements,
management´s discussion and analysis and Annual Information Form by the Board of Directors or an
appropriate committee of the Board of Directors mandated with such responsibility. The Chief
Executive Officer and Chief Financial Officer will also require review of relevant portions of
disclosure documents by other members of Management, by the Board of Directors or an appropriate
committee of the Board, and by its external auditors and legal counsel as they see fit.
Material information is any information relating to the business and affairs of the Company
that results in, or would reasonably be expected to result in a significant change in the market price or
value of the Company’s issued securities or that would reasonably be expected to have a significant
influence on a reasonable investor’s investment decisions.
Obligations of Shareholders to disclose shareholdings
Under provincial securities laws in Canada, insiders must file insider reports on what is
known as the System for Electronic Disclosure by Insiders, or "SEDI" within 10 days of becoming
insiders disclosing any direct or indirect beneficial ownership of or control or direction over securities
of the reporting issuer as may be required by the regulations. Insiders must also file insider reports
subsequent to participating in any transactions involving its securities. Provincial securities legislation
includes provisions requiring insiders to report all trades in all securities, including the granting of
stock options, the exercise of stock options, purchases of shares from treasury and purchases and sales
of shares in the open market.
Insider reporting obligations apply to the following persons or companies, each of whom are
"insiders" for the purposes of insider reporting obligations set out in provincial securities legislation:
(i) every Director or senior Officer of the Company; (ii) every director or senior Officer of an issuer
that is itself an insider of the Company; (iii) every subsidiary of the Company; (iv) any person or
company that (A) beneficially owns, directly or indirectly, voting securities of the Company, (B)
exercises control or direction over voting securities of the Company, (C) beneficially owns, directly or
indirectly, certain voting securities of the Company and exercises control or direction over certain
other voting securities of the Company, carrying more than 10% of the voting rights attaching to all
voting securities of the Company for the time being outstanding other than voting securities held by
the person or company as underwriter in the course of a distribution; or (v) the Company if it has
purchased, redeemed or otherwise acquired any of its securities, for as long as it holds any of its

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securities, that the Company is not an insider of itself if the securities that it has purchased, redeemed
or otherwise acquired have been cancelled and returned to its authorised by unissued capital.
Where a company becomes an insider of the Company, the Directors and Officers of that
company are deemed to have been insiders of the Company for the previous six months. In addition, if
that company is a reporting issuer, the Directors and senior Officers of the Company are deemed to
have been insiders of that reporting issuer for the previous six months.
Obligations of Shareholders to make a public offer
Subject to limited exemptions, the offer to acquire voting or equity securities of a class of the
Company that together with the securities already held by the offeror, constitutes 20% or more of the
outstanding securities of that class is a "take-over bid" and may require the offeror to make a public
offer for all or part of the outstanding Shares of the Company.
Under the ABCA, an offeror who makes a take-over bid to acquire all the shares of any class
of shares of the Company may have a right of compulsory acquisition (squeeze out right). If within
the time limited in the take-over bid for its acceptance or within 120 days after the date of the takeover
bid, which ever period is the shorter, the bid is accepted by the holders of not less than 90% of
the shares of the class to which the take-over bid relates (other than shares of that class held at the
date of the take-over bid by or on behalf of the offeror), the offeror will be entitled, on compliance
with the detailed provisions of the ABCA, to acquire the shares of that class held by those who did not
accept the offer. The provisions of the ABCA provide a mechanism for those dissenting offerees who
comply with the strict notice and timing provisions set forth therein to elect to demand payment of,
and or by a person who acquires from an offeree a share for which the take-over bid was made (each
a “dissenting offeree”) to apply to the court in Alberta to fix, the fair value of the shares if they do not
think that the offer price offered represents the fair value. Any judicial determination of fair value
could be more or less than the price offered pursuant to the take-over bid.
Obligation of company to prepare and file certain documentation
In addition to preparing and filing audited consolidated financial statements and
management's discussion & analysis with securities regulators and on SEDAR, the Company is
mandated under provincial securities laws in Canada to prepare and file on an annual basis, for the
benefit of all Shareholders and potential investors, an annual information form, and a copy of any
Management information circular which was sent to Shareholders in connection with the solicitation
of proxies for a meeting of Shareholders. Both of these documents have a prescribed form with which
the Company complies.
The Company also has an obligation under securities laws to prepare and file with the
securities regulators and on SEDAR, a business acquisition report setting out key information with
respect to significant acquisitions made by the Company and a report outlining the voting results of
any resolution that was placed before the Shareholders at an annual general or special meeting of
Shareholders and to file on an ongoing basis a copy of any disclosure material that the Company
sends to Shareholders, any document affecting the rights of Shareholders and a copy of any contract
that the Company or any of its Subsidiaries is a party to, other than a contract entered into in the
ordinary course of business, that is material to the Company.
The Netherlands
Disclosure of inside information
As the Company is listed on Eurolist, the Company is obliged to disclose without delay any
inside information pursuant to the Financial Supervision Act. A company may decide to postpone the
disclosure of inside information, provided that (i) such postponement serves a legitimate interest, (ii)
as a result of the postponement the public will not be misled and (iii) the company can safeguard the

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confidentiality of the inside information. Insider information is information that is specific and
pertains directly or indirectly to the Company or its securities or the trading thereof and that (a) has
not been made public and (b) where disclosure could have a significant effect on the price of the
securities in question or derivatives of those securities.
Insider transactions disclosure obligations
Pursuant to the Financial Supervision Act, which incorporates the Act of 23 June 2005 (Wet
Marktmisbruik) implementing the Market Abuse Directive 2003/6/EC and related Commission
Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, members of the Board of Directors and any
other person discharging day-to-day (co)managerial responsibilities or having the authority to make
decisions affecting the future developments of the Company and business prospects and who have
regular access to inside information relating, directly or indirectly, to the Company (“person“), are
required to notify the AFM of the existence of transactions conducted on their own account relating to
the shares of the Company or in securities which value is determined by the value of its shares.
Any persons designated by the governmental decree pursuant to the Financial Supervision
Act dated 12 October 2006 (Besluit Marktmisbruik Wft) who are closely associated with the
Company’s members of the Board of Directors (as described above), are also required to notify the
AFM of the existence of any transactions conducted on their own account relating to its shares or
securities which value is determined by the value of its Class A Shares. The decree pursuant to the
Financial Supervision Act dated 12 October 2006 determines the following categories of persons: (i)
the spouse or any partner considered by national law as equivalent to the spouse, (ii) dependent
children, (iii) other relatives who have shared the same household for at least one year at the relevant
transaction date, (iv) any legal person, trust or partnership, amongst other things, whose managerial
responsibilities are discharged by a person referred to under (i), (ii) or (iii) above.
The AFM must be notified of transactions relating to the Class A Shares or securities which
have a value that is determined by the value of its shares within five days following the transaction
date. Notification may be postponed until the date when the value of the transactions amounts to
€5,000 or more per calendar year.
The Company is also required to have a code of conduct in respect of the reporting and
regulation of transactions in its securities and to draw up a list of persons working for the Company,
under a contract of employment or otherwise, who could have access to inside information, to
regularly update this list of persons and to inform persons on this list about the relevant prohibitions
and sanctions in respect of insider knowledge (voorwetenschap) and market abuse.
Obligations of Shareholders to disclose shareholdings
A person should notify the AFM again when his substantial holding consequently reaches,
exceeds or falls below a threshold. This can be caused by the acquisition or disposal of shares by the
shareholder or because the issued capital of the issuing institution is increased or decreased.
Thresholds are: 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% en 95%.
Obligations of Shareholders to make a public offer
Currently no mandatory offer rules exist in the Netherlands. The law implementing the
Takeovers Directive is expected to come into force in the course of 2007. The present draft of the law
defines 30% of the issued capital or the voting rights as control over a public company, triggering the
obligation to make a public bid except in certain circumstances.

25. MARKET REGULATION
Canada
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There is no national or federal securities regulator in Canada. Each province and territory has
its own securities commission or similar regulatory authority. The Company is a "reporting issuer" or
equivalent in all provinces and territories of Canada where such status exists. The TSX is owned and
operated by TSX Group Inc., a public company incorporated in Ontario, Canada. Market Regulation
Services Inc. is the market regulation services provider for Canadian equity markets, including the
TSX.
The Netherlands
The market regulator in the Netherlands is the AFM, insofar as the supervision of market
conduct is concerned. The AFM has supervisory powers with respect to the application of takeover
regulations. It also supervises the financial intermediaries (such as credit institutions and investment
institutions) and investment advisers.
Pursuant to the implementation of the Prospectus Directive 2003/71/EC in the Netherlands on
July 1, 2005, the AFM is the competent authority for approving all prospectuses published for
offering of securities and admission to trading on Eurolist. Due to the implementation of the Market
Abuse Directive and related Commission Directives on October 1, 2005, the AFM has assumed the
supervisory powers of Euronext with respect to publication of inside information by listed companies.
As an investment institution, the Company is subject to supervision by the AFM. However,
for regulations concerning financial safeguards, the Company is under the supervision of the Dutch
Central Bank (De Nederlandsche Bank N.V. (“DNB”)). The management of the Company and the
publication of information are also under supervision of the DNB, for as far as necessary for the
supervision regarding the financial safeguards.
The Dutch Financial Supervision Act and the rules promulgated thereunder provide for
requirements to the equity to be maintained, expertise and trustworthiness of management,
administrative organisation and internal control systems to prevent, among other things, conflict of
interests and to facilitate adequate supervision.
26. CERTAIN FEDERAL INCOME TAX CONSIDERATIONS
Introduction
In the opinion of Osler, Hoskin & Harcourt LLP and McCarthy Tétrault LLP, the following
general summary describes, as of the date of this Prospectus, the principal Canadian federal income
tax considerations of acquiring holding or disposing of Class A Shares pursuant to the Tax Act
generally applicable to a purchaser of Class A Shares pursuant to the Offering who, for purposes of
the Tax Act, at all relevant times, is resident or deemed to be resident in Canada, holds the Class A
Shares as capital property and deals at arm’s length with Homburg and is not affiliated with Homburg
nor with any person not dealing at arm’s length with Homburg. Generally, the Class A Shares will be
considered to be capital property to a holder provided the holder does not hold the Class A Shares in
the course of carrying on a business and has not acquired them in one or more transactions considered
to be an adventure in the nature of trade.
Certain holders who might not otherwise be considered to hold their Class A Shares as capital
property may, in certain circumstances, be entitled to have the Class A Shares and other “Canadian
Securities” (as defined in the Tax Act) be treated as capital property by making the irrevocable
election permitted by subsection 39(4) of the Tax Act.

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This summary is not applicable to a holder that is either a “financial institution” (as defined in
the Tax Act for purposes of the mark-to-market rules), a “specified financial institution”, or a holder
an interest in which is a “tax shelter investment” (all as defined in the Tax Act). Any such holder
should consult its own tax advisor with respect to an investment in the Securities.
This summary is based upon the facts set out in this Prospectus, the provisions of the Tax Act
in force as of the date of this Prospectus, Osler, Hoskin & Harcourt LLP and McCarthy Tétrault
LLP´s understanding of the current published administrative and assessing practices of the CRA and
the proposed amendments of the Tax Act. No assurance can be given that the CRA will not change its
administrative or assessing practices or that the proposed amendments will be enacted as currently
proposed or at all. Except for the proposed amendments, this summary does not take into account or
anticipate any changes in law or in the administrative or assessing policies of the CRA, whether by
legislative, governmental or judicial decision or action, nor does it take into account provincial,
territorial or foreign tax considerations, which may differ significantly from those discussed herein.
This summary is of a general nature only and is not exhaustive of all possible Canadian
federal income tax consequences of acquiring, holding or disposing of the Class A Shares.
Accordingly, this summary is not intended to be, nor should it be construed to be, legal or tax advice
to any purchaser of Class A Shares. Consequently, purchasers of Class A Shares should consult their
own tax advisors for advice with respect to the tax consequences to them, having regard to their
particular circumstances.
Canadian Resident Holders of Class A Shares
Dividends
The following applies to holders who are resident of Canada for the purposes of the Tax Act.
Dividends received or deemed to be received on the Class A Shares by a holder who is an
individual other than certain trusts will be included in computing the holder’s income subject to the
gross-up and dividend tax credit rules normally applicable under the Tax Act to taxable dividends
received from taxable Canadian corporations. A dividend will be eligible for the enhanced gross-up
and dividend tax credit if the paying corporation designates the dividend as an “eligible dividend”.
There may be limitations on the ability of a corporation to designate dividends as eligible dividends.
Taxable dividends received by an individual, or certain trusts, may give rise to alternative
minimum tax under the Tax Act, depending on the individual’s circumstances. Dividends received or
deemed to be received on the Class A Shares by a holder that is a corporation will be included in the
corporation’s income and will generally be deductible in computing its taxable income. Certain
corporations, including “private corporations” or “subject corporations” (as such terms are defined in
the Tax Act) may be liable to pay a refundable tax under Part IV of the Tax Act, at the rate of 33 1⁄3%
of the dividends received or deemed to be received on the Class A Shares to the extent that such
dividends are deductible in computing taxable income.
Disposition of Class A Shares
The disposition or deemed disposition of the Class A Shares by a holder will generally result
in a capital gain (or loss) equal to the amount by which the proceeds of disposition exceed (or are
exceeded by) the aggregate of the holder’s adjusted cost base thereof and any reasonable costs of
disposition. The cost to a holder of a Class A Share acquired on the exchange of a subscription receipt
will be the amount paid by that holder for the subscription receipt. The adjusted cost base of a
holder’s Class A Shares will be determined by averaging the cost of Class A Shares acquired on the
exchange of subscription receipts with the adjusted cost base of other Class A Shares, if any, held by

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the holder as capital property at the time of the exchange. See “Taxation of Capital Gains and Capital
Losses” below.
Taxation of Capital Gains and Capital Losses
Generally, a holder of a security is required to include in computing its income for a taxation
year one-half of the amount of any capital gain (the “taxable capital gain”). A holder of a security may
deduct one-half of the amount of any capital loss (the “allowable capital loss”) realized in a taxation
year from taxable capital gains realized by the holder in such year, subject to and in accordance with
rules contained in the Tax Act. Any allowable capital losses in excess of taxable capital gains for the
year of disposition generally may be carried back up to three taxation years or carried forward
indefinitely and deducted against taxable capital gains in such other years to the extent and under the
circumstances described in the Tax Act. Any capital loss resulting from the disposition of Class A
Shares may, in certain circumstances, be reduced by the amount of dividends previously received or
deemed to be received on Class A Shares, to the extent and under the circumstances described in the
Tax Act.
Capital gains realized by a holder of a security who is an individual or trust, other than certain
specified trusts, may give rise to alternative minimum tax under the Tax Act.
A holder of a security that is a “Canadian-controlled private corporation” (as defined in the
Tax Act), may be liable to pay an additional refundable tax of 6 2⁄3% on some types of income,
including interest and taxable capital gains, and possibly the dividend equivalent amount.
Taxation in the Netherlands
General
This tax paragraph contains a general overview of the Netherlands tax consequences of the
holding of the Class A Shares of the Company listed on the Eurolist and the TSX by shareholders, tax
resident in the Netherlands. Where this paragraph uses the term tax resident of the Netherlands, this
includes people tax resident in the Netherlands by fiction and persons who have opted for tax
treatment as a Dutch resident of the Netherlands.
This tax paragraph does not discuss all the tax consequences that may be relevant to the
shareholders in the light of their particular circumstances or to shareholders who are subject to special
treatment under applicable law, nor is it intended to cover all categories of investors. More explicitly,
it does not describe the possible tax consequences for shareholders who are not tax resident in the
Netherlands.
Shareholders should therefore consult their tax advisors regarding their individual
particular tax consequences of the merger and the holding of the Class A Shares.
This tax paragraph is based on the confirmation by Management of the Company that the
Company is not tax resident in the Netherlands, and is tax resident in Canada.
The tax paragraph is based on the Dutch laws of 2007, applicable at the date of this
Prospectus. These laws are subject to change, sometimes with retroactive effect. Changes in the
applicable laws may invalidate this tax paragraph and this tax paragraph will not be updated to reflect
such subsequent changes. In this tax paragraph, Dutch legal concepts are expressed in English terms
and not in their original Dutch terms. Where indicated in italics, Dutch equivalents of such English
terms have been given.

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Individual income tax consequences for individuals tax resident in the Netherlands
Income and capital gains from the Class A Shares may be subject to taxation as “income from
work and dwelling” (inkomsten uit werk en woning, “Box I”), “income from a substantial interest”
(inkomen uit aanmerkelijk belang, “Box II”) or “income from savings and investment” (inkomen uit
sparen en beleggen, “Box III”).
Box I. Income and capital gains derived from the Class A Shares are taxable in Box I at
progressive rates up to 52% if they form part of the “profit from an enterprise” (winst uit een
onderneming) of the Shareholder or part of the “taxable result from miscellaneous activities”
(resultaat uit overige werkzaamheden) as defined in the Income Tax Act 2001 (Wet
inkomstenbelasting 2001)). The income and capital gains from the Class A Shares qualify as profit
from an enterprise if the Class A Shares are attributable to the assets of an enterprise from which the
Shareholder derives profits as an entrepreneur (ondernemer) or pursuant to a co-entitlement to the net
worth of such enterprise other than as an entrepreneur or a Shareholder.
Box II. If income and capital gains derived from the Class A Shares are not subject to taxation
in Box I, and if the Shareholder has a “substantial interest” in the Company, then such income and
capital gains are taxable at a rate of 25% (please note that for the year 2007 a reduced rate of 22%
applies on the first € 250,000 substantial interest income).
A Shareholder has a “substantial interest” in the Company if such holder, alone or together
with his partner has, or if certain relatives of the Shareholder or his partner have, directly or indirectly:
• the ownership of, or certain rights over, any class of shares representing at least 5% of
the total issued and outstanding share capital or of any class of Shares;
• rights to directly or indirectly acquire any class of Shares, whether or not already
issued, representing at least 5% of the total issued and outstanding share capital or of
any class of Shares; and
• profit-sharing certificates for at least 5% of the annual profit or at least 5% of the
liquidation proceeds.
Special provisions apply in specific situations, such as to Class A Shares used to form a part
of a substantial interest.
Box III. If the income and capital gains derived from the Class A Shares are not subject to
taxation in Box I or II, then tax is imposed on the “fictitious yield” of the Class A Shares under the
rules of Box III. The “fictitious yield” is calculated as 4% of the average net value of the assets and
liabilities (including the Class A Shares) that are taxed under the rules of Box III, as measured at the
beginning and end of every calendar year. The tax rate on the “fictitious yield” is 30%.
Canadian tax withheld on dividend distributions on Shares held by individuals resident in the
Netherlands - to the extent such withholding is allowed under the Canada-Netherlands Income Tax
Convention - can in principle be credited against Netherlands individual income tax.
Corporate income tax consequences for entities tax resident in the Netherlands
The entities tax resident in the Netherlands subject to Dutch corporate income tax are:
• public limited liability companies, private limited liability companies and other
companies the capital of which is entirely or partly divided into shares;
• cooperatives and cooperative societies;

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• mutual insurance companies and associations that operate as insurer or credit
institution on a mutual basis;
• any association and other legal entity not mentioned above (unless of a public law
nature), if and to the extent they carry on an enterprise;
• mutual funds; and
• specified enterprises of public corporations.
In general, entities resident in the Netherlands are subject to taxation on any (deemed) income
or capital gains from the Class A Shares. The rate of corporate income tax is 25.5 %, with a rate of
20.0% applying to the first €25,000 of taxable profits and a rate of 23.5% applying to the second €
35,000 of taxable profits. The tax consequences for corporate entities which are not subject to, or
which are exempt from corporate income tax are not discussed in this tax paragraph.
Income and capital gains from the Class A Shares are generally exempt from corporate
income tax under the “participation exemption” if the entity holds at least 5% of the nominal paid-up
share capital and a number of other requirements are met, e.g.:
- the assets of the company do not directly or indirectly, predominantly consist (more than
50%) of free portfolio investments or
- the consolidated (taking into account only shareholdings of at least 5% and taking into
account fair market values) assets of the company consist for at least 90% of immovable
property or
- the effective tax on profits rate due of the company, calculated in accordance with Dutch tax
rules, is at least 10%.
Canadian tax withheld on dividend distributions on shares held by entities resident in the
Netherlands – insofar as such withholding is allowed under the Canada-Netherlands Income Tax
Convention - can in principle be credited against Netherlands corporate income tax, unless the
dividend income is exempt from Netherlands corporate income tax.
Other tax consequences
Gift tax and inheritance tax
Gift and inheritance tax (recht van successie, recht van schenking and recht van overgang) is
levied from the donee or heir. Generally, gift and inheritance tax is due if the Class A Shares form
part of a gift or inheritance from a tax resident in the Netherlands (individual or legal entity). No tax is
generally due if the Class A Shares form part of a gift or inheritance from a non-resident, unless an
exception applies, such as if the donor or deceased was a tax resident in the Netherlands within a
certain period prior to the gift or inheritance. Tax may also become due where the Class A Shares are
attributable to a Dutch permanent establishment or permanent representative of the deceased or donor.
Value added tax
Share transactions are normally exempt from value added tax. Value added tax is not due on
the issuance of Class A Shares, on dividends or other similar payments, such as repayment of capital.
Other taxes and duties
No Dutch capital duty or other Netherlands taxes or duties will be due by or on behalf of a
holder of Class A Shares in respect or in connection with the sale and transfer of Class A Shares or in

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respect of any contribution or deemed contribution to the share capital of the Company.
Residence
A holder of the ordinary shares will not become or be deemed to become a resident of the
Netherlands solely by reason of holding the ordinary shares.
27. DUTCH COLLECTIVE INVESTMENT SCHEMES LICENSE
Currently, the Company is operating in Canada, United States, the Netherlands and Germany.
The Company is licensed to operate as an investment institution (“beleggingsinstelling”) as referred to
in Article 2:65 of the Financial Supervision Act. Its licence to operate as an investment institution
pursuant to the Financial Supervision Act is available for inspection at its office (located in Halifax)
and can be downloaded from www.homburginvest.com. Anyone may request a printed copy of the
licence, which will be provided free of charge. As an investment institution, the Company is subject to
supervision by the AFM. Homburg complies with the Financial Supervision Act and all rules
promulgated thereunder.
28. AUDITORS, TRANSFER AGENT AND REGISTRAR
The Company’s auditors are Grant Thornton LLP at its offices located at 2000 Barrington
Street, Suite 1100 Cogswell Tower, Halifax, Nova Scotia, B3J 3K1.
The transfer agent and registrar for the Company’s shares is CIBC Mellon Trust Company at
its offices located at 1660 Hollis Street, Centennial Building, 4th Floor, Halifax, Nova Scotia, B3J
1V7.
29. MATERIAL CONTRACTS
The material contracts entered into or to be entered into by Homburg in connection with the
Offering and the Offer for Alexis Nihon are as follows:
(a) the Underwriting Agreement referred to in Chapter 21 “Plan of Distribution of the New
Shares”;
(b) the Support Agreement referred to in Chapter 15 “The Alexis Nihon Acquisition”;
(c) the Cominar Asset Sale Agreement referred to in Chapter 15 “The Alexis Nihon
Acquisition”.
A copy of each of the foregoing agreements is or will be available electronically on SEDAR
at www.sedar.com. Copies of the documents may also be obtained on request without charge from the
Secretary of Homburg Invest Inc. at Suite 600, 1741 Brunswick Street, Halifax, Nova Scotia, B3J
3X8 (telephone: +1 902 468-3395).

30. INTEREST OF EXPERTS
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Certain legal matters relating to the Class A Shares has been passed upon at the date of
closing of the Offering on behalf of the Company by Osler, Hoskin & Harcourt LLP and on behalf of
the Underwriters by McCarthy Tétrault LLP. The partners and associates of Osler, Hoskin & Harcourt
LLP, as a group, and the partners and associates of McCarthy Tétrault LLP, as a group, own, directly
or indirectly, less than 1% of the outstanding Class A Shares.
At the date hereof, partners of Grant Thornton LLP, the auditors of the Company, own,
directly or indirectly, less than 1% of the Class A Shares.
31. PURCHASERS’ STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION
Securities legislation in certain of the provinces and territories of Canada provides purchasers
with the right to withdraw from an agreement to purchase securities. This right may be exercised
within two business days after receipt or deemed receipt of a prospectus and any amendment. In
several of the provinces and territories, the securities legislation further provides a purchaser with
remedies for rescission, or, in some jurisdictions, damages if the prospectus and any amendment
contains a misrepresentation or is not delivered to the purchaser, provided that the remedies for
rescission or damages are exercised by the purchaser within the time limit prescribed by the securities
legislation of the purchaser’s province or territory. The purchaser should refer to any applicable
provisions of the securities legislation of the purchaser’s province or territory for the particulars of
these rights or consult with a legal adviser.

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32. INDEX TO FINANCIAL STATEMENTS
33. Consent of Grant Thornton LLP
34. Audited Consolidated Annual Financial Statements of Homburg for the Financial Year Ended
December 31, 2006, prepared in accordance with Canadian GAAP
35. Audited Consolidated Annual Financial Statements of Homburg for the Financial Year Ended
December 31, 2006 and 31 December 2005, prepared in accordance with IFRS
36. Unaudited Consolidated Interim Financial Statements of Homburg, 31 March 2007,
prepared in accordance with Canadian GAAP
37. Management´s Discussion and Analysis of Operations and Financial Condition of Homburg,
Three Months ended March 31, 2007, prepared in accordance with Canadian GAAP
38. Unaudited Consolidated Interim Financial Statements of Homburg, 31 March 2007,
prepared in accordance with IFRS
39. Audited Consolidated Financial Statements of Alexis Nihon for the Years ended December
31, 2006 and 2005, prepared in accordance with Canadian GAAP
40. Schedule of Selected Financial Information of Alexis Nihon for the year ended December 31,
2006 and the Three-Month Period Ended March 31, 2007
41. Unaudited Consolidated Interim Financial Statements of Alexis Nihon, 31 March 2007,
prepared in accordance with Canadian GAAP
42. Unaudited Pro Forma Combined Financial Statements of Homburg for the Year ended
December 2006 and the Three-Month Period ended March 31, 2007

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33. CONSENT OF GRANT THORNTON LLP
We have read the prospectus of Homburg Invest Inc. (the “Company”) dated July 5, 2007 relating
to the listing of Class A Subordinated Voting Share of the Company on the Eurolist by Euronext
Amsterdam. We have complied with Canadian generally accepted standards for an auditor’s
involvement with offering documents.
We consent to the incorporation by reference in the above-mentioned prospectus of our auditor’s
report to the shareholders of the Company on the consolidated balance sheets of the Company as at
December 31, 2005 and 2004, and the consolidated statements of earnings, retained earnings and
cash flows for each of the years in the two-year period ended December 31, 2005 prepared in
accordance with Canadian generally accepted accounting principles. Our report is dated February
21, 2006.
We consent to the incorporation by reference in the above-mentioned prospectus of our auditor’s
report to the shareholders of the Company on the consolidated balance sheets of the Company as at
December 31, 2005 and 2004, and the consolidated statements of earnings, changes in equity and
cash flows for each of the years in the two-year period ended December 31, 2005 prepared in
accordance with International Financial Reporting Standards. Our report is dated February 21,
2006.
We consent to the inclusion in the above-mentioned prospectus of our auditor’s report to the
shareholders of the Company on the consolidated balance sheets of the Company as at December
31, 2006 and 2005, and the consolidated statements of earnings, deficit and cash flows for each of
the years in the two-year period ended December 31, 2006 prepared in accordance with Canadian
generally accepted accounting principles. Our report is dated March 5, 2007.
We also consent to the inclusion in the above-mentioned prospectus of our auditor’s report to the
shareholders of the Company on the consolidated balance sheets of the Company as at December
31, 2006 and 2005, and the consolidated statements of earnings, changes in equity and cash flows
for each of the years in the two-year period ended December 31, 2006 prepared in accordance with
International Financial Reporting Standards. Our report is dated March 5, 2007.
Halifax, Nova Scotia
July 5, 2007 Chartered Accountants

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(signed) GRANT THORNTON LLP

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(signed) GRANT THORNTON LLP

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36. UNAUDITED CONSOLIDTATED INTERIM FINANCIAL STATEMENTS OF
HOMBURG,3I MARC}I2007, PREPARED IN ACCORDANCE \ryITH
CANADIAN GAAP

- 184 -
Homburg Invest Inc.
Consolidated Interim Financial Statements
Canadian GAAP
(Unaudited - Prepared by Management)
March 31,2007

Contents
Consolidated Interim Balance Sheet
- 185 -
Consolidated lnterim Statement of Earnings
Consolidated Interim Statement of Comprehensive lncome
Consolidated lnterim Statement of Accumulated Other
Gomprehensive Income (Loss)
Gonsolidated Interim Statement of (Deficit) Retained Eamings
Consolidated lnterim Statement of Cash Flows
Notes to Canadian GAAP Consolidated Interim Financial Statements

Homburg Invest Inc.
Consolidated Interim Balance Sheet
(Unaudited - Prepared by Management)
ICAD $ thousands except per share amounts)
March 31
2997
December 31
2006
(Audited)
Assets
Investment properties (Note 6)
$ 1,752,957 $ 1,696,295
Development properties (Note 7)
292,347
257,134
Long term investments (Note 11)
140,421
48,1 90
Intangible assets (Note 9)
48,603
46,976
Restricted cash (Note 8)
45,653
20,892
Cash and cash equivalents
40,303
66,743
Receivables and other (Note 10)
37,465
57,799
Currency guarantee receivable (Note 12)
3.686
s 2.361.435
3.483
$_2jw-ín
Llabllities
Long term debt (Note l2)
Accounts payable and other liabilities (Note 14)
Construction financing (Note 13)
Future income taxes (Note 16)
Derivative instrument liabili$ (Note 17)
lntangible liabilities (Note 9)
Shareholders' Equity (Note 15)
Commitments (Note 20)
Contingent liabilities (Note 25)
Indemnities (Note 26)
Subsequent events (Note 27)
Approved by the Board, MaY 10, 2007
"Signed"
Richard Homburg, Phzn., D. Comm'
Director
"Signed"
- 186 -
Edward P. Ovsenny
Director
$ I,645,014
202,812
91,151
53,941
1,423
_. 684
1.995.025
366.410
$13!l4l!
$ 1,599,780
135,576
91,201
53,095
2,180
732
1.882.564
314.948,
$:ugl.5n
See accompanying notes lo these consolidated interim financial statements prepared under Canadian GMP.
Interim Finaniialltatements prepared under International Financial Reporting Standards are also available.

Homburg Invest Inc.
Consolidated lnterim Statement of Earnings
Three Months Ended March 3l
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
Property revenue
Sale of properties developed for resale
Dividend income and distributions
Gain on fair value increase in investments
Other income
Gain on derivative instrument
Gain on sale of assets
lnterest on long term debt
Cost of sale of properties developed for resale
Depreciation and amortization
Property operating expenses
General and administrative
Earnings before income taxes
Income taxes (Note 16)
Net earnings
Eamings per share (Note l9)
Basic
Class A Subordinate voting
Class B MultiPle voting
Diluted
Class A Subordinate voting
Class B MultiPle voting
- 187 -
ZOOT 2006
$ 40,036 $
15,948
17,585
l,ggg
2,252
1,375
f ,25E
829
757
376 .
62.596
1,670
7.798
29.257
23,033
13,523
7,811
4,216
-. 1.912
50.495
12,101
3.499
$_9.602
$4.02
s0.07
$0.92
$!.07
8,949
3,607
3,330
1j62
17.048
12,209
3,766
$___9J43
See accompanying notes to these consolidated interim tinancial statements prepared under Canadian GAAP.
lnterim Financialltatements prepared under International Financial Reporting Standards are also available.
$0.10
$9.19
$949
$0.09

Homburg Invest lnc.
Gonsolidated Interim Statement of Comprehensive Income
Three Months Ended March 31
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts) - -
Net lncome
Other comprehensive income (loss)
Unrealized foreign currency translation
gains and losses
Gains and losses on financial instruments
designated as hedges of self
sustaining foreign oPerations
Other comprehensive income (loss)
Comprehensive income
Consotidated Interim Statement of Accumulated Other
Comprehens¡ve Income (Loss)
Three Months Ended March 3l
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
Accumulated other comprehensive income (loss)'
beginning of period
Other comprehensive íncome (loss)
Accumulated other comprehens¡ve income (loss)'
end of period
Consolidated Interim Statement of (Deficit)
Retained Earnings
Three Months Ended March 3l
(t]1ry!i!90 - Prepared by Manasement)
(CAD $ thousands except per share amounts)
(Deficit) retained eamings, beginning of period
As previously reportec
Change in accounting policy (Note 3)
(Deficit) retained earnings, as restated
Net income
Dividends
(Deficit) retained earnings, end of period
- 188 -
zo't 2006
$ 8.602 $ 8.443
(66)
, (106)
(721
$ - 8.430
2,487
2OO7 2006
zooT 2006
(3,305) $ 4,989
(4.785)
2.487
$__lq.g3o
î 6,177 $ (17,408)
H72l 2.487
$ 6.005 $ (14,921)
:-
(8,090) 4,989
8,602 8,443
(23.2e1) (10,667)
$_JAlEl $-- 27q0
See accompanying notes to these c.onsolidated interim financial statements prepared under Canadian GMP.
Interim Firianóal latements prepared under International Financial Report¡ng Standards are also available.

Homburg Invest lnc.
Gonsolidated Interim Statement of Cash Flows
Three Months Ended March 3l
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts) 2007 2006
Cash obtained from (used for)
Operatlng activltles
Net eamings
Items not affecting cash:
Gain on sale of assets
Gain on derivative instrument
Depreciation and amortization
Deferred rental income
Future and caPital income taxes
Fair value change in financial ¡nstruments
Foreign exchange gain
Change in non-cash working capital (Note 21)
Net cash from operating activities
Investlng activitles
lnvestment in investment properties
Proceeds on sale of investment properties
Decrease (increase) in restricted cash
Receipt of funds on dePosit
Purchase of long term investments
Increase in intangibles
Proceeds on sale of develoPment
properties
Investment in development properties
Net cash used in investing activities
Flnanclng activlties
lncrease in demand loans
Decrease in mortgages PaYable
Increase in mortgages PaYable
Proceeds from bonds
lncrease in deferred financing charges
Decrease in related party receivable
lssue of common shares
Dividends Paid
Increase (decrease) in construction financing
Net cash from financing activities
Decrease in cash and cash equivalents
Gash and cash equivalents, beglnning of perlod
Gash and cash equivalents, end of perlod
Supplemental cash flow information (Note 21)
- 189 -
8,602 $
(376)
(7571
8,012
(3,3271
1,459
12,2521
(138)
11,223
fi.309)
9.914
(5,936)
1,090
(24,7611
17,100
(96,443)
_ (29.236)
ll 38.r 86)
54,467
(5,905)
25,961
{1,641)
1,278
36,744
(9,022)
t50)
101.832
(26,440)
66.743
$___49,303
8,443
(7,7e8)
(1,670)
3,607
(208)
2,712
5,086
1.377
6.46,.3
(44,855)
32,342
(7,640)
(2,077)
43,538
ß2.882)
(61.574)
20,722
(e,627)
32,704
't12
1,596
639
(2,973)
_ 9.725
52,898
(2,213)
34.185
s 31.972
See accompanying notes to these consolidated interim financial statements prepared under Canadian GAAP.
lnterim Financialitatements prepared under International Financial Reporting Standards are also available'

- 190 -
Homburg lnvest lnc.
Notes to Canadian GA.AP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
l. Basis of flnancial statement presentation
These financial statements have been prepared under Canadian Generalfy Accepted Accounting Principles
("Canadian GAAP"). As Homburg Invest lnc. (the "Company") trades on the Euronext Amsterdam, the
Company also prepares a separate set of consolidated financial statements under International Financial
Reporting Standards ('IFRS'). The most significant financial differences between Canadian GAAP and IFRS
statements are the IFRS financial statements have recorded the investment properties and development
properties at fair value, depreciation has not been recorded on the investment properties and certain deferred
charges have not been capitalized.
2. Nature of operations
Homburg lnvest Inc., a corporation incorporated under the laws of Alberta, Canada, is listed on The Toronto
Stock Exchange ("TSX") and the Euronext Amsterdam ('AEX'). The Class A Subordinate Voting Shares trade
under the symbol 'Hll.A", and the Class B Multiple Voting Shares trade as "Hll.B" on the TSX and the Class A
Subordinate Voting Shares trade under the symbol "Hll" on the AEX.
The, principal place of business is 1741Brunswick Street, Suite 600, Halifax, Nova Scotia, Canada.
The Company and its subsidiaries lease, build and sell commercial and residential real estate ¡nterests located
in Canada, Germany, The Netherlands, and The United States of America.
3. Changes In accounting Policies
Effective January 1,2007, the Company adopted the Canadian Institute of Chartered Accountants ('CICA)
Handbook Section 1530 "Comprehensive Income", Section 3251 "Equity", Section 3855 "Financial Instruments
- Recognition and Measuremenf', and Section 3865 "Hedges". These standards have been adopted on a
proSpective basis; therefore prior periods have not been restated, except to reclassifl the cumulative currency
translation adjustment account balance as described under Comprehensive Income.
Comprehensive Income
The new standards introduce comprehensive income, consisting of net earnings and other comprehensive
income ('OCl). The main components of OCI for the Gompany are the change in the cumulative cunency
translation account related to self-sustaining foreign operations and the offsetting impact of hedges of the net
investment in self-sustaining foreign operations.
The cumulative changes in OCI are included in the accumulated other comprehensive income ("AOC|"), which
is shown as a separate category within shareholders' equity. The accumulated balance previously shown in the
cumulative currency translation adjustment account within shareholders' equity is now included in AOCI. A
statement of Accumulated Other Comprehensive Income is now included in the Company's consolidated
flnancial statements, providing the continuity of the AOCI balance.
The adoption of comprehensive income has been made in accordance with the transition provisíons. The effect
on the consolidated financial statements for the three months ended March 31,2007 has been a reclassification
of the March 31,2007 cumulative currency translation adjustment balance of $6,005 to AOCI (December 31,
2006 - $6,177; March 31,2006 - ($14,921)). In addition, the change in the cumulative foreign currency
transfation account for the three months ended March 31,2007 of ($172) (three months ended March 31, 2006
- 92,487) is now included in the Statement of Comprehensive Income.
Equity
The standard establishes criteria for the presentation of, and changes in, the various components of equity
during the reporting period. Retained earnings (deficit), AOCI, contributed surplus and share capital are
presented separately as well a reconciliation of the change in each of these components during the reporting
period.

- 191 -
Homburg Invest Inc.
Notes to Ganadian GAAP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
3. Changes in accounting policles (cont.)
Flnancial Instruments
i¡re stãnoaro establishes the recognition and measurement criteria for financial assets, financial liabilities and
áêrfuãìiuuj. All financial instrumentË, other than certain related party transactions, are required to be measured
;i ã'" uaiue on initial recognition. Transaction costs are expensed as incurred for financial instruments
ðl"iõin"o òr designated as trãto for trading. Transaction costs for all other financial instruments are capitalized.
Financial instruments are classified as either held for kading; available for sale; held to maturity; loans and
i""ãiuã¡i"J; òr other financiat tiabilities as these terms arg defined in the standard, and the classification
determines the measurement of the financial instrument in subsequent periods. The Company has the ability to
ãérìg"i, ,-financiat asiet or financial tiabitity as hetd for trading upon initial recognition so long as: the fair
uãluä ."n be reliably measured; and, the instiument has not beeñ transferred in a related party transaction in
*fricn ¡t had not beeh classified as held for trading before the transaction'
Financial assets and financial liabilities classified as held for hading are measured at fair value with any change
in fair values being recogni.è¿ ¡n n"t earnings. Financial assets dàssified as available for sale are measured at
iå¡,. *rré *¡tn ani ctraróà in fair vatues being recognized in ocl. Financial assets classified as either held to
,nãtui¡¡,, or loans and reËeivables; or financia'Í riabilities classified as other financial liabilities are measured at
àmorti/e¿ cost using the effective interest method of amortization.
Derivative instruments are carried on the consolidated balance sheet at fair value. Ghanges in the fair value of
derivative instruments aie recognized in net eamings with the exception of derivatives designated as effective
ñ"Ogèr of foreign "rrréñ"y ex'po.ure of a net inúestment in a foreign self-sustaining operation which are
recognized in OCl.
Casñ and cash equivalents, restricted cash, trade receivables and related party receivables. are designated as
ñ"rl roi ti"o¡ng ",io m"ãsuieo ai carrying vatue, which approximates.fair value due to the short-term nature of
irrãie instrum,i'nts. t-onj ieim ¡nvestmênti are designated as held for.trading and are measured.at fair value as
äeìãi*¡n"O by theiluËp"Ct¡uè quoted market priõe. Long term debt.demand loans, accounts payable and
other liabilitieð and consiruction financing are designated as other liabilities'
ine. aooption of the financial instruments standard has been made in accordance with the transition provisions.
iË *Ëi ôn tne f¡nanc¡al statements was to rectassiff $17,491.of defened financing costs to long term debt
to capitatize the transaction costs within the same catègory as_!!e 1e^l.ated debt. In addition, opening (deficit)
iétãiriCo èarnings at ¡añùàrv 1,zoo7 has been resrareda(ii¡y {99,47^01, less related income-taxes of $999' to
"dlü;itÈ õ"m-p"ny's nñé íerrir investments to fair value; anO 1i¡ by $e0 to recognize,the effqc! of the change
in ãmort¡zat¡on'of ðeteüe-o inån.ing costs from a straight-line basis over the term of the related debt to the
effective interest method.
Hedges
ïñeËtano"ro estabtishes the criteria that must be satisfied in order for hedge accounting to be applied and.the
åft-"i"ú.ïtõieacn ot ine permitted hedg-ing strategies. Hedge. acco.unting is discontinued prospectively when
the derivative no longei'quåñnàs às an eñ".i¡ve hedige, or the derivative is terminated or sold, or upon the sale
orlermination of the hedged item.
The Company's hedgin! of net investments in a self-sustaining foreign operation is accounted for by
;;;;g;i=ì.'g tn'e effect'riã iortion of foreign exchange gains or losses on.the hedging instruments in OGI and the
iñãtrËrivà p"rtion is r""obniìèJ in net e'arnings. TÏre ãmounts previously recognized. in Aocl are recognized in
;ñi"G *ñ"n tn"r" is a ieouction in the hedled net investmeñt as a reiult of a dilution or disposition of the net
investment.

- 192 -
Homburg Invest lnc.
Notes to Ganadian GA^AP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
4. Summary of significant accounting policles
a) General and consolldation
The consolidated financial statements are prepared in accordance with Canadian Generally Accepted
Accounting Principles. The Company's accounting policies and its financial disclosures are in accordance
with the recommendations of the Canadian Institute of Chartered Accountants (CICA).
For 2007 and 2006, these consolidated financial statements include the accounts of the Company's wholly
owned subsidiaries Homburg Shareco lnc., Homburg Invest (USA) Limited, and Homburg (US)
Incorporated, which are Canadian companies incorporated in the Province of Nova Scotia; and Homburg
Holdings (US) Inc,, which is incorporated in the State of Colorado; and Blackfoot Development Ltd.,
Homburg Harris Development Ltd., Gitadel West Development Ltd., Churchill Estates Development Ltd.,
Inverness Estates Development Ltd., High River Development Ltd., CP Development Ltd., Homburg Kai
Development Ltd., Holland Gardens Development Ltd., North Calgary Land Ltd., and Castello
Developments Ltd., which are Canadian companies incorporated in the Province of Alberta; and Homburg
Holding (NETH) Beheer B.V. which is incorporated ín The Netherlands. New wholly owned subsidiary,
Homburg Acquisítion Inc., a Canadian company incorporated in the Province of Alberta has been added
during 2007.
ln addition the Company's eighty-four (December 31, 2006 - seventy-five; March 31,2006 - sixty) wholly
owned limited partnerships and eight (December 31, 2006 - eight; March 31, 2006 - seven) partially owned
limited partnerships, which operate commercial and residential rental properties, are accounted for using
consolidation or proportionate consolidation as appropriate. Fifteen (December 31,2006 - ten; March 31,
2006 - foufl of these limited partnerships own corporate structures.
b) Properties
i) lnvestmentproperties
lnvestment properties held are carried at the lower of cost less accumulated depreciation and fair value.
Depreciation on buildings is provided on the straight-line basis over the estimated remaining useful lives of
the properties to a maximum of 60 years. Depreciation is determined with reference to each rental
property's carried value, remaining estimated useful life and residual value.
Tenant improvements subsequent to the initial tenant improvements are deferred and amortized over the
lives of the leases to which they relate.
Pavement and equipment are depreciated using the declining balance method at the annual rate of 8% and
20% respectivelY.
ii) Development properties
Development properties consist of properties which are under construction or in a major repositioning
program. These properties are recorded at the lower of cost and fair value.
iii) Construction properties being developed for resale
These properties are carried at the lower of cost and net realizable value. Net realizable value is the
estimated selling price in the ordinary course of business less selling costs and costs to complete
development.
iv) lmpairment
For investment properties, an impairment loss is recognized when a propefi's carrying value exceeds its
fair vatue. Properties are reviewed for impairment whenever events or changes in circumstances indicate
the carrying value may not be recoverable. The impaírment is measured as the amount by which the
carrying value exceeds the estimated fair value.

- 193 -
Homburg Invest Inc.
Notes to Ganadian GAAP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
4. Summary of significant accounting policies (cont.)
c) Gapitalization of costs
i) The Company capitalizes investment property acquisition costs incurred at the time of purchase.
ii¡ for development properties, the Company capitalizes all direct expenditures incurred in connection with the
acquisition, development, construction, and initial predetermined leasing period. ._These expenditures
consist of all direct costs and borrowing costs on debt directly attributable to a specific property, including
borrowing costs incurred on the debt prior to the full utilization of the debt for the project. Bonowing costs
are offset by any interest earned by the Company on borrowed funds prior to utilization. The development
period commences when expenditures are being incurred and activities necessary to prepare the asset for
its intended use are in progress. Income relating directly to development properties during the development
period is treated as a reduction of capitalized costs.
d) Revenue recognition
Revenue from development property is recognized upon the earlier of attaining a break-even point in
cashflow after debt-servicing, the expiration of a predetermined period of time following substantial
completion, or the attainment of substantial operations. Prior to this, the property is classified as a proper$
under construction and any revenue is applied to reduce development costs.
Management has determined that all of the Company's leases with its various tenants are operating leases.
Minimum rents are recognized on a straight-line basis over the terms of the related leases. The excess of
rents recognized over amounts contractually due is included in deferred rental receipts on the Company's
balance shieet. The leases also typically provide for tenant reimbursements of common area maintenance,
real estate taxes and other operating expenses, which are recognized as proper$ revenue in the period
earned.
Gains and losses from the sale of properties are recorded when the collection of the sale proceeds is
reasonably assured, and all other significant conditions respecting rights and ownership are met. Properties
which hav-e been sold, but for which these criteria have not been satisfied are included in Properties held for
resale. There were no such properties at December 31, 2007 or December 31, 2006.
e) Income taxes
The Company follows the tax liability method for determiníng income taxes. Under this method, future tax
âssets and tiabilities are determined according to differences between the carrying amounts and tax bases
of specific balance sheet items. Future tax assets and liabilities ere measured based on enacted or
substantively enacled tax rates and laws at the date of the financial statements for the years in which these
temporary differences are expected to reverse. Adjustments to these balances are recognized in earnings
as they occur.
f) Deferred leasing costs
The Company follows a policy of capitalizing the costs associatgd with leasing commissions. Deferred
leasing costs ãre amortized on a straight-line basis over the term of the related lease.

- 194 -
Homburg lnvest Inc.
Notes to Canadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
4. Summary of slgnificant accounting policies (cont.)
g) Deferred financing costs
-' pr¡or to January l, zool , external fees and costs incuned to obtain debt financing were deferred and
amortized on a straight line basis over the term of the respective indebtedness, or expensed in full in the
event the property säcuring the indebtedness was sold or the indebtedness's was discharged prior to its
maturity. ttre una-mortized-balance was included in deferred financing costs. Pursuantto CICA Handbook
i"a¡oni 3855, effectivã junurry l,zoor,financing costs are capitalized to the related asset or liability and
are measured at amortized costusing the effective interest rate method.
h) Cash and cash equivalents
Cash and cash equivalents include cash on hand and balances with banks, net of bank overdrafts and highly
liquid temporary money market instruments with original maturities of three months or less' Bank
bórrowings are considered to be financing activities.
i) Foreign currency
' ópeiations outs¡de of Canada are considered to be self-sustaining an_d u¡e their.primary currency for
,e.,Lãrãing substantially all transactions. The accounts of self-sustain[ng foreign subsidiaries are translated
uling tné cu6ent raté method, whereby assets and liabilities are translated at period-end exchange rates
lvhilã revenues and expenses are conúerted using average exchange rates.
.Gains
and losses arising on
translation of these subiidiaries are included in othér comprehensive income within shareholders' equity.
J) Stock options and contributed surplus
The Company has a stock-based compensation plan which isdescribed in Note 15 e). The Company
accounts for rts grant under this plan in accordance with the fair value-based method of accounting for
stock-based comþensation. There has been no compensation cost charged against income in the 2007 or
2006.
k) Use of estimates
The preparation of financial statements in conformity with--gene.rally accepted accounting principles req9...............i¡es
manågéiñónt to make estimates and assumptions ihat afféct the- reported amounts of assets and liabilities
ànd dlsdosures of contingent assets and liab¡lities at the date of the financial statements and the reported
amounts of the revenues-and expenses during the reporting period, Actual results could differ from those
estimates.
l) Long term Investments
Long term investments are classified as held for lrading and measured at fair value' Any change in fair
valu-e during the period is included in the determination of net eamings for the period'
m) Amortlzation of Intangibles
The values of the above-market and below-market leases are amortized to expense on a straight-line basis
over lre remaining t"irn oi t é respective lease. Lease origination costs and other lease related intangibles
ãre amortized to e-xpense on a straight-line basis over the remaining term of the respective lease.
n) Derivatlve financlal ¡nstruments
' ' ÍÉ Còrp.ny has entered into interest rate swaps in order. to manage the impact of fluctuating interest
rates on certain oritslióng term o"Ut, The curreniinterest rate swaps do not.qualify for hedge accounting
rnã "t" adjusted to fair va'iue and recognized in earnings in the reporting period'
o) FSnancial asset recognition
The Company applie-s setflement date accounting to the purchase and sale of financial assets. Under
set¡ement date accounting, the recognition or dereiognition of an asset occurs when the asset is delivered
to or by the ComPanY'

Homburg lnvest lnc.
Ndtes to Ganadian GAAP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31,2007
5. Business acqulsitions
During the period the following significant acquisitions occurred:
Cash
Acquisltlon Date Location Type of Property Shares tssued Conslderatio
n
March 31, 2007
February g,2OO7 The Netherlands Office (5 Properties)
December 31, 2006
(Audited)
òecember l, 2006 The Netherlands (2) Office (4 Properties)
June 22, 2006 The Netherlands Commercial(4 Properties)
May 1, 2006 Germany (2) Office
March 31,2006 Germany Retail
February 22,2006 Canada Food Service (9 properties)
-Lf100.000
$---9.1-9
-1,900'000 $-----4.309
$Jrc
-9180.000
-
-
-
$-g¿q
$==Æ
The shares issued as consideration for the acquisitions were issued at a value based on their market price
when the terms of the acquisition were agreed upon.
The following is a summary of the amounts assigned to each major asset and liability at the date of acquisition:
Investment Properties
f ntangible Assets
- 195 -
The Netherlands
$ 34,965
2,875
Receivables and other Assets 22'l
$--gg.ag!.
Mortgages payable assumed 29'203
Payábles and other liabilities 360
Net assets acquired $J3f3Ë
Vafue of shares issued 6.479
Cash consideration $ 2.019

Homburg Invest lnc.
Notes to Ganadian GAAP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
lnvestment ProPerties
Intangible Assets
Cash
Receivables and other Assets
Mortgages payable assumed
Non construction demand
loan
Future income taxes
assumed
Payables and other liabilities
Net assets acquired
Value of shares issued
Cash consideration
tne
Netherlands (2)
$ 57,604
3,377
134
61.115
46,593
_ 50.704
$ 10,411
6.103
$ 4.308
- 196 -
The
Netherlands
$ 191,652
8,286
50s
200.443
143,698
6.249
149.947
$ 50,496
33.320
$___jJJq
Germany (2)
$ 588,730
21,688
21,884
2.470
634.772
390,412
154,640
12,715
77.005
634.772
$ NIL
Germany
$ 39,63e
1,694
91
41.424
32,704
Canada
$ 9,005
383
61
9,449
10 236
32.714 236
$ 8,710 $ 9,213
$ Nlt $-g.zu $-9.213
Subsequent to the Germany(2) acquisition, 3,000,420 Class A Subordinate Voting Shares a-v_alue of
_with
$19,g9å were issued as repayineni of acquisition related debt. In the period ended March 31,2007
'
ñéõbi¡riioni ielat"o to the 'coistruction reiated costs of the Germany(2) property resulted in a decrease in the
i¡ãVãOÈJà.U other liabilities of $3,337 assumed as part of the acquisition. As a result, investment propedies
haüe been reduced by an equal amount during the current period.
In all cases, the operating results of the acquired properties are included in the consolidated statements of
earnings from the acquisition date'

Homburg lnvest Inc.
Notes to Ganadian GAAP Consolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
6. lnvestment ProPerties
Land
Buildings
Equipment
Paving
Tenant
improvements 66.420
8-JW
March 31
2007
Accumulated Net Book
Cost DePreciation Value
8 282,494 $ $ 282'491 $
1 ,437,006 31 ,085 I,'f05'921
1,571 397 1,174
14,931 2,011 12,920
Accumulated
Cost Depreciation
272,119 $ $
1,389,060 27 J62
767 363
11,794 1,786
December 31
2006
(Audited)
Net Book
Value
272,119
1,361,898
404
10,008
15.972 50.448 66.285 14.419 51.866
E____¿greg $_1J82.s57 $=Æpæ $-é3.@ $J99!¿s
ln the first quarter of 2007 investment properties were acquired at an aggregate co_s! 9f_ $64,978' The
å"qüiritiðñÀ wèie nnanced by new debt añd öther liabilities totaling $41,387, the issue of 2,603'731 Class A
Suóordinate Voting Shares for $17,655 and cash of $5'936.
ln 2006 investment properties were acquired at an aggregate cost of $911,514. The acquisitions were financed
6,-""* Jebt and other'tiabilities totalinó $822,793, me ¡ssue of 6,950,000 Class A Subordinate Voting Shares
for $39,423 and cash of $49,298.
lncluded in investment properties is one property (December 31, 2006 - one) with a carrying value of $627'864
iüñb"; ãr, zooo - S'Ozé,roo¡ on whicir there-is a purchase option exercisable by the tenant in 2020.
7. Development ProPerties
Land and property held for future development
Construction properties being developed for resale
March 3l
2007
$ 93,374
198.973
$_292:347
December 31
2006
(Audited)
$ 93,501
163.633
s 257.134
ln the first three months ol 2007, the company capitalized acquisition, development and._re.lated costs of
E¿d,zOs'loecember 31, 2006 - itZz,stl¡ öf wfi¡cn $4,780 (December 31, 2006 - $15,120) was interest
ð"pit"lii"à. These costs were financed by tÉe assumption of d_ebt in the- amount of $7,500 (December 31' 2006
- fSiSiõj,]ne iisue of 3SO,0OO (Decembêr 31,2006 - 250,000) Class A Subordinate Voting Shares for $2'439
d;õrËiC1, 2006 - $t,äZS¡ witn tne remainder in cash and the assumption of other liabilitþs. Also during
àõói ñu (De'cember sf ,'zoo'o - $19,990) of compteted pro.çcls were reclassified to investment properties and
Sis,o6â (Déò"ruer 91, 2006 - $27,744) were reclassified from Land held for future development to
Construction properties being developed for resale.
8. Restricted cash
- 197 -
Restricted cash includes deposits on real estate properties, refundable commitment fees and security deposits.

Homburg Invest Inc.
Notes to Canadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31,2007
9. Intanglble assets and liabilities
Intangibte assets are composed of the value of above-market leases, lease origination costs and other lease
related intangibles for income property acquisitions and are net of accumulated amortization of $4,747
(December 31, 2006 - $3,402). Amortization expense of $1,291 (March 31, 2006 - $209) is included in
depreciation and amortization expense.
lntangible liabilities are composed of the value of below-market leases for income property acquisitions and are
net of accumulated amortization of $333 (December 31, 2006 - $285).
10. Receivables and other
Trade receivables
Related pafi receivable (Note 18f)
Defened rental receipts (Note 4d)
Prepaíds
Defened leasíng costs, net of accumulated
amortization of $1,331 (2006 - $1,170)
Deferred financing costs, net of accumulated
amortization of $NlL (2006 - $1,990)
Bonds receivable
11. Long term ¡nvestments
Cedar Shopping Centers, lnc. and misc.
Alexis Nihon Real Estate Investment Trust
DIM Vastgoed N.V.
DIM Vastgoed N.V., October 2010 closing
- 198 -
March 31
2007
$ 14,581
3,088
t 3,g5g
2,903
3,134
December 31
2006
(Audited)
$ 19,705
4,366
10,532
1,498
3,224
13,962
4.512
$_9ru09 $==_5æ
March 31
2007
$e40$
98,106
22,826
December 31
2006
(Audited)
18.549 21.824
g 140.421 $_49,1_gg
:-
The Company holds 50,000 (December 31, 2006 - 50,000) common shares of Cedar Shopping Centers, Inc.
("Cedai') a real estate investment trust listed on the New York Stock Exchange {$!e: CDR). The investment
ii carried at fair value (December 31, 2006 canied at cost with a market value of $928).
The Company holds 5,274,539 (December 31, 2006 - NIL) units ofÁlexis Nihon Real Estate Investment Trust
(',Alexis Ñinoñ'1, a real estate investment trust traded in the TSX. The investment is carried at fair value and
ihe units are pieoged as security for a margin account with an outstanding bala¡ce of $54'467 at period end'
Subsequent tó peñod end, the iompany successfully acquired additional units of Alexis Nihon to increase their
holding's to appioximately B7o/o of the issued and outstanding units (Note 27d).
The Company's investment in DIM Vastgoed N.V. ('DlM") consists of deposit receipts representing 967,142
(Decembér 3i, 2006 - 967,142) shares of DlM, a real estate investment company listed_on the Euronext
Àmsterdam Stock Exchange and 72,360 (December 31, 2006 - 72,360) direct owned shares, The investment is
carried at fair value (December 31, 2006 carried at cost with a market value of $22,915).
994
25,372

Homburg Invest lnc.
Notes to Ganadian GAAP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31. 2007
11. Long term investments (cont.)
The Company's investment in DIM related to the October 2010 closing consists of deposit receipts representing
842,5A6 (Oeiember 31, 2006 - 835,123) shares of DIM which will be acquired October 1,2010. The Company
has tull vòting rights over these shares effective in the flrst quarter of 2006, however does not acquire legal title
until Octobei't, ZOIO. The Sellers will receive 6.5 Class A Subordinate Voting Shares of Homburg Invest Inc.
for each DIM share owned. The Sellers can elect, by December 16,2007, to receive their 2010 payment as a
Cash Price of USD $21.20 per share. The Sellers are entitled to all dividends paid on the DIM shares until the
date of sale, however the Company has voting control over those shares. Should the Sellers elect to receive
their payment in the form of Class A Subordinate Voting Shares, the Company has agreed to a dividend
guarântée entitting the Seller to a price adjustment equal to the amount by which the dividend_on 6.5 Homburg
invest Inc. shares exceeds the dividend on 1 DIM share cumulative for the period from 2006 through to
October 1, 2010. At March 31,2007, the Company has no cumulative liabílity (December 31,2006 - $460)
related to the cumulative dividend guarantee, No amount will be recorded as a dividend guarantee liability until
December 2007 when the Sellers éþct their method of payment in 2010, thus establishing the actual value of
any liability. The Company is carrying this investment at fair value (December 31, 2006 carried at cost of USD
$Z7.ZO, representing ihe Casn Price option payable in 2010, plus acquisition costs wilh a market value of
$18;410). ihis transaction has been included in the calculation of Diluted Eamings Per Share based on the
assumpiion that all DIM shareholders will receive Class A Subordinate Voting Shares as full payment.
12. Long term debt
Secured deþt
Mortgages payable (a)
Mortgage bonds paYable (b)
Unsecured debt
Corporate non-asset backed bonds (c)
Junior subordinated notes (d)
Deferred financing charges, net of accumulated
amortization of $2,133
- 199 -
March 3l
2007
$ 1,193,296
223.890
1.417.186
December 31
2006
(Audited)
81/154,254
223.685
1.377.939
181,535 160,015
61.651 61.826
243.186 221.841
I,660,372 1,599,780
fi5.358)
$=_-!,g4g.ua
$ 1.599.780
Long term debt has both fixed and variable interest rates, A! period end the weighted average interest rate for
all long term debt was 5.751% (December 31, 2006 '5'713o/o).

Homburg Invest Inc.
Notes to Canadian GAAP Gonsolidated Interim Financial Statements
(GAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31. 2007
12. Long term debt (cont.)
Normal principal installments and principal maturities are as follows;
Normal Principal Principal Bonds and Junior
lnstallments Maturities subordinated notes Total
2007 - remainder of year $ 15,842 $ 52,125 $ $ 67,967
19,555 10,705 30,260
23,504 214 19,689 43,407
22,883 12,920 46,241 82,044
28,366 16,937 61,686 106,989
2008
2009
2010
2011
Subsequent years
990.242 339,463 1.329.705
$_11!@ $___1*993.143 $_4!iL9Z9 $_1q09j'72
It is the Company's intention to seek renewals of the mortgage principal maturities at market rates.
a) Mortgages peyable
Mortgages payable are secured by a pledge of specific investment properties and an assignment of specific
rents receivable, with maturity dates between 2007 and 2020. lncluded in mortgages payable are the following
foreign denominated amounts:
USD denominated
EURO denomínated
- 200 -
March 3l December 31
2007 2006
(Audited)
usD $_gé39 $__-___9.3s5
cAD $____g.gLz, $=_gJgL
EUR €_6sgé53 €_0€0.250
cAD $__æZg,3j!g $_1J47..s6q
The period end exchange rates have been used to translate the non-Canadian mortgages,

Homburg Invest Inc.
Notes to Ganadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
12. Long term debt (Gont)
b) Mortgage bonds payable
Bond
Series
HMBl
HMBl
HMB2
HM84
HMBS
HMB6
HMBT
Maturitv
December 15,2009
December 15, 2009
April25, 2010
November 30, 201 1
December 31,2011
June 30, 2012
June 30, 2012
- 201 -
Interest
Rate Amount
10.00o/o CAD $4,420
8.50% EUR €9,905
7.50o/o EUR €30,000
7.50o/o EUR €20,010
7.50o/o EUR €20,010
7.50o/o EUR €31.230
7.250/o EUR €31.230
March 3l
2007
$ 4,420
15,269
46,241
30,843
30,E43
48,137
48.137
$-eæ.8e0
December 31
2006
(Audited)
$ 4,420
15,255
46,198
30,814
30,814
48,092
48.092
$=:Æ
The Mortgage Bonds are seven year bonds issued in series and secured by a first or second charge over
spêcific aéséts and a corporate guarantee. The bonds mature between December 2009 and June 2012 and the
Company has the option to redeem any Series of mortgage bonds at their face amount anytim_e subsequent to
the fiith ánniversary of the issue of the bonds. The interest is payable semi-annually on June 30 and December
31. fncluded in the mortgage bonds are non-Canadian mortgage bonds in the amount of EUR e142,385
($219,470) (December 31, 2006 - EUR €142,385 ($219,265)). These amounts are translated at period end
exchange rates.
The Company has entered into guarantee arrangements on all series of mortgage bonds to
_maturity,
with a
company'uncjer the control of the Chairman and Ghief Executive Officer, Under the terms of the guarantee,
the Conìpany is protected from devaluation of the Canadian dollar against the Euro, to a maximum limit equal
to the faèe vãlue of each mortgage bond, and has relinquished any appreciation rights which may arise on the
future settlement of its Euro denominated Mortgage Bonds. The Mortgage Bonds, which are recorded at the
prevailing exchange rate at March 31,2007, reflect an increase of $3,686 (December 31, 2006 - $3,483) in
þrincipalãmount iepresenting a decrease in the Canadian dollar versus the Euro since the Mortgage Bonds
ivere'issued. This 93,686 increase (December 31,2006 - $3,483) has been ofüet by the currency guarantee
receivable which has been recorded as an asset.
The final setlement of the currency guarantee asset or obligation will take place at the earlier of the retirement
of the mortgage bonds or the¡r scheduled maturity. As a result of the guarantee, there is no earnings impact
related to changes in currency value of the Mortgage Bonds.

Homburg lnvest lnc.
Notes to Canadian GAAP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
12. Long term debt (Cont)
c) Corporate non-asset backed bonds
Bond Series Maturitv
HB8
HB9
HBlO
May 31, 2013
October 31,2013
February 15,2014
- 202 -
lnterest Rate
7.00o/o
7.00o/o
7.25o/o
Amount
EUR €50,010 $
EUR €6O,OOO
March 3l
2007
77,083 $
92,482
December 31
. 2006
(Audited)
77,012
83,003
EUR €7,770 11.s70
$_1gl_g!5 $ 160,015
The Corporate non-asset backed bonds are seven year bonds issued in series and secured by a corporate
guarantee. The bonds malure between May 2013 and February 2014 and the Company has the option to
iedeem any series of bonds at their face amount anytime subsequent to the fifth anniversary of the issue of the
bonds. The interest is payable semi-annually on June 30 and December 31. The bonds are issued in euros
and have been translated at period end exchange rates. Subsequent to period end, an additional EUR €53,748
ofseriesHBl0wasissued, AsatMarch3l,200T,theSeriesHBl0bondsarestill beingissuedtoamaximum
face value of €100,005.
d) Junior subordinated notes
The Junior subordinated notes require interest only payments until maturity in 2036. The notes, which consist
of EUR €25,000 and USD $20,000 have a fixed interest rate until 2016 and variable thereafter until maturity.
The Company has a redemption option effective in 2011 until maturity, and the outstanding balances are
translated at period end exchange rates.

Homburg lnvest lnc.
Notes to Ganadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
13. Gonstruction financing
The Company has arranged construction financing, which is demand in nature, for its development properties.
Aórrow¡né rates on thesJfinancings are at fixed oi variable market rates, the weighted average. interest rate for
all consfúction financing is 7.0570 (December 31, 2006 - 7.08%) . The Company las pledged its development
fioperties as security. -Upon comptetion of the properties it is the Company's intention to seek long le¡m
iinãncing at available mdrket ratei. Included in the balance is financing from related parties totaling $NlL
(December 31, 2006 - $4,426). (Note 189)
14. Accounts payable and other liabilities
- 203 -
March 3l
2007
Trade payables (Note 18e) $ 47,452
Non construction demand loans (a) 79,319
lncome taxes payable 2,497
Notes payable 1,529
Securiiy ãeposits
4,408
Deposii (Note 27d) 17'100
Loñg term payables (b) 25'504
Shaieholders of DIM Vastgoed N.V., due October 2010(c) 20'650
Prepaid rents and dePosits
44qq
$ 202.8',t2
December 31
2006
(Audited)
$ 51,403
25,077
2,200
1,773
5,068
25,481
20,650
3.924
$ 135.576
a) Non construction demand loans include: a payable bearing interest at US base ¡¿l¿ + 1o/o secured by
Oäposit certificates representing 949,862 Dllrl shares;and, a margin loan bearing interest al7;5o/o secured
by'the investment in únits of Aéxis Nihon (Note 11) . The_ f o¡ C9¡gt1tglion Demand loan payable related to
Oifr¡ sn"res is USD $21,500 ($24,851) (December 31,2006 -525,077) of obligations translated at períod
end exchange rates.
b) The long term payables include a bonus of $1,440 to be paid.on a scheduled development project up-on
iÉe eán¡erót the óorirptetion of a specific construction project, sale of the related property or June 30, 2008.
ift" bonur is payable in Class A Si¡bordinate Voting Shares with the number of shares determined based on
share value on the due date. Also included is €15,612 ($24,063) (December 31,2006 - $24,041)
representing the purchase price option on the remaining 6.63% of MoTo Objekt Campeon GmbH & Co KG
eierc¡sable-in tnè first quârter oÍ 20'12 and the account balances of the current 6.63% partners. This is
related to the 2006 Germany(2) acquisition as detailed in Note 5'
c) The DtM Vastgoed N.V. ('DlM") paygþle, relates to deposit certificates representing shares of DIM
ó'¡ta¡neO in tne firsi quarter of àOOe tôr'wñicn the Company does not make payment until October 2010 (See
Ñãìã f f l. The payatite represents the Cash Price option payable.under the Share Purchase Agreement of
USD 917,863 (be-cember 31, 2006 - $17,705) translated at the period end exchange rate.
The Company has available credit facilities of $25,800 of which $1r09q (December 31 , 2006 - $NlL) is being
utilized at nf arcn y , 2OO7 . $1 5,000 (December 31 , 2006 - $15,000) of the credit facilities is with a company
controlled by the Cha¡rman and Chief Executive Ofücer'

Homburg Invest Inc.
Notes to Ganadian GAAP Consolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
I 5. Shareholders' equitY
Deficit
Accumulated other comprehensive income (a)
Share capital (b)
Gontributed surplus(d)
a) Accumulated other comprehensive lncome
- 204 -
March 3l
2007
December 31
2096
(Audited)
$ (22,779) $ (3,305)
6.005 6.'177
(16,774) 2,872
382,780 311,160
404 - 916
$_t09é1ll $-3L4É4!!
Accumulated other comprehensive income represents the unrecognized exchange adjustment on the net
assets of the Companyis subsidiaries that operate in the United States of America, Germany and The
Netherlands. The chang-e for the period reflects the impact of currency movements during the period on these
net assets.
The rates of exchange in effect on March 31,2007 was $1.00 USD = $1.16 CAD and €1.00 EUR = $1.54 CAD
(December 31, 2006-$1.00 USD = $1.17 GAD and € 1.00 EUR = $1.54 CAD). The av_ef1g9 rate of exchange
iorthe first quarter of 2007 was $1.00 USD = $1.17 CAD and € 1.00 EUR = $1.54 CAD (March 31, 2006'
$1.00 USD = $1.16 GAD and € 1.00 EUR = $1.39 CAD).
b) Share capital
The Gompany is authorized to issue an unlimited number of Class A Subordinate Voting Sha1gs ("Class A'), an
unlimited'nuñrber of Class B Multiple Voting Shares ("Class B"), an unlimited number of Class A Preferred
Shares ("Preferred"), issuable in sèries and an unlimited number of Class B Preferred Shares ("Prefened"),
issuable in series.
Holders of Class A shares shall be entitled to receive notice ol to attend and to vote at all meetings of the
shareholders of the Company, voting together with holders of Class B shares, except for meetings at which only
holders of a specified clãss ór serieõ are entitled to vote. Class A shares shall be entitled to one vote for each
Class A share held.
Holders of Class B shares shall be entitled to receive notice of, to attend and to vote at all meetings of the
shareholders of the Gompany, voting together with holders of Glass A shares, except for meetings at which only
holders of a specified cËss ór serieè are entitled to vote. Class B shares shall be entitled to twenty-five votes
for each Class B share held.
Class A shares will be convertible into Class B shares ¡n certa¡n limited circumstances involving offers made to
all or substantially all of the holders of Class B shares.
Dividends are payable on Class A shares and Class B shares when declared by the Board of Directors. The
Glass A and Class B shares rank equally in dividend eligibility.
preferred shares may be issued from time to time in one or more series, each series comprising the number of
snãrei, designationsl rights, privileges, restrictions and conditions which the Board of Directors determines by
resolutíon pr-ior to issua-nce. ' Prefðrred shares are non-voting and rank in priority to the Class A and Class B
shares with respect to dividends and distribution upon dissolution. No Preferred shares have been issued.

Homburg lnvest Inc.
Notes to Canadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
f 5. Shareholders'equitY (cont.)
The following table sets forth the partículars of the issued and outstanding shares of the Company:
lssued and outstanding at
December 31, 2005
Exercise of options
Acquisition of properties (Notes 5, 6 & 7)
Repayment of acquisition related debt
Acquisition of investment
Public share issue (c)
lssue costs, net of income taxes
Dividend reinvestment Plan
lssued and outstanding at
December 31, 2006
Exercise of oPtions
Acquisition of properties (Notes 5, 6 & 7 )
Private and other share issues (c)
lssue costs, net of income taxes
Dividend reinvestment Plan
lssued and outstanding at
March 31, 2007
c) Private placements and public issue
d) Contributed surPlus
Glass A Glass B
Subordinate MultiPle
Votino Shares Votinq Shares Stated Capital
(000's) (000's)
57,818
362
7,200
3,000
19
'14,286
4.405
87,090
1,339
2,954
6,500
2.168
100Æ1
March 3l
2007
$ 916
::
30,845 $ 161,670
52 1,200
40,798
19,395
66
68,406
(466)
20.091
30,897 311,160
618 4J26
20,095
33,205
(75)
14.269
31.515 I 382.780
ln January 2007, the Company issued 6,368,164 Glass A Subordinate Voting Shares at a price of $5'12
under a piivate placement. The placement was subject to board and regulatory approval'
In June 2006, the Company completed a public issue of 14,285,715 Class A Subordinate Voting Shares at a
price of EUR €3.50 ($4.SS¡ per share. The conversion to Canadian was based on the exchange rate in
äffect on the date the share proceeds were received. lssue costs of $3,536, less related income taxes of
51,212, have been netted against the gross proceeds.
Beginning of period
Applied lo stock options exercised
End of period
- 205 -
December 31
2006
(Audited)
$ 1,143
(512) e27)
$:lg $-91-o

Homburg Invest lnc.
Notes tdcanadian GAAP Consolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
15. Sharehotders' equitY (cont.)
e) Stock oPtions
Under the Company's Stock Option Plan, the Gompany may grant options to its directors and officers of the
Corp"ny and'emþloyees of the management'corñpany.-Slock Options may b9- granted under the
cãrñi- sto* ôpúãñ-nan on authoñzed but un'rssuèd Glass A subordinate Voting shares of the
Córi;ã"i. New Stoc[ Options may not be granted under the Plan on Class B Multiple Voting Shares of the
Company. nowever, iti"rè ireviousti granted Stock Options to purchase Class B-Multiple Voting
õñärãi that are outriañoinó "r" ãnà'unexerciéeð under the Plan. The maximum number of Class B Multþle
vöt¡irlsr.tãr* ¡s"uaúìð puiiuãnt to Stock options outstanding under the Plan shall not exceed that number
oiCrãr" B Multipte Votiåg Shares which are issuable pursuant to outstanding Class B ORtio¡¡ from time-toùmó
ttn" Class B snare ñrax¡mum). The maximum nùmber of Class A Subordinate Voting Shares ìssuable
Ëräuäni tó stocr opi¡onéäiJtàñoing unoer the ptan shatl not exceed 1oolo of the aggregate number of
issued and outstanoiñ! ctass A suboidinate Voting shares and.class B Multiple voting shares at the time
oïõr"nt láss the Ctasð B share maximum at the time of grant. Under the plan, the.exercise price of each
ãp.tòn jrr"¡ not be È; tha; ih" ðbs¡ng market price of thé Class A Subordinate Voting Shares on the TSX
oñ tne tasttrading Oãy pr¡òrto the datðof grandng of the stock option and an oPtion's maximum term is 10
yäars. Options aie gräiteo and vest at the discretion of the Board of Directors.
on March 31,2007, there were NIL Class B Multiple Voting share options granted but unexercised and
ãii ,sãa ð1".é R Suuordinate Voting Share options granted and. unexercised.
in"'óãrp"ny follows the recomme-ndations óf sect¡õn 3870 of the ClcA Handbook concerning stock Based
Cómpendatio'n anO Ottlei payments wherein fair value of each option grant.is estimated on the date of grant
ur¡nóin" È¡nom¡al ói sim¡tai option pricing model. The fair value of each option granted was estimated
u"inõ tir" exercise price and the following weighted average assumptions:
Expected volatilitY
Risk free interest rate
Expected lives
Expected dividend Yield
- 206 -
40.0o/o
3.31 - 3.65%
3.5 - 5 Years
5.60/o

Homburg Invest Inc.
Notes to Ganadian GAAP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
15. Shareholders' equlty (cont.)
A summary of the status of the Company's Stock Option Plan as at March 31,2007 and December 31, 2006
and changes during the periods ending on those dates is presented below.
Outstanding at beginning of period
Exercised
Expired
Outstanding at end of period
- 207 -
March 3l
2007
Shares Welghted-Average
(000'sl Exercise Price
2,528
(1,957)
571
$ 2.07
$ 1.85
$ 2.85
December 31
2006
(Audited)
Shares Weighted-Average
(000's) Exercjgq. Price
2,947 $ 2.11
(414) $ 2.35
(5) $ 2.85
$ 2.07
-zþ29.
Number of Shares Date of Expiration Exercise
Under Option Grant Date Price .
(000's)
__571 June 29. 2005 June 29.2010
2.85

Homburg lnvest lnc.
Notes to Ganadian GAAP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
16. lncome taxes
Income tax expense differs from the amounts which would be obtained by applying the Canadian basic federal
and provincial income tax rates and the rates for various foreign jurisdictions to earnings before income taxes.
These differences result from the following items:
Earnings before income taxes
Combined income tax rate
----33.00%
lncome taxes $ 3,993
lncrease (decrease) in income taxes resulting from:
Non-taxable portion of capital gains and
market value increase
, Large corporation tax
Canadian tax on foreign income
Effective rate change in Canadian jurisdiction
Foreign income taxed at different rates
lncome taxes:
Current income and capital taxes
Future income taxes
- 208 -
March 31
2007
$_12J1_Et $__12Æ
$Æ
(377)
90
436
l22sl
$ 2,130
r.369
$_3,4!D
March 31
2006
-------34.50.0/o
$ 4,212
$-3Jæ
(5e0)
144
$ 924
2.842
$=:Æ
Future income taxes primarily represent temporary timÍng differences resulting from income tax versus
accounting depreciation. The accumulated future income tax liability at March 31,2007 is $53,941 (December
31, 2006 - $53,095), The liability, which is primarily attributable to Investment properties, has been reduced by
a future income asset of 91,471 (December 31, 2006 - $1,172) related to share issue costs.
The Company has non-capital loss carry forwards in the amount of $34,192 (December 31, 2006 '524,674)
which will be used to reduce future taxable income. These losses begin to expire in 2026 and have been
included ín the calculation of future income taxes payable. The Company also has foreígn tax credit carry
fopards in the amount of $1,236 (December 31,2006 - $1,106) which will be used to reduce future foreign
taxes payable. These tax cred¡ts begin to expire in 2015 and have been included in the calculation of future
income taxes payable.

Homburg Invest Inc.
Notes to Canadian GAAP Consolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
17. Financlal instruments and risk management
Financial instruments
The Company does not acquire, hold or issue derivative financial instruments for trading purposes.
The Gompany holds the following long term financial instruments: mortgages, mortgage bonds, corporate nonasset
backed bonds, junior subordinated notes, long term payables and long term investments. The mortgages
have a fair vatue of $1,182,435 (December 31, 2006 - $1,161,E91). The principal amount of the mortgage
bonds have been guaranteed against currency fluctuatíons until maturity of the bonds in 2009 through 2012.
The total fair value of all bonds is $403,765 (December 31,2006 - $395,551). The currency guarantee
receivable is not susceptible to independent fair value valuation and as such valuation is carrying value. The
junior subordinated notes have a fair value of $58,734 (December 31,2006 - $61,826). The long term
investments are carried at their fair value,
The fair values of long term financial instruments are based upon discounted future cash flows using discount
rates that reflect current market conditions for instruments with similar terms and risks. Such fair value
estimates are not necessarily indicative of the amounts the Company might pay or receive in actual market
transactions. Potential taxes and other transaction costs have not been considered in estimating fair value, as
management has determined these costs to be impractical to estimate.
The Company's short-term financial instruments, comprising amounts receivable, cash, accounts payable and
accrued liabilities, demand loans and security deposits are carried at cost which, due to their short-term nature,
approximates their fair value.
Risk management
In the normal course of its business, the Company is exposed to a number of risks that can affect its operating
performance. These risks, and the actions taken to minimize them are discussed below.
a) Interest rate risk
- 209 -
The liabilities of the Company have fixed and floating interest rate components resulting in an exposure to
interest rate movements. The Company has minimized its interest rate risk through a liability management
policy. The Company allocates the matirrity of its debt over a period of approximately 30 years. In addition,
ihe iompany has entered ¡nto interest rate swaps maturing in October 2014 in order to manage the imp_act
of Ructuâting- interest rates on EUR €35,000 of its long term debt. Due to a reduction of interest rates in The
Netherlandiand Germany during the three months ended March 31, 2007, the impact on the statement of
earnings is revenue of $757 (March 31, 2006 - $1,670).
b) Credit risk
The Company's principal assets are commercial and residential buildings. Credit risk arises from the
possibitity thai teñants may not fulfill their lease obligations. The Company mitigates this credit risk by
þerformiñg credit checks on prospective tenants and ensuring that its tenant mix is diversified.

Homburg lnvest Inc.
Notes to Canadian GAAP Consolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
17. Financial Instruments and risk management (cont)
c) Currency risk
Cunency risk arises from assets and liabilities denominated in US Dollars or Euros. The Company mitigates
a portioli of its currency risk on mortgage bonds denominated in Euros through a guarantee agreement (See
Note 12). The Company has also established internal hedging relationships between Euro-denominated net
investments in foreign self-sustaining operations and Euro-denominated Bonds and Junior Subordinated
Notes. At March 31, 2007, EUR €75,000 (December 31, 2006 - €75,000) of the Company's net investmeni
was hedged with an equal amount of Euro-denominated debt. The hedge is considered to be an effective
hedge at March 31, 2007 and will be regularly reviewed to assess the continued effectiveness of the
hedging relationship. Cunency risk for other amounts denominated in US Dollars and Euros is mitigated by
US Dollar and Euro revenue and expense streams related to property rentals.
In support of the cunency guarantee the related party has ananged an arms length credit facility agreement.
d) Concentratíon risk
The Company's largest single tenant represents approximately 35% (March 31, 2006 - 18o/o) of property
revenue for the period. The risk relates to the abili$ of the Company to replace this revenue stream on a
¡mely basis while maintaining the related property costs. The Company mitigates this risk by entering into
long term leases; reviewing financial stability of tenants; obtaining security or guarantees where appropriate;
and geographic and industry segmentation of tenants. The Company also maintains their properties to a
quality standard that would support timely re-leasing of a property.
18, Related parly transactions
The Company is controlled by the Chairman and Chief Executive Officer through holding companies,
a) The Company has entered into agreements with companies commonly controlled by the Chairman and
Chief Executive Officer to provide various services. A summary of the various revenues and expenses
between related parties is as follows:
March 31 March s1
Rental revenue earned
Asset and construction management fees incurred
Property management fees incurred
lnsurance incurred
Service fees incuned
Property acquisition/disposal fees incurred
Mortgage bond guarantee fees incuned
Demand loan interest and fees incurred
Bond and other debt issue costs incuned
- 210 -
The transactions are recorded at exchange amounts.
$_l1gg)
$_Æ
$_41q
$ 2s1
$__2gg
$ 2*o¿z
$__925
$___ NlL
$___1.060
2007 2006
$___fiz)
$_!L4g
$-__32!_
$_Éq
$______L4Íl
$_3S00
$_928
$___93

Homburg lnvest lnc.
Notes to Canadian GAAP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31,2007
18. Related party transactions (cont)
- 211 -
b) The Gompany has approved a resolution authorizing the property manager, a company commonly
controlled by the Chairman and Chief Executive Officer, to operate trust accounts on its behalf as required
to conduct business ofthe Company.
c) Professional services of approximately $51 (March 31,2006 - $68) were purchased from a corporation of
which one of the Company's directors is affiliated.
d) The Company has entered into a guarantee arrangement for the principal and interest amounts of the
Mortgage Bonds payable to maturity, with a company under the control of the Chairman and Chief
Executive Officer, wherein it is protected against fluctuations in the Canadian dollar and the Euro (Note 12).
The cost of this guarantee per annum until maturity is 1.5% on the Series 1 Bonds, 2.0o/o on the Series 2
Bonds, and 1.60/o on the Series 4, Series 5, Series 6, and Series 7 Bonds.
e) Included in accounts payable are mortgage bond guarantee fees of $925 (December 31, 2006 - $792) and
management fees of 967 (December 31, 2006 - $71) payable to companies commonly controlled by the
Chairman and Chief Executive Officer, which are non-interest bearing and have no set terms of repayment.
f) The receivable of $3,088 (December 31, 2006 - $4,366) is from companies commonly controlled by the
Chairman and Chief Executive Officer, which is non-interest bearing and has no set terms of repayment.
g) The Company has borrowed construction financing in the amount of $NlL (December 31,2006 - $4,426)
from a company controlled by the Chairman and Ghief Executive Officer. This loan is ínterest only at a rate
of 8olo per annum.
h) A subsidiary of the Company has an indemnification agreement with a company controlled by the Chairman
and Chief Executive Off¡cer. The indemnification agreement, in the amount of $3,309 at March 31
(December 31 , 2006 - $3,1 1 3), calls for the full amount to be settled during the year.
i) On February 1,2007 the Company acquired an investment property from a company controlled by a
member of the board of directors for $ 990.
j) In January 2007, the Company issued 6,368,164 Ctass A Subordinate Voting Shares at a price of $5.12
under a piivate placement to a company commonly controlled by the Chairman and Chief Executive Officer.
The placement was subject to board and regulatory approval,

Homburg lnvest lnc.
Notes to Canadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
19. Earnings pershare
t'let eãminis ¡ier share has been calculated based on the weighted average number of shares outstanding as
follows:
Basic
Class A Subordinate Voting
Class B MultiPle Voting
Diluted
Glass A Subordinate Voting
Class B MultiPle Voting
The dilution consists of:
Class A
Exercise of options
Conversion of long term PaYable
Conversion of DIM PaYable
Conversion of Promissory note
Class B
Exercise of oPtions
March 31 March 31
2007 2006
(000's) (000's)
93,540 57,985
31.384 30.850
_J25.024. ____-_9Ê-835
99,662 63,068
31.384 31.326
-r:u.&9 -91,3e,1
321
224
5,477
6.022
-.-
1,124
246
3,631
82
5.083
The dilutive effect of outstanding stock options on earnings per share is based on the application of treasury
stock method. Under treasury stóck method, the proceeds from the exercise of such securities are assumed to
be used to purchase shares ofthe same class.
20. Commitments
a) The following is a schedule of the future minimum
subsidiary company.
2007 - remainder of year $
2008 $
2009 $
2010 $
- 212 -
476
lease payments on several operating leases of a
b) The Company and its subsidiaries have entered into various propefi management agreements, expiring
between 2010 and 2012. (Note 18a)
c) The Company has 6 construction projects underway to which it has signed commitments of $37'437'
76
68
39
26

Homburg Invest Inc.
Notes to Canadian GAAP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31,2007
21. Supplemental cash flow information
Change in non cash working capital
March 31 March 31
2007 2006
Receivables and other $ 4,524 $ (503)
Accounts payable and other liabilíties (5,803) 2,452
Deferred leasing costs 130) rc72)
$ .11.30s) $ 1,s77
Interest paid
Capital and income taxes paid
22. Rental income under operating leases
- 213 -
$_19i!29 $_____!tn
$_l¿u $=====3ig
The Company's operations consist of leasing commercial and residential real estate. The following is a
schedule by years of minimum future rentals on noncancelable operating leases having initial terms in excess
of one year:
2007 - remainder of the year $ I 12,878
2008 132,405
2009 131,218
2010 129,558
2011 130,299
Thereafter 944.136
$_1é90É94

Homburg lnvest Inc.
Notes to Ganadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31. 2007
23. Segmented Information
The Company owns a diverse portfolio of residential and commercial income-producing properties located in
Canada, The United States of America, Germany and The Netherlands. Sales and costs of properties
developed for resale relate to properties within Canada. The accounting policies used in the preparation of the
segmented information are the same as those described for the Company in Note 3 - Accounting Policies. The
Company primarily evaluates operating performance based on net operating income. As such, interest,
depreciaiioir and amortization, and general and administrative expenses have not been allocated to the
segments. All key decisions pertaining to these items are managed centrally. The following provides a
summary of key information of the Company's residential and commercial operating segments.
Three Months Ended
March 31, 2007
Property revenue
Operating expenses
Three Months Ended
March 31, 2006
Property revenue
Operating expenses
Three Months Ended
March 31,2007
Property revenue
Operating expenses
Three Months Ended
March 31, 2006
Property revenue
Operating expenses
Retail Industrial Office Resldentlal Total
$ 5,521 $ 8,253 $ 25,608 $ 654 $ 40,036
1.278 - 230 ?.390 318 4.216
ï-_--Æ $-ggg $ 29¿19 $i0 $-85.820
Retail
$ 4,346
- 1.247
$====3-9.99.
Netherlands
$ 9,661
429
$_9,æ
Netherlands
$ 3,282
.51
$_3.231_
- 214 -
lndustrial
$ 7,481
172
$_JJ09
Germany
$ 20,207
408
$_l_gJss
Germany
$ 5,367
29
$_g.Egq
Office
$ 5,134
1.596
$___3-538
Ganada
$ 8,974
2.837
$_gstz
Canada
$ 7,815
2.776
$=Æ
Residential
$ 624
315
$__399
US
$ 1,194
542
s 652
US
$ 1,121
474
$_Q47
Total
$ 17,585
3,330
$_1!.255
Total
$ 40,036
4.216
$_95.8æ
Total
$ 17,585
3.330
$____14.255

Homburg lnvest lnc.
Notes to Canadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31.2007
23. Segmented information (cont.)
March 31,2007
Investment properties
Mortgages payable
Mortgage bonds payable
December 31, 2006
(Audited)
Investment properties
Mortgages payable
Mortgage bonds payable
March 31, 2007
lnvestment properties
Mortgages payable
Mortgage bonds payable
December3l,2006
(Audited)
Retall
$_rc9,q!!9
$_!!ü1
$_52,fl2
Retail
$_1ru
$Æ
$-57J€E
- 215 -
lndustrial
$_994&1
$_919,ãs0
$_29;t!4
lndustrial
$__190J0ä
$_812.e50
$___ 29,688
Netherlands Germany
$_{93É10 $===ggz€Z,g
$_394.617 $_-__29!tl1
$: $_39,9€
Office
$___t 1l¡E.756
$__294é92
$_9ø9
Office
$l!-aq!Æ
SJÆ
$_i¿32
Netherlands Germany Canada
lnvestment properties $Æ $-993¿Qg LJW
Mortgages payable $13ru19 $-2.19-ã49 $:Æ5
Mortgage bonds payable $: $-3q.814 $--lgegz!.
Residential
$__14¿q!_
$_13.W
$_
Residential
$===Æ1
$____13tr
$:
Total
$_lz5a,s5z,
$_1L9!!.2e6
$_98¿21.
Total
$__Lq90.295
$_1*1E!,e84
$ 96.686
Ganada US Total
$-2Egg!-9 $ 22.746 $ 1.752.s57
$119,æ1 $_9,012 $_!,L9!!¿99
$_19 14 $: $_223ÆL
US Total
$_23.421 $Jggg¿gÕ
$=:_9É1 $_l*114.254
$- $ 223.685
At March 31,2007 Mortgage bonds payable total $223,890, exclusive of the currency guarantee receivable of
$3,6E6. Of this amount 9127 ,119 related to properties under development and funds intended for acquisitions
and development projects which will be located in Canada. The remaininS $96,771 is allocated to specific
segments above.
At December 31, 2006 Mortgage bonds payable total $223,685, exclusive of the currency guarantee receivable
of $3,483. Of this amount $126,999 related to properties under development and funds intended for
acquisitions and development projects which will be located in Canada. The remaining $96,686 is allocated to
specific segments above.
At March 31,2007, the Germany segment included one (December 31,2006 - two) tenants that individually
represented greater than 10% of total property revenue. These tenants individually represented 35%
(December 31 , 2006 - 28o/o and 1 1 %) of total property revenue for the period.

Homburg Invest lnc.
Notes to Ganadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
24. Interest in joint ventures
The Company, at March 31,2007 owns a partial interest in eight (December 31, 2006 - eight; March 31, 2006 -
seven) limited partnerships. The ownership percentages range from 50/o to 55.55ol0. These partnerships operate
commercial and residential rental properties.
These financial stetements reflect the Company's share of the assets, liabilities, revenue and expenses of the
limited partnerships in accordance with the principle of proportionate consolidation as follows:
Assets
Cash and cash equivalents
Dev elopment p roperties
Receivables and other
Deferred charges
Investment properties
Liabilities
Accounts payable and other liabilitíes
Security deposits and prepaid rent
Mortgages payable
Distribution payable
Revenue
Property revenue
Expenses
Property operating expenses
' General and administrative expenses
Mortgage interest
Depreciation and amortization
Gash flow
Net cash from operating activities
Net cash from financing activities
Net cash from investing activities
- 216 -
March 3l
2007
$ 1,426
16,331
389
350
December 31
2006
(Audited)
$ 2,059
15,054
684
750
8.448 8.374
$ 26.944 $_26.921
$ 1l,785 $
41
5,276
169
$_17_g!
March 3l
2007
$_429
$ 172
51
80
43
$------Ë9
$_202
$-{r5,!
$_í94)
1 1,889
JO
5,311
$___ï.236
March 31
2006
$_____g
$ 168
I
76
37
s 290
$____1_e5
$_Øl)
$ (e)

Homburg Invest lnc.
Notes to Canadian GAAP Gonsolidated lnterim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31, 2007
25. Contingent liabilities
a) There are claims which the Company is involved with, arising out of the ordinary course of business
operations. The Company's management does not consider the exposure to such litigation to be material,
although this cannot be predicted with certainty.
b) Specific subsidiaries of the Company have been advised of a pending potential transfer tax assessment. The
tax assessments, if issued would impose transfer tax on the acquisition of these properties by the subsidiaries.
The potential liability would be EUR €7,831 ($12,070) and would increase the cost of the applicable properties
should the Company be unsuccessful in defending the assessments. To date no assessments have been
received, The Gompany has reviewed this matter, has received legal advice, and believes it is not required to
pay the transfer tax on these acquisitions. Accordingly, the Company has not recorded any of the proposed
transfer tax in its consolidated financial statements.
26.lndemnities
The Company has agreed to indemnify its directors and officers in accordance with the Company's policies.
The Company maintains insurance policies that may provide coverage against certain claims.
27. Subsequent events
- 217 -
a) The Company is continuing the issuance of Series HB10 Bonds for maximum value of EUR €100,005
($154,144) bearing an annual¡nterest rateof 7.25o/o to be paid on a semi-annualbasis. To March 31,2007 EUR
€7,770 ($11,973) had been issued. The Bond issue was approved by the Board of Directors and the Company
has received regulatory approval. The proceeds from the issue will be used for general corporate purposes and
for future acquisitions.
b) The Company has entered into agreement to acquire an office building in the Netherlands for a purchase_
price of approximately EUR €36,550 ($56,000). The transaction is expected to close in the second quarter of
äOOZ anO will be financed with debt financing of approximately EUR €30,000 ($46,000) with the balance
payable in cash.
c) The Company has entered into agreement to sell a construction property in Canada which is being
devefoped foi reèale. The transaction is expected to close in the second quarter of 2007 with total proceeds of
approximately $34,000, which is in excess of the carrying value of the property.
d) The Company has acquired a total of 25,938,238 units of Alexis Nihon Real Estate lnvestment Trust ("Alexis
Nihon"¡. Thé aiquisition represents approximately 87o/o of the issued and outstanding units of the trust. The
units were acquíred for a total cost of approximately $482,000. The acquisition is being financed with an
acquisition bridge loan plus cash of approximately $65,000. The-Company has entered-into an agreement to
disþose of specìfic properties within Alexis Nihon, subject to the Company obtaining 100% ownership in Alexis
Nihon. The disposition of the specific properties is expected to be completed in the second or third quarter of
2007; would result in a net cash inflow of approximately $300,000 after payout of applicable secured debt and
taxes, which would be applied to reduce the balance of the acquisition bridge loan; and is secured by a deposit
in trust of $17,100 from the purchaser.

Homburg lnvest Inc.
Notes to Ganadian GAAP Gonsolidated Interim Financial Statements
(CAD $ thousands except per share amounts)
(Unaudited - Prepared by Management)
March 31,2007
27. Subsequent events
e) The Company has entered into a joint venture agreement on the ownershíp of nine shopping centres located
in the United States. Homburg will acquire an 80% interest in the joínt venture, with the properties valued at
approximately USD $170,000 ($196,500). The acquisition, which is subject to bo.a1d approval and due
ditigence, will be financed with approximately USD $107,000 ($124,000) of existing debt and the balance in
cash. The transaction is expected to close in the second or third quarter of 2007.
f) The Company has entered into agreement to sell a construction property in €anada which is being
devetoped. The transaction is expected to close in the second or third quarter o12007 with total proceeds of
approximately $377,000, which is in excess of the carrying value of the proper$.
g) The company has acquired an office building in the Netherlands for a total purchase price of EUR €9,300
[:it+,SOO¡. The iransaction was financed through the issuance o1284,210 Class A Subordinate Voting Shares,
vaf ued at EUR e1,157 ($1,760); financing of EUR €7,500 ($11,a1a); and the remainder in cash.
h) The Company has entered into an agreement to acquire a portfolio of ô3 propertìes located in Estonia,
Lätvia and Lithúania for a purchase price of approximately EUR €197,000 ($304,000). The transaction is
expected to close in the third quarter oÍ 2007 with debt financing for up to 80% of the aggregate purchase price'
i) The Company has filed a preliminary short form prospectus for a public offering of approximately_$200,000 of
éubscription reôeipts, each representing the right to rece¡ve one Class A Subordinate Voting Share of the
Company. The offering is subject to regulatory and stock exchange approval.
j) The Board of Directors has approved an increase ín the semi-annual dividend to $0.24 per share
commencing with the second semi-annual dividend in 2007 '
28. Gomparative flgures
- 218 -
Certain of the comparative figures have been reclassified to conform to the financial statement presentation
adopted for the current period.

- 219 -

- 220 -

- 221 -

- 222 -

- 223 -

- 224 -

- 225 -

- 226 -

- 227 -

- 228 -

- 229 -

- 230 -

- 231 -

- 232 -

- 233 -

- 234 -

- 235 -

- 236 -

- 237 -
UNAUDITED CONSOLIDATED INTERM FINACIAL STATEMENTS OF
HOMBURG,31 MARCH2007, PREPARED IN ACCORDA]\ICE \ryrTH IFRS

- 238 -
Homburg Invest Inc.
Gonsolidated Interim Financial Statements
International Financial Reporting Standards
(Unaudited - Prepared by Management)
March 31,2007

Contents
Consolidated Interim Balance Sheet
Consolidated Interim Statement of Eamings
- 239 -
Consolidated Interim Statement of Changes in Equi$
Consolidated lnterim Statement of Cash Flows
Notes to IFRS Consolidated lnterim Financial Statements

Homburg Invest Inc.
Consolidated Interim Balance Sheet
(Unaudited - Prepared by Management) March 31 December 31
icRo $ tnousanðs exceót per share amounts) . 2007 ,. ?909
(Audited)
Assets
Cash and cash equivalents
Receivables and other (Note 9)
Long term investments (Note 10)
Restricted cash (Note 8)
Development properties (Notes 3 & 7)
Investment properties (Notes 3 & 6)
Currency guarantee receivable (Note 11)
l-labllities
Accounts payable and other liabilities (Note 13)
Derivative instrument liability (Notes 3 & 16)
Construction financing (Note 12)
Long term debt (Note 11)
Defened income taxes (Note 15)
Shareholders' EquitY (Note 14)
Cor¡mitments (Note 19)
Contingent liabilities (Note 20)
Indemnities (Note 21)
Subcequent events (Note 22)
Appioved by the Board, MaY 10, 2007
" Signed "
Richard Homburg, Phzn., D. Comm.
Director
- 240 -
" Signed "
Edward P. OvsennY
Director
$ 40,303
25,811
140,421
45,653
337,155
2,034,027
3.686
$_?.9¿2,95s
8 202,812
1,423
91,151
1,650,943
109.970
2.0s6.299
570.757
$ z,gzug.q
$ 66,743
33,026
42,255
20,892
301,757
1,957,808
3.483
s 2.425.964
$ 135,576
2,1 80
91,201
1,588,523
104,480
1.921.960
504.004
çJA2þ.e64
Seeãccompanying notes to lhese consol¡dateed ¡nterim financial statemenls prepare! under Intemational Financial Reporting Standards'
lñte¡m nnanc¡al statement preparsd under Canadlan GAAP are also available

Homburg lnvest Inc.
Consolidated Interim Statement of Earnings
Three Months Ended March 31
(Unaudited - Prepared by Management)
ZOOT 2006
(CAD $ thousands except per share amountsì ., -- --,-.--
Property revenue
Sale of properties developed for resale
Unrealized valuation changes
Dividend income and distributions
Other income
Gain on derivative instrument
Realized valuation changes
Inteiest on long term debt
Cost of sale of properties developed for resale
Property operating expenses
General and administrative
Amortization
Earnings before income taxes
Income taxes (Note 15)
Net earnings
Earnings Per share (Note l8)
Basic
Class A Subordinate Voting
,Class B MultiPle Voting
Diluted
Class A Subordinate Voting
Ctass B Multiple Voting
- 241 -
$ 40,036
15,948
8,555
1,969
1,258
757
376
68.8sq
22,831
13,523
4,216
1,912
Note 4)
$ 17,585
1,593
1,375
829
1,670
7.798
30,850
8,636
3,330
1,162
377 413
_4AË9,
13.541
26,040 17,309
7.060 5.250
$ 18.980 $ 12.059
:-
$0.19
qÉ
$!1.14
$9.14,
$0.É,
g!.1
813
s0.'t!
see accompanying notes to these consol¡dateed interim financial stateme¡ts pr_€pared under Intemational F¡nancial Reporting Standards'
lnterim financ¡al slatement pr6pared under Canad¡an GAAP are also available

Homburg Invest lnc.
Consolidated Interim Statement of Changes in Equity
Year Ended December 3l
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
Balance December 3l' 2005
As previously reported
Change in accounting PolicY
(Note 4)
As restated
Net Earnings for the Period
Excrcise of options
Dividends ($0.30 per share)
Acquisitions
Repayment of acquisition
related debt
Dividend reinvestment Plan
lssue costs
Public share issue
Acquisition of investment
Applied to stock options
exercised
Current period foreign
currency feserve for foreign
self suslained operat¡ons
Balance December 31, 2006
Net,Earnings for the Period
Private and other share issues
Divi{ends ($0.1 I Per share)
Acquisitions
Dividend reinvestment Plan
lssue costs
Acq'.risition of investment
Exercise of oPtions
Applied to slock options
exercised
Current period foreign
çurrency reserve for foreign
self sustained operations
Balance March 31, 2007
Revaluation ShareCapital Contributed
Surplus Surplus
$ 32,994 $ 161,670 $ 1,143
32,994 161,670
973
40,798
19,395
20,091
(466)
68,406
AA
227
32,994 311 ,160
$-õs¡ $@
- 242 -
33,205
20,095
14,269
(75)
3'614
512
-9i6
$-g
1,143
(227)
(512)
Cumulative
Foreign
Currency
Translation
Account
$ (18,803)
(18,803)
Retained
Earnings
(As restated
Note 4)
$ 80,987
1,4n
82,464
94,766
(31,256)
Total
(As
restated
Note 4)
$ 257,991
1,477
259,468
94,766
973
(31,256)
40,798
19,395
20,091
(466)
68,406
oo
al 7A?
12,960 145,974
18,980 18,980
33,205
(23,2911 (23,2s1)
20,095
14,269
(75)
3,614
tll\ t¿4\
$-iz91g $_14Lg63 $_873¿EZ
See accompanying notes to lhese consolidateed interim ñnancial statements prepared under Intematlonal Flnancial Report¡ng standards'
lnterim financial statement prepared under Canad¡an GAAP are also available

Homburg Invest Inc.
Gonsolidated Interim Statement of Gash Flows
Three Months Ended March 3l
(Unaudited - Prepared by Management)
Operating activities
Net earnings
Adjustments for:
Realized valuation changes
Defened rental income
Unrealized valuation changes
Deferred and capital income taxes
Amortization
Gain on derivative instrument
Foreign exchange gain
Change in non-cash working capital (Note 23)
Net'cash from operating activities
Investing activltles
livestment in investment properties
Proceeds on sale of investment properties
Decrease (increase) in restricted cash
Receipt of funds on dePosit
lncrease in intangibles
Purchase of long term investments
hìvestment in development properties
Net cash used in investing activities
Financlng activities
lncrease in demand loans
Decrease in mortgages PaYable
Increase in mortgages payable for new debt
Proceeds from bonds
Decrease (increase) in related party receivable
Increase in deferred financing charges
lssue of common shares
Dividends paid
lr,prease (decrease) in construction financing
Net cash from financing activities
Increase in cash and cash equivalents
Cash and cash equlvalents, beginning of perlod
Cash and cash equlvalents, end of period
Supplementalcash flow information (Note 23)
- 243 -
18,980
(376)
(3,327)
(8,555)
5,020
377
(7571
ft38)
11,224
u.27sl
9.945
(5,936)
I,090
(24,761l.
17,100
(96,443)
es.267l
t138.217)
54,467
(5,905)
25,961
1,278
(1,641)
36,744
(9,022)
-, (50)
101.832
(26"t40)
66.743
$_1!1393.
2006
(As Restated
Note 4)
$ 12,059
(7,7e8)
(208)
(1,5e3)
3,922
413
(1,670)
5,125
1.949
7.074
(54,0e6)
43,538
32,342
(2,077)
(7,640)
ø3.682)
(61.615)
20,722
(9,627)
32,704
112
1,596
(570)
639
(2,e73)
.- e.7?5
52.328
(2,213)
34.185
s 31.972
See accompanylng notes to lhese consolldateed interim financial statements prepared under Intemational Financial Reporting Standards.
tnterim financial statement prepared under Canadian GAAP are also avãilable

l
Homburg Invest Inc.
Nôtes to Intõrnational Financlal Reporting Standards Gonsolidated Interim Financlal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31. 2007
1. Basis of financlal statement presentation
These consolidated financial statements have been prepared under International Financial Reporting Standards
iiÈRs'i |j HorUurg Invest Inc. (the "Company"¡ tiaOês on the Euronext Amsterdam. As the Company is a
òãnao¡án Resident -corporation ii is also iequiréo to prepare a separate set of financial statements under
Canadian Generaly niceptéo Accounting irinciples'("Cãnadian gAAP'l): The [rost significant financial
differences between tne irhs and Canadiãn GAAÞ statèments, are that while the IFRS statements reflect the
investment properties and development properties at fair value and are without depreciation charges, the
Canadian dR¡þ ¡nancial stateménts reèord the investment properties at historical cost less accumulated
ã"plãii"t¡"ñ. ln aàCit¡on, cértain Oeterred charges related to leasing fees have been recorded as an asset ¡n
tnË Cãnaoian GAAp finaåciat statements and w-ill be charged to expense over the period of the related lease'
These charges are written off in the year of incurrence under IFRS'
2. Nature of oPeratlons
Homburg lnvest Inc. a corporation incorporated under the laws of Alberta, Canada' is listed on The Toronto
dto.i Êic¡"nge Crsx,'iãio tñá Èuroneit Amsterdam ('AEX"). The class A subordinate Voting shares trade
;ñ"i tù rymîoi"tt¡.d',-"nd th" Ctass B Multiple Votiàg Sháres trade as uHll,B" on the TSX and the Class A
Subordinaté Voting Shares trade under the symbol "Hll" on the AEX'
The principal place of business is 174'l Brunswick Street, Suite 600, Halifax, Nova Scotia' Canada'
The Company and ¡ts subsidiaries lease, build and sell commercial and residential real estate interests located
in õanãOä, Gêrmany, The Netherlands, and The United States of America.
3. Summary of signiflcant accountlng policies
The Company's accounting and reporting policies conform to lnternational Financial Reporting Standards'
These poiicies are summarized as follows:
a) General and consolidatlon
The consotidated financial statements are prepared in accordance. with International Financial Reporting
Standards. rne comiãnyr ãoõuitiñg poticiãi and its financiaf disclosures are in accordance with the
r-:ãàrmènO"tions of tire International Aócbunting Standards Board (IASB)'
For 2007 and 2006, these consolidated financiãl statements include the accounts of the Company's wholly
owned subsidiaries";õ;ñ;g Shàt"Co lnô, ttomburg Invest-(USA) Limìted, and,. Homburg (US)
lncorporated, wnicir are cãñå-oi"ñ CompanleJ íncorporate'o in^the Piovince of Nova Scotia; and Homburg
Hotdings (US) tnc., ùf'¡.rt ii in.orpg¡åt9o. in ti"'st"t" of Golorado; and Blackfoot Development Ltd',
Homburg Han¡s oevåiäpîent ltã.,'Cita¿el weit Development ttd., churchill Estates Development Ltd''
tnverness Estates rÑ;6r;"i-Lt'0., Hign Rvei oevetoiment !td.,, cP Development.Lld., Homburg Kai
Development l-t0., --l-lóf,ianO CarOêns- Development LtO., ruo*n Calgary Land Ltd', and Castello
Developments Ltd., which are Canadian companiäs ìncorqorated.,in the Province of Alberta; and Homburg
Holding (NETH) Beheer B.V. which is incorporated in ihe. Netherlands. New wholly owned subsidiary'
Homburg Acquisition Inc., a Canadian company incorporated in the Province of Alberta has been added in
2oo7.
lnadditiontheGompany'seighty.four(December31,2006-seventy.five;M-aI9!31,2006-sixty)who||y
owned timiteo partnJriüiri ãño éignt ldecember
31, äooo - elg¡t; Màrch 31, 2006 -'seven) partially owned
limited partnerships, which operate commercial anú residentiãl rental properties, .are-accounted for using
c.onsot¡dation or p.port¡on"iåôJnioi¡o"tion ãs appropriate. Fifieen (Dâcember 31,2006 - ten; March 31,
2006 - four) of thèse'limited partnerships own corporate structures.
-
- 244 -

- 245 -
Homburg Invest Inc.
Notes to Intõrnational Financial Reportlng Standards Gonsolldated lnterim Flnancial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31. 2007

Homburg lnvest Inc.
Notes to Intãrnational Flnanclal Reporting Standards Consolidated Interlm Flnancial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
3. Summary of slgnificant accounting policies (cont')
b) Properties
i) lnvestmentproPerties
Investment properties held are carried at fair value.
The Company has adopted apptication of |AS-40-lnvestment Property, and has chosen the Fair Value
method of presenting its investment properties in the financial statements.
The fair value of investment properùes'is based on valuations by a combination of independent appraisers
and management esi¡mãtes' pls any capital additions since the date of the most recent appraisal.
Managere-nt regutarly unOértai

Homburg Invest Inc.
Notes to International Financial Reporting Standards Gonsolidated Interim Financlal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
3. Summary of significant account¡ng pollcles (cont.)
d) Revenue recognition
Management has determined that all of the Company's leases with its various tenants are operating leases.
Minimum rents are recognized on a straight-line basis over the terms of the related leases. The excess of
rents recognized over amounts contractually due is included in defened rental receipts on the Company's
balance sheet. The leases also typically provide for tenant reimbursements of common area maintenance,
real estate taxes and other operat¡ng expenses, which are recognized as revenue in the period earned.
Gains and losses from the sale of properties are recorded when the collection of the sale proceeds is
reasonably assured, and all other significant conditions respecting rights and ownership are met. Properties
which have been sold, but for which these criteria have not been satisfied are included in properties held for
resale. There were no such properties at March 31 ,2007 and December 31, 2006.
The Company follows the provisions of IAS 40 and accounts for its investment property using the fair value
rnodel and records any unrealized valuation changes as income (expense) in the period of the valuation
change.
e) lncome taxes
- 247 -
The Company follows the tax liability method for determining income taxes. Under this method, deferred tax
assets and liabilities are determined according to differences between the carrying amounts and tax bases of
specific balance sheet items. Deferred tax assets and liabilities are measured based on enacted or
substantively enacted tax rates and laws at the date of the financial statements for the years in which these
tgmporary differences are expected to reverse. Adjustments to these balances are recognized in earnings as
they occur.
f) Gash and cash equlvalents
Cash and cash equivalents include cash on hand and balances with banks, net of bank overdrafts and highly
liquid temporary money market instruments with original maturities of three months or less. Bank borrowings
are considered to be financing activities.
g) Foreign currency
Operations outside of Canada are considered to be self-sustaining and use their primary currency for
recording substantially all transactions. The accounts of self-sustaining foreign subsidiaries are translated
using the current rate method, whereby assets and liabilities are translated at period-end exchange rates
while revenues and expenses are converted using average exchange rates. Gains and losses arising on
translation of these subsidiaries are defened and included in the cumulative foreign currency translation
account within shareholders' equity.
h) Stock optlons and contributed surplus
The Company has a stock-based compensation plan which is described in Note 14 e). The Company
ascounts for its grant under this plan in accordance with the fair value-based method of accounting for stockbased
compensation. There has been no compensation cost charged against income in2007 or 2006.
i) Uqe of estlmates and measurement uncertalnty
The preparation of financial statements in conformity with International Financial Reporting Standards
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the
reported amounts of the revenues and expenses during the reporting period. Significant estimates made by
management include future cash flows and capitalization rates used in determining fair value of investment
properties. Actual results could materially differ from those estimates.

Homburg Invest Inc.
Notes to International Financial Reportlng Standards Gonsolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
3. Summary of signlficant accountlng pollcies (cont.)
j) Long term ¡nvestments
Long term investments are carried at fair value.
k) Derivative financlal lnstruments
The Company has entered into interest rate swaps in order to manage the impact of fluctuating interest rates
on certain of its long term debt. The cunent interest rate swaps do not qualifo for hedge accounting and are
adjusted to fair value and recognized in eamings in the reporting period.
l) Deferred financlng costs
The Company follows a policy of capitalizing the costs associated with obtaining long term financing. These
costs are being amortized using the effective interest rate method over the term of the related debt.
4. Ghange in accounting PolicY
Deferred flnancing costs
During 2006, the Company changed its accounting policy with regards to financing costs. These costs were
previously expensed in the period incuned. Effective with the June 30, 2006 reporting pe¡1od, these costs are
now being deferred and amortized over the term of the related debt. The change was applied retroactively and
the Company feels the current policy will more accurately reflect the annual and total costs of the Company's
financing over the entire term of the related debt, The impact of the change in the accounting policy on the
ending balance of the retained eamings on December 31, 2005 is $1,477. The impact of the change in
accounting policy on the reported information is as follows:
Statement of Earnlngs
Decrease in interest on mortgages and bonds
Increase in amortization expense
lncrease in income tax expense
Increase in net eamings
Increase in earnings Per share
Basic Class A and Class B
Diluted Class A and Class B
Statament of Cash Flows
lncrease in funds from operations
Increase in deferred financing costs
- 248 -
March 31 March 31
2007 2006
$$570
$$117
$$156
$$2e7
$ $ o.o1
$ $ 0.01
March 3l March 31
2007 2006
$$570
$$570

Homburg lnvest Inc.
Notes to lnternational Financlal Reporting Standards Gonsolidated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
5. Business acqulsltlons
During the period the following significant acquisitions occurred:
Acquisítion Date
March 31,2007
February 8,2007
December 31, 2006
(Audited)
December 1, 2006
June 22, 2006
May 1, 2006
March 31, 2006
February 22,2006
Location
The Netherlands
The Netherlands (2)
The Netherlands
Germany (2)
Germany
Canada
Type of Property
Office (5 Properties)
Office (4 Properties)
Commercial (4 Properties)
Office
Retail
Food Service (9 properties)
Shares lssued Gash
Gonslderation
-1999,q9q
1.000.000
_L9!9J00
The shares issued as consideration for the acquisitions were issued at a value based on
when the terms of the acquisition were agreed upon.
:
$- ,29-19
$_4,308
$itp
$Jlt
$_gru
$--__9¿!!
their market price
The following is a summary of the amounts assigned to each major asset and liability at the date of acquisition:
lnvestment Properties
Receivables and other Assets
Mortgages payable assumed
Payables and other liabilities
Net assets acquired
Value of shares issued
Cash consideration
- 249 -
The Netherlands
$ 37,840
221
$ 38.061
29.203
360
29,563
$ 8,498
ô.479
$Æ

Homburg Invest lnc.
Notes to Intõrnational Financlal Reporting Standards Gonsolidated Interim Flnanclal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
5. Business acquisitions (cont.)
Investment ProPerties
Cash
The The
Netherlands (2) Netherlands
$ 60,981 $ 199,938
Receivables and other Assets 134 505
61.1 15 200.443
Mortgages payable assumed 46,593 143'698
Non construction demand
loan
Deferred income taxes
assumed
Payables and other liabilities
Net assets acquired
Value of shares issued
Cash consideration
4.111
50.704
$ 10,41 1
6,103
$_L308
- 250 -
6.249
149.947
$ 50,496
33.320
$_1-L!_76
(Audited)
Germany (2)
$ 610,418
21,884
2.470
634.772
390,412
154,640
12,715
77.O05
634.772
$ NIL
Germany
$ 41,333
91
41.424
32,704
10
32.714
$ 8,710
Canada
$ 9,386
61
9.449
236
236
$ 9,213
Subsequent to the Germany(2) acquisition, 3,000,420 Class A Subordinate Voting Shares-with a value of
$19,39å were issued räòáymei,t of acquisition related debt. ln the period e.nded March 31,2007,
ñ"éäii"iionr Íelated to the "r construction retated costs of the Germany(2) properly resulted in a.decrease in the
óãiãtr"sáno other liabitities of $3,337 assumed as part of the.acquisition. As a result, investment properties
i'rave ¡een reduced by an equal amount during the current peñod'
In all cases, the operating results of the acguired propertíes are included in the consolidated statements of
earnings from the acquisition date.
On a pro forma basis, had the February 8,2007 acquisition taken place at the beginning of 2007' the March 31'
2007 revenue would be nigner Oy appioximately $4b3 ana the March 31,2007 earnings before taxes would be
lower by approximatelY $61.

Homburg Invest Inc.
Notes to International FlnancialReporting Standards Gonsolldated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
6. Investment propert¡es
Balance, beginning of period
Additions (deductions):
Disposals
Cumulative cuffency translation adjustment
Acquisition through purchases, plus capitalized costs on
acguisition and transfers from development properties
Gapitalized costs of ProPerties
Unrealized valuation changes on investment properties
Balance, end of period
March 3l
2007
$ 1,957,808
(s33)
1,870
December 31
2006
(Audited)
$ 786,387
(2,189)
130,002
64,405
941,826
573
2,311
10.304 99.471
$_a0:!4.027 $_1_.e57.808
ln the first quarter oi 2007 investment properties were acquired at an aggregate cos!^o!-$- 64,978. The
acquisitions were f¡nanced by new debt and'other liabilities totaling $41,310, the issue of 2,603'731 Glass A
Subordinate Voting Shares for $17,655 and cash of $5,936.
In 2006 investment properties were acquired at an aggregate cost of $944,1 37. The acquisitions were financed
by n"* debt and otñer'liabilities totatini¡ $854,465, tñé issue of 6,950,000 Class A Subordinate Voting Shares
for $39,423 and cash of $50,249.
lnctuded in investment properties is one property (2006 - one) with a carrying value of $709,527 (2006-
$708,854) on which the tenant has a purchase option exercisable in2020.
7. Development ProPerties
- 251 -
March 3l
2007
Land held for future develoPment $ 97,564
Construction properties being developed for resale 239.591
$_E¡!7J55
December 31
2006
(Audited)
$ 97,691
204.066
s 301.757
f n the first three months of 2007, the Company capitalized acquisition, development and -re]ated costs of
6ss,ssA (December 31, 2006 - $118,272) ór wn¡crr $4,780 (December 31, 2006 - $151120) was interest
òapital¡zeà. These costs were financed'Oy tne assumption of d_ebt in the- amount of $7,500 (December 31' 2006
- S-g,Oiõ1, thè issue of 350,000 (Decembêr 31, 2006 - 250,000) Class A Subordinate Voting Shares for $2'439
(oeóemÉär 31, 2006 - $t,äzs¡ w¡tn tne remainder in cash and the assumption of other liabilities. Also during
àOóZ EÑf f- (De'cember 31,'200'6 - $13,990) of completed proþcls were reclassified to investment properties and
EiS,Oð2 (decem¡er 31, 2006 - $27,744) were reclassified from Land held for tuture development to
Construction properties being developed for resale.

Homburg Invest Inc.
Notes to lntãrnational Financial Reporting Standards Gonsolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
8.-Restricted cash
Restricted cash includes deposits on real estate properties, refundable commitment fees and secur¡ty deposits.
9. Receivables and other
Trade receivables
Related party receivable (Note 17f)
Deferred rental receipts (Note 3d)
Prepaids
Bonds receivable
10. Long term investments
" Cedar Shopping Centers, Inc. and misc.
Alexis Nihon Real Estate Investment Trust
DIM Vastgoed N'V.
DIM Vastgoed N.V., October 2010 closing
- 252 -
March 3l
2007
$ 14,581
3,088
5,339
2,803
$_æ,gLl_
March 3f
2007
$ s40$
98,106
22,826
December 31
2006
(Audited)
$ 19,705
4,366
2,945
1,49E
4.512
$ 33.026
December 31
2006
(Audited)
930
22,915
18.549 18.419
s_14A-4 - s 42Æ5
The company holds 50,000 (December 31, 2006 - 50,000) common shares of cedar shopping centers' Inc'
¡ö;dritãid"t estate invãstrient trust listed on the NewYork Stock Exchange (NYSE: CDR)'
The company holds 5,274,539 (December 31,2006 - NIL) unìts of.Alexis Nihon Real Estate Investment Trust
¡Át;a ñîúñ,,), a reat estãte ¡nvestment trust traded in thê TSX. The units are pledged as secuity for a margin
account w¡th an out.t"niin! båtnc; òf $s¿,¿oz at period end. Subsequent to period end, the Company
successfutty acquired "JJ¡t'r"nãr units of Alexis Ñihon io increase their holdings to approximatety 87olo of the
issued and outstanding units (Note 22d)'
The company,s investment in DIM Vastgoed NV. ('DlM") consists of deposit receipts representing 967'142
(December 31, 2o0o - õoî,ì¿zl .na¡gs]_ot DlM, a'real éstatg-i1ye-¡tment company listed on the Euronext
nrrtãrà"r Stock Exchañ ge'and'72,360 (December 31, 2006 - 72,360) direct owned shares'

Homburg Invest Inc.
Notes to Intérnational Financial Reporting Standards Gonsolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
10. Long term investments (cont.)
- 253 -
The Company's investment in DIM related to the October 2010 closing consists of deposit receipts representing
842,586 (OeiemUer 31, 2006 - 835,123) shares of DIM which will be acquired October 1,2010. The Company
has full vòting rights over these shares effective in the first quarter of 2006, however does not acquire legal títle
until October-1 ,1OlO. The Sellers will receive 6.5 Class A Subordinate Voting Shares of Homburg Invest lnc. for
each Df M share owned. The Sellers can elect, by December 16,2007, to receive their 2010 payment as a Cash
price of USD $21.20 per share. The Sellers are entitled to all dividends paid on the DIM shares until the date of
sale, however the Gómpany has voting control over those shares. Should the Sellers elect to receive their
payment in the form of Clas's A Subordinate Voting Shares, the Company has agreed to a. dividend guarantee
bnfttting the Seller to a price adjustment equal to the amount by which-the dividend on 6.5 Homburg Invest-lnc.
shareiexceeds the dividend on I DIM share cumulative for the period from 2006 through to October 1 , 2010' At
March 31 ,2007, the Company has no cumulative liability (December 31, 2006 - $460) related to the cumulative
dividend guarantee. No amouht will be recorded as a dividend guarantee liability u¡til December ?007 when the
Sellers eléct their method of payment in 2010, thus establishing the actual value of any liability' .This transaction
has been included ¡n the càlculation of Diluted Eamings Per Share based on the assumption that all DIM
shareholders will receive Class A Subordinate Voting Shares as fult payment. The total shares over which the
Company has voting control represents in excess of 23o/o of the ¡ssued and outstandt!9 shargs of DlM. The
Comþani does not ãctively participate in the financial and operating policy decisions of DIM and therefore does
not accoúnt for their investment using the equity method of accounting.

Homburg Invest Inc.
Notes to Intérnatlonal Financlal Reporting Standards Gonsolidated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
11. Long term debt
Secured debt
Mortgages PaYable (a)
Mortgage bonds PaYable (b)
Unsecured debt
Corporate non-asset backed bonds (c)
Junior subordinated notes (d)
Deferred financing fees
March 3l
2007
$ I,193,296
223.890
1.417.186
December 31
2006
(Audited)
$ 1,154,254
223.685
1.377.939
l8l,535 160,015
51.651 61.826
243.186 22'1.841
1,660,372 1,599,780
(9.4291 (1.2571
$J.Ë0.s4!1 $_-1égå5æ
Long term debt has both fixed and variable interest rates. At period end the weighted average interest rate for
all lo-ng term debt was 5.751% (2006 - 5.713o/o).
Normal principal installments and principal maturities are as follows;
2007 - remainder of Year $
2008
2009
2010
2011
Subsequent Years
NormalPrincipal
lnstallments
15,842
19,55s
23,504
22,883
28,366
- 254 -
Principal Bonds and Junior
Maturities subordinated notes Tota!
$ 52,125
10,705
214
12,920
16,937
990.242
19,689
46,241
61,686
339.463
ç rrn15n sÆ $=Æ $-l€90.372
It is the Company's intention to seek renewals of the mortgage principal maturities at market rates.
$ 67,967
30,260
43,407
82,044
106,989
1.329.705

Homburg Invest Inc.
Notes to lntõrnational Flnancial Reporting Standards Gonsolidated Interim Financlal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
11.
a)
Long term debt (cont)
Mortgages payable
Mortgages payable are secured by a pledge of specific investment properties and an assignment of specìfic
rentjreleiväbie, with maturity oatei oetween 2007 and 2020. Included in mortgages payable are the following
foreign denominated amounts:
USD denominated
EURO denominated
March 3l December 31
2007 2006
(Audited)
$--_q.320 $_9,935
$-9,912. $-9J9.1-
€ ____09J.353 € _099.520
$Jpz+339 $LQ47.e6o
The period end exchange rates have been used to translate the non-Canadian mortgages.
b) Mortgage bonds PaYable
Bond
Series
HMBl
HMBl
HM82
HM84
HMBS
HM86
HMBT
Maturitv
December 15, 2009
December 15,2009
April25, 2010
November 30, 201 1
December 31,2011
June 30, 2012
June 30, 2012
lnterest
Rate
10.007o
- 255 -
8.500/o
7.50o/o
7.50o/o
7.5Oo/o
7.50o/o
7.25o/o
USD
CAD
EUR
CAD
Amount
cAD $4,420
EUR €9.905
EUR €3O.OOO
EUR €2O,O1O
EUR €2O.O1O
EUR €31,230
EUR €31.230
March 31
2007
s 4,420
15,269
46,241
30,843
30,843
48,137
48.137
s 223.890
December 31
2006
(Audited)
$ 4,420
15,255
46,198
30,814
30,814
48,092
48.092
s 223.685
The Mortgage Bonds are seven year bonds issued in series and secured by a frst or s.econd charge over
specific aõsãts ano a corfoiateguärantee. The bonds mature between December 2009 and June 2012 and the
óo.ó;ry ñãJtné op¡on to réOãer any Series of mortgage bonds. at their face amount anytime subsequent to
tf'â fhn ånniversary'of the issue of the bonds. The inteiest is payable semi-annually on June 3-0 and December
31. lncluded in the mortgage bonds are non-Canadian mórtla_ge bonds in the amount of EUR €142'385
{Szts,+zo¡, (December Cr, zibo - EUR €142,38s ($219,20s)¡.- These amounts are translated at period end
exchange rates.

Homburg Invest lnc.
Notes to Intõrnational Financlal Reporting Standards Gonsolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
11. Long term debt (cont)
The Corñpany has entereá into guarantee arrangements on all of mortgage bonds-to maturity, with a
_series
company und'er the control of the-Cna¡rman and Chief executive Officer. Under the terms of the guarantee, the
ConiparíV is protected from devaluation of the Ganadian dollar against the Euro, to a maximum limit equal to the
face ïalúe oi each mortgage bond, and has relinquished any appreciation rights which may arise on the future
set¡ement of its Euro ?eîom¡naieO Mortgage Bonds. The Mortgage Bonds, which are recorded at the
prevailing exchange rate at March 31, 2001,-reflect an increase of $3,686 (December 3l' 2006 - $3'4E3) in
þrincipalämount iepresenting a decrease in the Canadian dollar versus the Euro since the Mortgage Bonds
ivere issued. This $b,686 inciease (December 31,2006 - $3,483) has been offset by the currency guarantee
receivable which has been recorded as an asset.
The final set¡ement of the currency guarantee asset or obligation will take place at the earlier of the retirement
of thé mortgage bonds or their schãOupO maturity. As a result of the guarantee, there is no earnings impact
related to changes in cunency value of the Mortgage Bonds.
c) Gorporate non-asset backed bonds
Bond Series Maturitv
HB8
H89
HBlO
May 31,2013
October 31, 2013
February 15,2014
- 256 -
lnterest Rate
7.90o/o
7.00%
7.25o/o
Amount
March 31
2007
EUR €50,010 $ 77,083
EUR €60,000 92,482
EUR €7,770 11.970
$ 181.535
December 31
2006
(Audited)
$ 77,012
83,003
$ 160.015
The Corporate non-asset backed bonds are seven year bonds issued.in series and secured by a corporate
grãrjntdu. The bonds ratur" between May 2013änd February 2014 and the Company has the option to
i"o*", any series of bonds at their face amount anytime subsequent to the fifth anniversary of the issue of the
bonds. Thê ¡nterest is payable semi-annually on Júne 30 and December 31. The bonds are issued in euros
and have been transtated ãt period end exchange rates. Subsequent to period end, an additional EUR €53,748
of Series HB10 was issued. As at March g1,2OO7,the Series HB10 bonds are still being issued to a maximum
face value of €100,005.
d) Junlor subord¡nated notes
The Junior subordinated notes require interest only payments until maturi$ in 2036.. The notes,.which consist of
Eùn €às,ooo and USD $20g00 tiave a fixed inteiest-rate until 2016 and variable thereafter until maturity. The
Corpany has a redempt¡ãñ'ópiion effective ¡n 2011 until maturi$, and the outstanding balances are translated
at period end exchange rates.

Homburg Invest Inc.
Notes to Intãrnational Financial Reporting Standards Gonsolidated Interlm Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31,2007
I 2. Construction financing
The Company has arranged construction financing, which is demand in nature, for its development properties.
Borrowin j rates on thesjfinancings are at fixed oi variable market rates, the weighted average.interest rate for
aff constñrction financing is735% (December 31, 2006 -7.08%). The Company has pledged its development
properties as security.'i.tpon comitetion of the properties it is the Company's intention to- seek long term
hnancing at availablé market ratei. Included in'the balance is financing from related parties totaling $NlL
(December 31, 2006 - $4,426). (Note 179)
13. Accounts payable and other llabllitles
- 257 -
March 31
2007
Trade payables (Note 17e) ç 47,452
Non construction demand loans (a) 79'319
Income taxes payable 2,497
Notes payable
l'529
Securiiy ileposits
4'408
17'1oo
Deposii
Loñg term payable (b) 25'504
SnaienolOérs-of DIM Vastgoed N.V., due October 2010(c) 20'650
Prepaid rents and deposits , , g {.qqq
202.812
December 31
2006
(Audited)
$ 51,403
25,077
2,200
1,773
5,068
25,481
20,650
3.924
s 135.576
a) Non construction demand loans include: a payable bearing interest.at US base ¡s¡¿ + 1% secured by
däposit certificates representing 949,862 DIM shaies and a margin loan bearing interest at7 'ï%.secured by
the investment in uniis of Alex]s Nihon (Note 10). The Non Construction Demand loan payable related to
Ottrt st'aréi is USD $2f,S00 ($24,851) iOecemner 31, 2006 - $25,077) of obligations translated at period
end exchange rates.
b) The long term payables include a bonus of $1,440 to be paid on ascheduled development project-up-on
tt{e earl¡eräf the óompletion of a specific construction projeci, sale of the related property or June 30, 2008.
ine Oonur is payable in Class A Subordinate Voting Shares with the number of shares determined based on
share vatue on the due date. Also inctuded is €15,612 ($24,063) (December 31, 2006 - $24'041)
representing the purchase price option on the remaining 6.637o of MoTo Objekt Campeon GmbH & Co KG
exercisable in the first qrárter oÍ 2012 and the accou-nt balances of the current 6.630/o partners. This is
related to the 2006 Germany(2) acquisition as detailed in Note 5.
c) The DIM Vastgoed N.V. ("DlM") payable relates to deposit certificates representing shares of DIM
o'otained in the firsi quarter or àooo tôr'wñ¡ctr the Company does not make payment until octob-er 2010 (See-
Ñôtu f Ol. The payable répresents the Cash Price option-payable.under the Share Purchase Agreement of
USD $17,863 (betember 31, 2006 - $17,705) translated at the period end exchange rate'
The Company has available credit facilities of $25,800 of which $],999 (December 31, 2006 - $NlL) is being
utilized ai r,¡ár"n g1, zoo7. $1s,000 (December 31, 2006 - $15,000) of the credit facilities is with a company
controlled by the Chairman and Ghief Executive Officer.

Homburg Invest Inc.
Notes to Intérnatlonal Financial Reporting Standards Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
14. Shareholderc' equity
a) Cumulative currency translatlon adJustment
- 258 -
The cumulative currency translation adjustment represents the unrecognized exchange adjustment on the net
assets of the Gompany's subsidiarieð that operate in the United States of America, Germany and The
Netherlands. The changã for the period reflects the impact of currency movements during the period on these
net assets.
The rates of exchange in effect on March 31,2007 was $1.00 USD = $1.16 CAD and €1.00 EUR = $1.54 CAD
(December 31, 2006 $1.00 USD = $1.17 CAD and € 1.00 EUR = $1.54 CAD). The ave11S9 late of exchange
ior the first quarter ol2007 was $1.00 USD = $1.17 CAD and € 1.00 EUR = $1.54 CAD (March 31' 2006 -
$1.00 USD = $1.16 CAD and € 1.00 EUR = $1'39 CAD).
b) Share capital
T'he Company is authorized to issue an unlimited number of Class A Subordinate Voting Sha1gs ("Class Al')' an
unlimited'nuñber of Class B Multiple Voting Shares ("Class B"), an unlimited number of Class A Preferred
énàrès ("preferred"), issuable in säries and-an unlimited number of Class B Preferred Shares ("Preferred"),
issuable in series.
Holders of Class A shares shall be entitled to receive notice ol to attend and to vote at all meetings of the
shareholders of the Company, voting together with holders of Class B shares, except for meetings at which only
holders of a specified ctáss ör serieé are entitled to vote. Class A shares shall be entitled to one vote for each
Class A share held.
Holders of Class B shares shall be entitled to receive notice of, to attend and to vote at all meetings of the
shareholders of the Company, voting together with holders of Class A shares, except for meetings at which only
holders of a specified clais oiser¡eiarã entitled to vote. class B shares shall be entitled to twenty-flve votes for
each Class B share helc.
Class A shares will be convertible into Class B shares in certain limited circumstances involving offers made to
all or substantially all of the holders of Class B shares'
Dividends are pãyaole on Class A shares and Glass B shares when declared by the Board of Directors. The
Class A and Class B shares rank equally in dividend eligibility'
preferred shares may be issued from time to time in one or more series, eâch series comprising the number of
snãres, Oesignations, rights, privileges, restrictions and conditions which the Board of Directors determines by
iesolutíon prïor to issuaice. ' preteireo shares are non-voting and.rank in priority to the Class A and Class B
rnãiãJ witn respect to dividends and distribution upon dissolution, No Preferred shares have been issued.

Homburg Invest Inc.
Notes to International Financial Reporting Standards Gonsolidated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
14. Shareholders' equlty (cont.)
The following table sets forth the particulars of the issued and outstanding shares of the Company:
Class A Class B
Subordinate Multiple
Votino Share.s Votino Shares Stated Caoital
(000's) (000's)
lssued and outstanding at
December 31, 2005
Exercise of options
57,818
362
30,845 161,670
52 1,20Q
Acquisition of properties (Notes 5, 6 & 7)
7,200
40,798
Repayment of acquisition related debt
3,000
19,395
Acquisition of investment
19
66
Public share issue (c)
14,286
68,406
lssue costs, net of income taxes
(466)
Dividend reinvestment plan
4.405
20.091
lssued and outstanding at
December 31, 2006
Exercise of options
87,090
1,339
30,897 $ 311,160
61E 4,126
Acquisition of properties (Notes 5, 6 & 7)
2,954
20,095
Private and other share issues (c)
lssue costs, net of income taxes
Dividend reinvestment plan
lssued and outstandlng at
March 31,2007
Beginning of period
Applied to stock options exercised
End of period
6,500
2.168
l99Jg!.
March 3l
2007
$ 916
33,205
(7s)
14.269
_g!É!-ã $-E82.789
c) P.'lvate placements and publlc lssue
In January 2007, the Company issued 6,368,164 Class A Subordinate Voting Shares at a price of $5.12
under a private placement. The placement was subject to board and regulatory approval.
f n June 2006, the Company completed a public issue of 14,285,715 Glass A Subordinate Voting Shares at a
price of EUR €3.50 ($4,95) per share, The conversion to Canadian was based on the exchange rate in effect
on the date the share proceeds were received. lssue costs of $3,536, less related income taxes of fi1,212,
have been netted againstthe gross proceeds.
d) Contributed surplus
- 259 -
December 31
2006
(Audited)
$ 1,143
(512) e27)
$-_404 $-9].q

Homburg Invest Inc.
Notes to lnternational Financial Reportlng Standards Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
14. Shareholders' equitY (cont)
e) Stock options
Under the Company's Stock Option Plan, the Company may grant options to its directors and officers of the
Company and 'emþloyees ol the management company. S]ock Optiont T"y be_ granted under the
Comþany's Stock ôpúon Plan on authoiized but unissued Class A Subordinate Voting Shares of the
Comþany. New StocÈ Options may not be granted under the Plan on Class B Multiple Voting Shares of the
Comþani. However, there are prwiously granted Stock Options to purchase Class B Multiple Voting Shares
that äre'outstanding and unexbrcised dnðer the Plan. The maximum number of Class B Multiple Voting
Shares issuable puisuant to Stock Options outstanding under the Plan shall not exceed that number of Class
B Multiple Voting Shares which are i-ssuable pursuant to outstanding Glass B Options from time{o-time (the
Class B share mãximum). The maximum number of Class A Subordinate Voting Shares issuable pursuant to
Stock Options outstandiirg under the Plan shall not exceed 10o/o of the aggregate ny¡bgr of issued and
éutstanding Class A Suboidinate Voting Shares and Class B Multiple Voting Shares at the time of grantless
the Class É share maximum at the timè of grant. Under the plan, the exercise price of each option shall not
be less than the closing market price of the Class A Subordinate Voting Shares on the TSX on the last
trading day prior to thJdate of granting of the stock option and an option's maximum term is 10 years'
Optioñs arô granted and vest at the discretion of the Board of Directors.
On March 3'1,2007, there were NIL Class B Multiple Voting Share Options granted but unexercised and
571,324 Class A Subordinate Voting share options granted and unexercised.
The Gompany follows the recommendations of lnternational Financial Reporting Standard 2 concerning
Stock Based öompensation and Other Payments wherein fair value of each option grant is estimated on the
date of grant using the Binomial or similai option pricing model. The fair value of each option granted was
estimatei using thé exercise price and the following weighted average assumptions:
Expected volatility
40.0o/o
Risk free interest rate
Expected l¡ves
Expected dividend Yield
- 260 -
3.31 - 3,65%
3.5 - 5 Years
5.60/o

Homburg Invest lnc.
Notes to Intãrnational Flnancial Reporting Standards Consolidated Interlm Financlal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
14. Shareholders' equitY (cont.)
A summary of the status of the Company's Stock Option Plan as at March 31,2007 and December 3l' 2006
and chang'es during the periods ending on those dates is presented below.
March 3l December 31
2006
Outstanding at beginning of period
Exercised
Expired
Outstanding at end of Period
- 261 -
Shares Welghted-Average
(000's) Exercise Price
2,528 $ 2.07
(1,957) $ 1.85
$
571 I 2.85
(Audited)
Shares Weighted-Average
(000's) Exercise Price
2,947 $ 2.11
(414) $ 2.35
(5) 2.85
2.528 $ 2.07
Number of Shares Date of Expiration Exercise
Under Ootion Grant Date Price
(000's)
_57,1 June 29, 2005
June 29,2010 $ 2.85

Homburg lnvest lnc.
Notes to Intórnatlonal Financial Reporting Standards Gonsolldated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
15, lncome taxes
Income tax expense differs from the amounts which would be obtained by applying the Canadian basic federal
and provincial income tax rates and the tax rates for various foreign jurisdictions to earnings before income
taxes. These differences result from the following items:
March 3l March 31
2007 2006
(As restated
Earnings before income taxes
$=-é949
Note 4)
$-lJ-gg.g'
Combined income tax rate
_33.00 %
lncome taxes
Increase (decrease) in income taxes resulting from:
Large corporation tax
Canadian tax on foreign income
Foreign income taxed at different rates
Non taxable portion of taxable gains
Permanent adjustment on unrealized and
realized valuation changes
Other
lncome taxes:
Current income and caPital taxes
Deferred income taxes
- 262 -
-3Æ4.vo
$ 8,593 $ 5,971
90 144
436
(4141
(5e0)
(1,416)
12291
$-7,@ $-5¿æ
(275)
$ 2,130 $ ge¿
4.930 4.326
$-ruqg $ 9'250
The accumutated deferred income tax liabilig at March 31,2007 is $109,970 (December31,2006 - $104'480)'
The tiabitity is attributable to Investment pro¡ierties $104,4S2 (December 31, 2006 - $98,693) and Development
prqperties'$6,g5g (December 31, 2006 -'$O,9SS). The liability has been reduced by a defened income tax asset
ôf $t,+zt (December 31, 2006 - 91,172)related to share issue costs.
The Company has non-capital loss carry forwards in the amount of $34,192 (December 31,2006 - $24'674)
which wili be used to reduce future taiabte income. These losses begin to expire in 2026 and have been
included in the calculation of defened income taxes payable. The company also has foreign tax credit carry
forwards in the amount of $1,236 (December 31, 2006 - $1,106) which will be used to reduce future foreign
ã;;; ;ãy"bià_1tèie tax cied¡ts bdgin to expire in 201s and have been included in the calculation of dererred
income taxes payable.

Homburg lnvest Inc.
Notes to lnternational Flnanciat Reporting Standards Consolidated Interim Financlal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31,2007
16. Financial instruments and risk management
Financlal instruments
The Company does not acquire, hold or issue derivative financial instruments for trading purposes.
The Company holds the following long term financial instruments: mortgages, mortgage bonds, corporate non'
asset baiked bonds, junior subordinated notes, long term payables and long term investments. The mortgages
have a fair value of $1,182,435 (December 31, 2006 - $1,161,891). The principal amount of the mortgage
bonds have been guaranteed against currency fluctuations until maturity of the bonds in 2009 through 2012.
The totat fair vatue of all bonds is $403,765 (December 31, 2006 - $395,551). The junior subordinated notes
have a faír value of $58,734 (December 31, 2006 - $61,826). The long term investments are carried at their fair
value.
The fair values of long term financial instruments are based upon discounted future cash flows using discount
rates that reflect curent market conditions for instruments with similar terms and risks. Such fair value
estimates are not necessarily indicative of the amounts the Company might pay or receive in actual market
transactions. Potential taxesand other transaction costs have not been considered in estimating fair value, as
management has determined these costs to be impractical to estimate.
The Company's short-term financial instruments, comprising amounts receivable, cash, accounts payable and
accrued líabilities, demand loans and securig deposits are carried at cost which, due to their short-term nature,
app.'oximates their fair value.
Risk management
- 263 -
In the normal course of its business, the Company is exposed to a number of risks that can affect its operating
performance. These risks, and the actions taken to minimize them are discussed below
a) lnterest rate risk
The liabilities of the Company have fixed and floating interest rate components resulting in.an exposure to
interest rate movements. Th'e Company has minimized its interest rate risk through a liability management
policy. ,. The Company allocates the maturig of its debt over a period of approximately 30 years. ln addition,
''ine
öompany haé eniered into interest rateswaps maturing in October2014 in orderto manage the imLqct
of fluctuátinj ¡nterest rates on EUR €35,000 of its long term debt.Due to a reduction of interest rates in The
NetherlandJand Germany during the three months ended March 31,2007, the impact on the statement of
earnings is revenue of $757 (March 31, 2006 - $1,670).
b) Credit risk ' The Gompany's principal assets are commercial and residential buildings. Credit risk. arises from the
possibitity'thai teñants-may not fulfill their lease obligations. Ttre Company mitigates_this credit risk by
þerformiñg credit checks on prospective tenants and ensuring that its tenant mix is diversified.
c) Cunency risk ' Currenóy ¡sk arises from assets and liabilities denominated in US Dollars or Euros. The Company mitigates
a portion of its currency risk on mortgage bonds denominated in Euros through a guarantee agreement (See
nöte t t¡. The Compa'ny has also eðta¡lisneO internal hedging relationships between Euro'denominated net
invesmänts in foreign ielf-sustaining operations and Euro-denominated Bonds and Junior Subordinated
Notes, At March 31,2007, EUR €75¡00 (December 31, 2006 - €75,000) of the Company's net investment
was hedged with an equal amount of Euro-denominated debt. The hedge is considered to be an effective
hedge aiMarch 3i, 2007 and will be regularly reviewed to assess_th.e continued effectiveness of the hedging
relaäonship. Currency risk for other amounts denominated in US Dollars and Euros is mitigated by US Dollar
and Euro revenue and expense streams related to property rentals.
In support of the currency guarantee the related party has arranged an arms length credit facility agreement'

Homburg lnvest lnc.
Notes to International Financial Reporting Standards Consolidated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
16. Flnancial instruments and risk management (cont)
d) Concentration risk
The Company's largest single tenant represents approximately 35% (March 31, 2006 - 18o/o) of property
revenue for the period. The risk relates to the ability of the Company to replace this revenue stream on a
timely basis while maintaining the related property costs. The Company mitigates this risk by entering into
long term leases; reviewing financial stability of tenants; obtaining security or guarantees where appropriate;
and geographic and industry segmentation of tenants. The Company also maintains their properties to a
quality standard that would support timely re-leasing of a property.
17. Related party transactions
The Company is controlled by the Ghairman and Chief Executive Officer through holding companies.
a) The Company has entered into agreements with companies commonly controlled by the Ghairman and Chief
Executive Officer to provide various services. A summary of the various revenues and expenses between
related parties is as follows:
March 31 March 31
b)
c)
d)
e)
- 264 -
Rental revenue earned
Asset and construction management fees incurred
Property management fees incuned
lnsurance incurred
Service fees incurred
Property acquisition/disposal fees incurred
fvlortgage bond guarantee fees incurred
Demand loan interest and fees incurred
Bond and other debt issue costs incuned
The transactions are recorded at exchange amounts.
2007 2006
$_l! íJJJ)
$J5gg $--1Jlfg
$-4$ $--321
$-2s1 $-ü!q
$_ 206 $__1.4:!
$_2M- $-3.600
$__s25 $_920
$-N!t $
$-1990 $
The Gompany has approved a resolution authorizing the property manager, a compaly commonly controlled
by the Cliairrñan anil-Chief Executive Officer, to operate trust accounts on its behalf as required to conduct
business of the Company.
Professional services of approximately $51 (March 31, 2006 - $68) were purchased from a corporation of
which one of the Company's directors is affiliated.
The Company has entered into a guarantee arrangement for the principal and interest amounts of the
Mortgage Borids payable to maturity, with a company under the control of the Chairman and Chief Executive
Officér,-wherein it is protected against fluctuations in the Canadian dollar and the Euro (Note l1). The cost
of this guarantee per annum until maturity is 1.5% on the Series 1 Bonds, 2.0o/o on the Series 2 Bonds, and
1.6% on the Series 4, Series 5, Series 6, and Series 7 Bonds.
lncluded in accounts payable are mortgage bond guarantee fees of $925 (December 31, 2006 - $792) and
management fees of $67 (December 31,2006 - $71) payable to companies commonly controlled by the
Chairman and Chief Executive Officer, which are non-interest bearing and have no set terms of repayment.
The receivable of $3,088 (December 31, 2006 - $4,366) is from companies commonly controlled by the
Chairman and Chief Executive Officer, which is non-interest bearing and has no set terms of repayment'

Homburg Invest lnc.
Notes to International Financial Reporting Standards Consolidated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
17. Related party transactions (cont)
g) The Company has borowed construc{ion financing in the amount of $NlL (December 31, 2006 - $4,426)_
from a company controlled by the Chairman and Chief Executive Officer. This loan is interest only at a rate of
8o/o Per annUm.
h) A subsídíary of the Company has an indemnification agreement with a company contro-lled b_y the Chairman
'
and Chief Executive Officer. The indemnification agreement, in the amount of $3,309 at March 31
(December 31 , 2006 - $3,1 1 3), calls for the full amount to be settled during the year.
i) On February 1,2007 the Company acquired an investment property from a company controlled by a
member of the board of directors for $ 990.
j) In January 2007, the Company issued 6,368,164 Class A Subordinate Voting Sn"ryg qla price of $5.12
- únder a piivate placement to a company commonly controlled by the Chairman and Chief Executive Offcer.
The placement was subject to board and regulatory approval'
18. Earnings per share
Net income per share has been calculated based on the weighted average number of shares outstanding as
follows:
2007
(000's)
Basic
Class A Subordinate Voting
Class B Multiple Voting
Diluted
Class A Subordinate Voting
Class B Multiple Voting
The dilution consists of:
Class A
Exercise of options
Conversion of long term paYable
Conversion of DIM payable
Conversion of promissory note
Class B
Exercise of options
- 265 -
93,640
31.384
_125ßu.
99,662
_gtEg4,
_t!!1_gg
321
224
5,477
6.022
57,985
30.850
_g!-935
63,068
31.326
_91^994.
1,124
246
3,631
----5-q83
_476
The dilutive effect of outstanding stock options on earnings per share is based on the application of treasury
stock method. Under treasury stock method, the proceeds from the exercise of such securities are assumed to
be used to purchase shares ofthe same class.

Homburg lnvest lnc.
Notes to International Financial Reporting Standards Consolidated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31,2007
19. Gommitments
a) The following is a schedule of the future minimum
subsidiary company.
2007 - remainder of year
2008
2009
2010
$
$
$
$
lease payments on several
76
6E
39
26
operating leases of a
b) The Company and its subsidiaries have entered into various property management agreements, expiring
between 2010 and 2012. (Note 17a).
c) The Company has 6 construction projects underway to which it has signed commítments of $37,437.
20. Gontingent llabilities
a) There are claims which the Company is involved with, arising out of the ordinary course of business
oþerations, The Company's management does not consider the exposure to such litigation to be material,
although this cannot be predicted with certainty.
b) Specific subsidiaries of the Company have been advised of a pending potential transfer tax assessment. The
táx àssessments, if issued would impose transfer tax on the acquisition of these properties by the subsidiaries.
The potentiat liability would be EUR €7,831 ($12,070) and would increase the cost of the applicable properties,
thus reducing the previously recorded unrealized valuation change recognized in income, should the Company
be unsucceslful in defending the assessments. To date no assessments have been received. The Company
has reviewed this matter, hai received legal advice, and believes it is not required to pay the transfer tax on
these acquisitions. Accordingly, the Company has not recorded any of the proposed transfer tax in its
consolidated fi nancial statements.
21.lndemnities
- 266 -
The Company has agreed to indemnify its directors and officers in accordance with the Company's policies. The
Company maintains lnsurance policies that may provide coverage against certain claims.

- 267 -
Homburg Invest Inc.
Notes to Intãrnational Financial Reporting Standards Gonsolidated Interim Financlal Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
22. Subsequent events
a) The Company is continuing the issuance of Series HB10 Bonds for maximum value of EUR €100,005
(étS+,t+¿) bêariñg an annualiñterest rateoÍ7.25o/o to be paid on asemi-annualbasis. To March 31,2007 EUR
èl ,ZlO (Sí l,SZe) had been issued. The Bond íssue was approved by the Board of Directors and the Company
has recèived regutatory approval. The proceeds from the issue will be used for general corporate purposes and
for future acquisitions.
b) The Company has entered into agreement to acquire an office building in the Netherlands for a purchase
piice ot appioximately EUR €36,550 ($56,000). The transaction is expected to close in the second quarter of
äOOZ anO will be finanied with debt financing of approximatety EUR €30,000 ($46,000) with the balance payable
in cash.
c) The Company has entered into agreement to setl a construction property in Can_a_d_a which is being developed,
fór resale. The transaction is exþected to close in the second quarter of 2007 with total proceeds of
approximately $34,000, which is in excess of the carrying value of the property.
d) The Company has acquired a total of 25,938,238 units of Alexis Nihon Real Estate Investment Trust ("Alexis
¡linon"). Thè aiquisition represents approximately 87o/o ol tng jgsugd and outstandjng units _of the trust. The
units were acquired for a total cost of approximately $4S2,000. The acquisition is being financed with an
acquisition bridge loan plus cash of approximately $65,000. The_Company has entered-into an agreement to
disþose of specìfic propêrties within Alexis Nihon, subject to_the.Company obtaining 100% ownership in Alexis,
Ñifion. fne äisposition'of the specific properties is expected to be completed in the second or third quarter of
2007; would result ín a net cash inflow of approxímately $300,000 after payout of applicable secured debt and
taxes, which would be applied to reduce the balance of the acquisition bridge loan; and is secured by a deposit
in trust of $17,100 from the purchaser.
e) The Gompany has entered into a joint venture agreement on the ownership of nine shopping centres located
iri ttre Un¡teð Siates. Homburg will acquire an 80% interest in the joint venture, with the properties valued at
approximately USD $170,000 ($196,500). The acquisitio!,*!rqh is subject to board approval and due diligence,
*¡li Oe finanóed with approximately USD $107,000 ($124,000) of existing debt and the balance in cash. The
transaction is expected to close in the second or third quarter ol 2007.
0 The Company has entered into agreement to sell a construction property- t¡- which is being
_C_ang!a.
developed. The iransact¡on is expected to close in the second or third quarter of 2007 with total proceeds of
approiimately $977,000, which is in excess of the carrying value of the property.
g) The company has acquired an office building in the Netherlands for a total purchase price of EUR €9,300
iéf +,SOOI. ihe iransaction was financed through the issuance of 284,210 Class A Subordinate Voting Siares,
io Ue valúeO based on the trading value on the iransaction closing date; financing of EUR €7,500 ($1 1,500); and
the fema¡nder in cash.
h) Ttre Company has entered into an agreement to acquire a q9{fo!ig^oJ 0S properties located.in Estonia, Latvia
ahO Uttruania for a purchase price of approximately EUR €197,000 ($304,000). The transaction is expected to
cf ose in the third quarter oÍ 2007 with debt financing for up to E0% of the aggregate purchase price'
i) The Company has filed a preliminary short form prospectus for a public offering of approximately $200,000 of
Éubscription reêeipts, each representing the right to receive one Class A Subordinate Voting Share of the
Compa'ny. The offering is subject to regulatory and stock exchange approval'
j) The Board of Directors has approved an_increase in the semi-annual dividend to $0.24 per share commencing
w¡tn tne second semi-annualdividend in 2007.

Homburg lnvest Inc.
Notes to Intérnational Financial Reportlng Standards Consolidated lnterim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31,2007
23, Supplemental cash flow information
Change in non-cash working capital
Receivables and other
Accounts payable and other liabilities
Deferred financing costs
Interest paid
Capital and income taxes paid
24. Rental income under operating leases
March 31 March 31
2007 2006
ç 4,524 $ (503)
(5,803) 2,452
$_1L.27s) $___L949
$__lgJzg $_1:77"
$J4tZ $-æ34.
The Company's operations consist of leasing commercial and residential real estate. The following is aschedule
6y yêars bf minimum future rentals on noncancelable operating leases having initial terms in excess of
one year:
2007- remainder of year 112,878
25. Staff costs
- 268 -
2008 132,405
2009 131,218
2010 129,55E
2011 130,299
Thereafter 944.136
$1180.4s4
The Company has a management agreement with a related party (Note 17) and therefore has no employees.

Homburg Invest lnc.
Notes to lnternational Financial Reporting Standards Gonsolldated Interim Flnancial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except per share amounts)
March 31, 2007
26. Segmented Information
The Company owns a diverse portfolio of residential and commercial income-producing properties located in
Canada, The Un¡ted States of America, Germany and The Netherlands. Sales and costs of properties
developed for resale relate to properties within Canada. The accounting policies used in the preparation of the
segmented information are the same as those described for the Company in Note 3 - Accounting Policies. The
Company primarily evaluates operating performance based on net operating income. As such, interest,
amortizaiion, and general and administrative expenses have not been allocated to the segments. All key
decisions pertaining to these items are managed centrally.
The following provides a summary of key information of the Company's residential and commercial operating
segrnents:
Throe Months Ended
March 31, 2007
Property revenue
Operating expenses
Three Months Ended
March 31, 2006
Proper$ revenue
Operating expenses
Three Months Ended
March 31,2007
Properly revenue
Operating expenses
Three Monlhs Ended
March 31, 2006
Property revenue
Operating expenses
- 269 -
Retail Industrlal
$ 6,521 $ 8,253
1.278
$_4¿49
Retail lndustrial
$ 4,346 $ 7,481 $ 5,134
1.247 172 1 ,596
$_3Æ9. $__7.30e $=Æq
Netherlands GermanY
$ 9,661 $ 20,207
429 408
$_9.232 $_11J9!t
Office Residentlal Total
$ 25,608 $ eS¿ $ 40,036
2.390 318 4.216
$__?g¿tg $_336 $_gE&q
Office Residential Total
$ 624 $ 17,585
315 3.s3!
$=Æ $Æ
Canada US Total
$ 8,974 $ 1,194 $ 40,036
2.837 542 4.216
$__g,ÍlL $_6sz $-_ggéeq
Netherlands Germany Canada US Total
$ 3,282 $ 5,367 $ 7,815 $ 1,121 $ 17,585
51 2e 2.776 +11 ,q'gqg
$_-_Ø1 $Æ $_5Æ $Æ $Æã

Homburg Invest Inc.
Notes to Internatlonal Financial Reportlng Standards Gonsolidated Interlm Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
26. Segmented information (cont.)
March 31,2007 Reta¡l lndustrial Office Residential Total
Investment property
Mortgages payable
Mortgage bonds payable
Dêcember 31, 2006
lnvestment propefi
Mortgages payable
Mortgage bonds payable
March 31, 2007
Investment property
Mortgages payable
Mortgage bonds payable
December 31, 2006
Investment property
Mortgages payable
MoÉgage bonds payable
s_225Jgg $__{6s.0!!Ê s_1=!11-0.029 $=:Æ s3934gjl
$ 74f,f7 $ 310.5s0 $ 794.407 $_1:!É22 $ 1.193.296
s_Ez,glz $-29;!14. $-9¿!g $: $=i9.zz1
Retail Industrial
g ':-: 217.175 $_1Êre86
$
-: 74.803 $__31_2,950
$_57Jgg $Æ
Office Residential Total
$__1Æ0,801 $Æ $19ú@
s_7n=q25. sÆ s@
$-q 232 $: S-9q-686.
--
Netherlands
$_5Ë!,59,
$___ggÆ12
$:
Netherlands
- 270 -
GermanY
$ l.t 12.387
$___70gJ3l-
$__3g,g4g
Germany
Canada US Total
$-314,55r $-28.522 $JÉ3rtg4,
$-119,33L $-992. $-l!.!l!!¿99
s_1_e3.044 $: $_123.892,
Total
$=-1flt99 $-Lr!zéEs $-glgrlgt $ 29'19? $-+++99q
g $_71Étfl $__90.005 $_9"29.1 5J.1114J.J
$
$_ $Æ1é $Æ91 $: $-22EÉ85
At March 31, 2007 Mortgage bonds payable total $223,890, exclusive of the cunency guarantee receivable of
$3,680. Of this amount $t22,119 related to properties under development and funds intended for acquísitions
and development projects which will be located in Canada. The remaining $96,771 is allocated to specific
segments above.
At December 31, 2006 Mortgage bonds payable total $223,685, exclusive of the currency guarantee receivable
of $3,4g3. Of this amouñt $tZO,ggg rêlated to properties under developmen! an-d funds. intended for
acquisitions and development projects which will be located in Ganada. The remaining $96,686 is allocated to
specifi c segments above.
At March 31, 2007, the Germany segment included one (December 31, 2006 - two) tenants that individually
represented greater than 10olo of totai property revenue. This tenant individually represented 35% (December
31, 2OOO - 28o/o and 1 1 o/o) of total property revenue for the period.
US

Homburg Invest Inc.
Notes to lnternational Financial Reporting Standards Consolldated Interim Financial Statements
(Unaudited - Prepared by Management)
(CAD $ thousands except pershare amounts)
March 31, 2007
27. Interest in joint ventures
TheCompany,atMarchSl,200T,ownsa partialinterestineight(December31,2006'eight;March31,2006seven)
limited partnerships. The ownership percentages range from 5% to 55.55%. These partnerships operate
commercial and residential rental properties.
These f¡nancial statements reflect the Company's share of the assets, liabilities, revenue and expenses of the
limited partnerships in accordance with the principle of proportionate consolidation as follows:
March 31 December 31
2007 2006
(Audited)
Assets
Cash and cash equivalents
Development properties
Receivables and other
lnvestment properties
Liabllltles
Accounts payable and other liabilities
Security deposits and prepaid rent
Mortgages payable
Distribution payable
Reivenue
Property revenue
Expenses
Property operating expenses
General and administrative expenses
Mortgage interest
Depreciation and amortization
Cash flow
Net cash from operating activities
Net cash from financing activities
Net cash from investing activities
- 271 -
$ 1,426 $ 2,059
16,331 15,054
389 684
., 12.492 12.108
$_gg,E38 $__29,e05
$ 11,785 $
41
6,276
169
$3!7
March 31
2007
$Jg
$ 'llz
5l
80
43
$__34!i
$==Æ
11,889
36
5,311
March 31
2006
$__991,
$ 168
I
76
37
$__ 290
g_202 $_L9E
$ fi51) $ (217)
$_f1ø) $==_€)
28. Comparative figures
Certain of the comparative figures have been reclassified to conform to the financial statement presentat¡on of
the current period. The changes to the 2006 comparative information were made to reflect Deferred financing
fees as an offset to the related long term debt rather than as a seprate item on the Balance sheet.

- 272 -
39. AUDITED CONSOLIDATED F'INANCIAL STATEMENTS OF ALEXIS
NIHON FOR THE YEARS ENDED DECEMBER 31, 2006 A}[D 2005, PREPARED
IN ACCORDAIICE \ryITH CANADIATI GAAP

Auditors' Report .
Consolidated Balance Streerr....,..............
Consolidated Statelnents of Unitholders' Equity.
Consolidated Statements of Income.
Consolidated Statements of Cash Flows .
Notes to the Consolidated Financial Statements
- 273 -
ALEXIS NIHON REAL ESTATE INVESTMENT TRUST
CONSOLIDATED FINANCIAL STATEMENTS
December 31.2006 and 2005
CONTENTS

AUDITORS'REPORT
To the Unitholders of
A¡-Exrs NrHow Re¡L Esrere lNvestup¡rr Teusr (the "REIT")
We have audited the consolidated balance sheets of Alexis Nihon Real Estate lnvestnent Trust as at December 31,
2006 and 2005, and the consolidated statements of inconre, unitholdels' equity and cash flows fbr the years then ended.
Thcsc financial statements ore the responsibility of the REIT's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We co¡ducted our auclits i¡r accolclance with Canadian Cenerally Accepted Auditing Standards. Those standards
rcquirc that wc plan and perlblni an auc.lit to obtain reasonablc assurancc whcthor thc financial statemerìts alc fi'oc of
mûter.i¿ìl misst¿ìtement. An audit includes exanrining, on a test basis, evidence supporting the amounts and disclosures in
the financial stateme¡ts. An auclit also inclucles assessing the accounting plinciples used arrd signifìcant estilnates 11ìade
by nranagcnrent, as wcll as evaluating thc ovelall financial statelncnt prcsentâtioll.
l¡ our opinion, these consolidated financial statelncnts present fàilly, in all material rcspccts, the financial position of
thc REIT as at December 3 I , 2006 ancl 200-5 ¿rncl the lesults of its operations and its c¿rsh flows fbr the years then ended in
accol'dancc with Canadian Generally Accepted Accounting Principles.
Montre¿rl, Quebec
- 274 -
February 2,2007
(Except fcrr Notes I and 27 , which are dated March 21, 2007)
Chartered Accountants

Alexis Nihon Real Estate Investment'llusl
Consolidated Balance Sheets
As at Decernber 3l
(in thousands of dolla¡'s)
Assets
lncome-producing properties (note 5) $697,016 fi668'146
lntarrgible assets (note 6) . . . . 35'360 39'416
Properties held for development (note 7) 4,418 964
Other assets (note 8)
19'787 20'960
Duc fionr cornpanies undel comnrou colìtrol of cer-tain tl'ustees of the REIT (note 9) 280 535
Liabilities
Debts on income-producing properties (note l0)
Convertible rjebentul'es liability component (note I l)
-
lntangible liabiìities (note l2).,, . .
Bank indebtedness (note l3). , . .
Accounts payable and acclued liabilìties
Distributions pavable
Commitments and Contingencies (note l4)
Equity
Unithoidcrs' equiry .
- 275 -
Sce accompanying notes
qzqq¡É_l_ q21q.64
s;419,201 .$370,321
39,370 .53,468
2,4t6 3,203
40,007 4t,969
r9,968 20,303
2,415 2,251
523,437 49 I ,5 I 5
)77 4)4 239,106
$756,86r $730,621

Unitholders' Equity - December 31,2004
Net income
Units issued (note 15).
Distributions.
Unitholders' Equity - December 31, 2005
Net income
U¡rits issued (note l5).
Conversion oi convertible debentures (note 15) . . . .
Disn'ibutions.
Unithotders' Equity - December 31, 2006 . . . . .
- 276 -
Alexis Nihon Real Estate Investment'Ilust
Consolidated Statements of Unitholders' Equity
For the Years Ended December 3l
Units Net
in $ Income
6267,234 S34,170
6,r28
2,971
$270,205
) t)'7
t4,210
$40,298
6,958
Other
llquity
Components Distributions
(in thousands of dollars)
$2,8s2 S (46,000)
$2,8s2
Ø52)
$ (74,249)
(28,szs)
s258,256
6,t28
1Cl'7 1
(28,249\
$239, r 06
6,958
) l)'7
13,758
(28,525)
.$286,542 s47.2s6 s2,400 $,t02,774) 5233,424
See accompanying notcs

Revenues from Rental Operations (note l6)
Rental Property C)perating Costs .
Net Operating Income
Alexis Nihon Real Estate Investment'fþust
Consolidated Statements of lncome
For the Years Ended December 3l
Expenses
lnterest (note l7)
Anrortization of buildings
Other amotization (note 18) . . .
Ceneral and administrative , .
Trustcxpenses.....
Intelnalization of constntction management company (note 3)
Sale process costs (note l) . . , .
Net lncome
Basic Net Income Per Unit (notc 20).
Diluted Net hrcome Per Unit (notc 20)
- 277 -
See accompanying notes
1in thousands of dollars,
cxccpt pcr unit arnounts)
$ r36,604 $ 121.496
64,372 58,666
72.232 62.830
30,344
16,535
14,141
2,140
1,590
26,4t3
| < '))(l
10,856
2,r50
450
1,6 t3
65.274 56.702
s 6.958 s 6,r28
s 0.269 s; 0.239
s 0.?ó9 s 0.23e

Cash Flows generated from (used for) -
Operating Activities
Nct incorne
Iterns not afI'ectine cash:
Alexis Nihon Real Estate lnvestnrent 'llust
Consolidated Slatements of Cash Flows
For the Years Ended December 3l
Amonization of buildings ló,535 15,220
Othel amo¡tization . . l4,l4| 10'856
Amoltization of above and below market in-place leases (?45) (232)
Amortization of defened financing costs. . 112 655
Arnortization of def'erred recoverable costs . . 340 280
Accrued rental revenue
Internaliz-ation of construction management company
Chanees in:
Other assets (note 23).
Accounts payable and accrued liabilities
Adclitions to tenant improvements and leasing costs . .
Additions to defelred lecoverable costs..
2005
(939) (l'704)
2,792 (3'143)
(506) 10'214
(9,589) (9,080)
(3'008) (l'189)
Caslr l-lorvs generated from Operating Activities 27,191 29'618
Financing Activities
(in thousands of dollars)
$ 6,958 S 6,128
Inc:rease in debts on income-producing properties... 57,8 13 32,938
Repayrnent of debts on incotne-producing properties. . . .
(19,610) (12'6t33)
Arnoltization of fair value debt adjustment , . . . (108) (12ó)
Accretion on liability conrponent of convertible debentures 131 130
Additions to deferred financing costs ., (612) (6 13)
Bankindebtedness...
(1 '962) 4l'16l
Distributions paid . .
Cash Flows generated from Financing Activities
Investing Activities
Acquisition of rental properties (note 4)
Additions to buildings
Additions to propelty undel developmetìt . .
Additions to furniture, fixtures and compttters. . . . .
Deposits on potential acquisitions
Due frorn conrpanies under cotnnon control of certain trustees of the REIT
Cash I'lolvs used for Investing Activities
I)ecrease in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year. .
- 278 -
Scc accompanying notes
(26,t]4)
9,484
(27,496)
(7,082)
( r96)
(8e)
(2,067)
1,6 t3
t)6 q46\
3-ts6
'
(62,413)
(9.898)
(172)
(651)
(285)
255
(36,675) (13,419)
$-
(10,000)
10,000
q-

l.
Description of the REIT
General
Alexis Nihon Real Estate Investment lÌust
Notes to Consolidated Financial StatemenLs
Decetnber' 3l, 2006 and 2005
(dollar arnounts are in thousands. except per unit amounts)
Alexis n*ihon Real Estate lnvestment Trust (the "REIT") is an uninccrrporated closed-ended investnrent trust created by a contract of trust (the
"Contract of Trust"). The REIT was established under, and is governed by, the laws of the Province of Quebec.
Sale Process
On Deceulber4.2006, lhc REITannounced that its Boarcl ol'l'rustces woulcl suppon an offer being maclc by Cominal Real Estatc lnvcstrnent Trusl.
("Cominar"). Pursuanr to ¿ì combinâtiorì agreenìent (the ''Conlbinat¡on Agreenlent"). Cominar agreed (a) to acqu¡re all of the issued ¿rnd
outsranding Unirs fbr, at the clection ol'each Unitholcler, cither: (i) $l 7.00 in cash. or (ii) 0.77 oflr unit ofConrinar (subject to pro ration). and (b) Lo
acquire all or substarÌtialìy all of the assets of the REIl'.
On January 14, 2007 , the REIT adopted ô unitholder rights plan designed to prevent a creeping takeover.
On January 24, 2OO7 , the REIT executed an amenclment ro the Combination Agreement with Cominar providing for. atnong other rhings' (he
increase of the cash component of the proposed combination from S17.00 to $18.50. The REIT also received tìonl Conlinar a waiver of the
application of certain sections of the Colnbiuation Agreernerìt altowing the REIT to grant the access to nìaterial non public intormation and to
paficipate in discussious with respect to a porential'Acquisition Proposal" within the meaning ofthe Combination Agreement with Hotnburg
Invest ltìc. ("Homburg"), Suntntit Real Estate lnvestrnent Tnrst and ING Real Estate Canada in certain circunlstances.
On fìcbruary 16.2007, Homhurg sutrmitted to the REITa bincling proposal to nrakc an all cash ofle¡ to ncquire all the issuccl and oulslandirìg LJnils
rhat it tloes nor already own ar a price of $ | 8.60 per Unit, subject ro the execution of a support agreelnent substantially upon the sanìe terlns alld
conclitionsastheConll¡inatiÙnAgreel'¡lenlwithCominar'includingÀterÛìi|ìationfèeofsl2'500.Subsequently.
Homburg's bincling proposal was an "Acr¡uisition Proposal" ancì a ''Superior Proposal" within the nleaning of rhe Combinatirin Agreetretrt itncl
ttotified Conìinar of its deternlinariorr, allowing it to exercise its five-doy right to uìatch Homburg's ¡rroposal under the Conìhination Agreenlelìt.
On Febru¡ry 19,200?, irftcr Cominar waivccl its iivc-day right to rnalch thc proposal from Hontbttrg. the REIT terrninalcd thc Conlbinalion
AgreelnentwirhCgnrinarandenteredintoasupportagreenre¡rtwìthHontburg(the'supponAgreement")ttnderwhichtheREI'IagreedfostlpPort
an ofTer.fiorn Honrburg orany subsidiary rhereofto acquire all the issued andoutstanding units ofthe REITthat it does nùt already own. al a pr¡ce of'
$18.60 per Unit.
On March l. 2007. an oftêr made by Hombury Acquisition Inc., a wholly-owned subsidiary of Homburg Invest lnc., to putchase all of the
oursranding unirs ol the REITat a pricc ot$18.ó0 in cash per Urrit (the "Olfu¡") and rhe related takc-overbicl circular as well ¿s the trustces'circulûr
of the REIT reconrnrending acceprance of the Oft'er were nrailed to all holders of record of the REIT. The Oft'e¡ is open t'or acceptance until
rnittnighr (Mont¡eal rinìe) orì April ,5, 2007, unlcss extcndcd or rvithdrawn by Horlburg Acqtrisition Inc.
Forthethreea¡ìdtrvelverronthsendingDecenrber3l.2006.S1,590incostswereexpensedrelatirìgtotheRËl'I"ssaleprocess'l'hesccostsincludc
Iegal. advisory and other pr.otessional t'ees as well as $551 ofdue diligeance costs on potential property acquisitions that the REI'f'has had to
rvithdrawlioln'Adclitionalc0stsareexpccredtobeincurrcclìnfulurcquarlcrs¿ìsthctrí1l]sac|.ionncarsconrpletioll'Purs¿ìn[ttl
ConlbinationAggreenlentandtheSuPponAgreentenr.incertainci¡.cuntstances.Conlina¡.a
gl 2,.S00 cach. ll'thc Suppon Agrccntcnt is tcrnrinared undcr certrin circuntstanccs by Honrburg or by thc REI-f, thc REI'I' h¿ls íl-qreù(l to Pay the
out-of-pocket expenses of Hotnburg to a nlaxinlunl of 5600.
Summary of Significant Accounting Policies
Principles of Consolidatio¡r
The consoliclatecl financial statements inclucle the accounts of the REIT, its subsidiairies and its proportionate sha¡e of assets, liabiliLies, rcventles
a¡d expenses of co-owned properties. On consolidation, all nlaterial inter-entity ttansactions and balalrces have been elilninated.
Cousot¡dâtion of Yariable Interest llntities
- 279 -
Elfecrivc January l. 2005. rhc REIT acloprccl Thc Canadian lnstinrte of'Chartered Accountants' Accounting Cuidcline 15. 'ConsolitÌuti

Use of Estimates
The preparation of the consolidated financial statements in confbrrnity with Canadian Generally Accepted Accounting Principles requires
m¿lnagellìenr to make estimates and assumptions that atfect the reported amounts ofassets and liabilities, the disclosure ofcontingent tssets aÍìd
liabilities at the dare of rhe consolidated financial staternents and the reponed arnounts of revenue and expenses during the reporting year. Because
ol'the use of cstinlares inherent in the financial reporting process, actual rcsull.s could differ fiorn those estimalcs. Signiiicant eslil¡ìates flnd
assutrptions made by nranagement itìchtde, but are not lir'rìited to, the useful lives of long-lived assets, the câsh tlows exPected from the on-going
usc and clisposal oflong-lived assers. the discount râtes used in deterrnining cùrtain f¿rir vitlue estinrates and the fair virluos ol'tangible and intangiblc
assets acquired upon thÈ purchase of i¡ìcome-Producing propertles.
Revenue Recognition
'fhe REI'l uses the straight-line nlethocl of recognizing rental reve¡lue whereby the total arnount of rental revenue ¡tl be received from leases is
accou¡ìted f'or on a straight-line basis over the terrn ofthe related agreernents. Percentage rents are recogniz-ed when the required level of sales has
been achieved. Recoveries tiom tenírnts for taxes. insurance írnd other operatirìg expenses are recognized ¿ls reYellues in thc periocl in which thc
applicable costs are incurred. Recoveries fbr repaìr and nlaintenance costs (def'erred recoverable costs) are tecognized olì a straighl-line basis over
thc expecred liic of'the items. Parking ancl other incidental are recognizetl when the serviccs are provided.
Inconre.Producirt g Properties
lncrrnle-protltrcingprÒperticsillc|utlclanc|.bui|clings'tenant
tena¡ìt i'lprovene
plus acquisition-related cosls.
Lived Assers".
Maintenance ancl repairs that âre tìot recoverÂble tì'om terìants are either expensed as incurred. or, ìn the case ot a nlâior itenì, capitalized trr
buildings ancl aurortiz.ecl on a stlâight-linc basis over the expected useful lif'e ol the itellì.
Anrortization of buildings is provìtled using the straight-line mclhod ovcr 35 years'
Major repair ancl mainteìtance itelns that ¡tre recoverable from tenarìts zIIe capitalized to rJcferrecl recoverable costs and amortized on a straight-line
bo.i* nuet the expected usetìrl liiè of the ítems. The amortization ofthese itenls are included in rental property operating cosrs.
Anrortizatiotì of leasing costs atìd renânt improvenrents including tenant inducelnents and allowances are provided using rhe straight-line tnethod
over the tcrnìs o[ the rclated leases.
Intangible Assets and Liabilities
Aporliontr|.lhcpurchirscpricco|aninconle.prodtrcingprÒpertyfllustbci|loc{ltedtÒintangiblc
alror,eandbelownral'kerleasesandtenant[elatio|,ìslìips.ifany.'[hisa||ocatiollistrasedonnìanageD]e|ìt'sesti|¡ateoltheirt.air
intangiblcs arc ar.Ììorrized on a srraighl-linc basis over thc tcrnrs of thc relarcd lcascs. The alìlortizaliotì of the abovc and bclow rnarket in-plncc
|easesisrecordedinIeve¡'ÌtleSfrotnrnta|OpeIat¡ons.InrangibIesarereviewedpeliodical|ytbillpairlnent
[.0n9-l.ived Assets".
Propcrtics Held for DevcloPnìcnt
properties held tbr.developrnenr include two lands and one building, which are carried at cost. Cost includes the purchase price of the asset.
acquisition-related costs. other di¡ect costs of clevelopment and construction, property taxes, interest on specific debr and irll incidental property
expenses. pl.openies held fbr developrnent are reviewed pericrdically for intpairment as described ulìder "lllìpairtlìent of l-olìg'I-ived Assets"'
CaDital¡zat¡on ofcosrs to propefties under cleveloprnenr continues until the property reaches its accoutìting colnPletion date, the deterllìination ol'
which is based on achieving a satisfhctory occupancy level.
Impairnrent of Long-f,iYed Assets
Long-livedassets.whichincludeinconre-pr

Future incnnre taxes are cornputed using substantively enacted cory)orate inconle tax rates tbr rhe years in which the differences are expected to
reYerse.
Unit-Bâsed Compensation Plans
'lhe REIT has in effect the following unit-based compensation plans:
a) A unit option plan as described in note I 5. The REIT will recognize the täir value of unit options on their grant date as compensation expense
over the períod that the unit options vest.
b) An enrployee unir purchasc plan (EUPP) as described in note 15. A compensation expense is recognized for the REIT's contributions to the
plan over the vesting period.
c) A long-terur incentive plan as described in note I 5. A conrpensation expense is recognized f'or the REIT's contr¡hutions to the plan over the
vesting period.
Business Acquisition
On January I , 200-5, the IìEI-I'acc¡uired the assets of a constrrrction m¿lnagement company owned by cefiaiD tftrstees ol'the REI'I for a consideratiotl
ofa¡rproxintately $1,638 paid by the issuance of 132,743 units ofthe REIT. Substantially all ofthe pulchase price has been expensed as an
inrernalizationof constructionmaÌìagenentservicesbytheREl'linaccordancewithElC-l33 "lnternalizaliottof lltentanagement-fitnúion¡no
ro¡'alry or income lrusl " .
The acquìsition has been recorded at the exchange atilount, which is rhe anrount ofthe consideration established and agreed to by the rela(cd parties.
'l'he purchase price has been allocated as follows:
I'unliture¿rncllìxtures.
Internaliz-ation ol construct¡on rìtânagenletlt expense .
.... .. $ 25
| | 3
'6
Consiclerarionpaitl....
qLgs
The ner inco¡le of the acquirecl contpany has been incluclecl in lhe consoliclated statement of net inconìe ftonr thc dato of acquisition.
Acquisition of Rental Properties
During the year, the REIT{ìcquired ten incomc-producing properties and related asse(s ancl liabilities (2005 - fìve incorne-producing propenies
and related assets and liabilities). A portion of one inconre-producing property has been classified as held for development. The following rable
summarizes the net assets acquired:
Land held tbr developurent
Ilu ildirrg un(ler dcvelopnìenl
Land
Btrildings
'l-enanr irnprovenìents .
Intangitrle assets and liabilities:
Retail Industrial
Propcrties Propertics
$
-
3.949
ó.845
l'3fi)
Lease origination costs tbr in-place leases 3'130
Above rnarket in-place leases
Below rnarket in-place leases
Other assets
t5t
Accounts payable and accrued liabilities
(136)
Debtsoninc

5, Income-ProducingProperties
Land $ 138.85-5
Buildings and tenant improvements
I-easing costs
'fenant-impro"enrent recorcled on acquisitions.
Def'e¡red lecoverable costs .
6. Intungiblc Asscts
Cost
60t.254
ó.802
1 4qq
4,191
$753,607
Lease origination costs f'or in-place leases . . . $56,065
Above nrarkcl in-place lcases 2,270
gsÉ]I
7, Properties Held for Development
l-and held tor developnìent
Building rrncler developutent
Cost
200ó
2005
Accumulated Net Cârry¡ng Net Carrying
Amortization Änrount
53.873
t.ó9l
407
sl 38.855
547,38 I
,s,t ll
a nq?
620 3.517
$56.59r $69?.016
2006
^mount
$ t27,93-s
.535.09 r
3.8+ I
Ð70
909
$668.746
2005
Accumulùted Net Carrying Net Carrying
Amortizatíon Amount Anìount
$2 I,73ó
I t'ìo
'sn.r15
DLrring the year, interesr expense of $64 (2005 - $Nil) was capitalized to properties heìd for developnlent
8. C)ther Assets
Accounts receivable
Deferrerl re¡rt receivable.
Prepaids .
Deposits on potential írccluisitions
Restrictedtunds...
Def'erred financing cosls
Furniture, l'ixtures ûnd corììputers.
Other , . .
- 282 -
Restricted funcls heltl at Ciìnadian financial institutions are pursuant to ogreernents with various rnortgage lendcrs.
Deterled tìnancing cosrs are ret of accunrulated arnortization of $1,ó13 (December 31, 2005 - $901)
Ëunriture, fìxt¡re Íìnd conrputers are ¡ret of accunrulatecl arnortiz¿ìtion of $714 (Decernber 31. 200-5 -:ì527)
9. Due from Companies Under Common Control of Certain Trustees of the REIT
$34,329
1 .031
$35,36i)
s2,750
l ,668
s4.4 l8
$.17,894
| ("1
S3r..{ lrt
2006 2005
S9(r4
$96r1
2006 2005
$ 2,897 $ 5..145
4,54t 3.602
1.285 1.386
| ,-548 58 I
ó.r90 6.088
2.503 1,080
627
9ó
715
r53
s r 9,787 $20.960
The aÛìounts clue fronr conrpanies un(lcr conlnon control of ccrtain [ustces o[ thc REIT ûre non-intcrcsl bearirtg ancl have no sPecific tenrls trl
repilyment.

10. Debts on Inconre.Producing Properties
Loans secLrred by moltgages on incorne-producing propenies. bearing intelest at a weighted average anrtual rzrte of
6.07o, rcpayablc in hlended nronthly instahncnts of$3,01 I maturirìg at various

t3. Ba¡rk Indcbtedncss
14.
The REIT's $70,000cred¡t tãciliry is subjecr to annual review and consists ofa general operating loar available by rvay ol'¡rrilne rate loans, banket's'
arcceprances and letters ofcredir. Bonowings by way ofprime rate loans bear interest at prinre plus0.5% perannt¡m. Borrowings by way of brnkcrs'
acceptances bear irìterest at a rate equal to the bankers' acceptance rate plus stânìping tèes equivalent t

Unit-Based Compensation Plans
a) Unil 0plion Plan
'fhe IìEI't has a unit option plan (tlìe "Plan") under which unit options rray be issued to employees, directors, ofTìcerc or Trustees of the
REIT. its rvholly-owned subsidiaries as well as certain trilsts of which the REIT is direcrly or ind¡rectly a henet'iciary. The total numher ol'
units in respectofw'hich options may be granted under the Plan ùìay not exceed 2.-535.180 units.'l-he unit option plan provides that ¿ìt no tir.rìc
shaÌìthenunlberofunitsreselvedforissuanceundertlìePlanexceedl-5o/oofthethenolrtstandingunits.Theexelcisepriceoltheoptionswill
be equal to the mflrkct price of the units on the day before ths clay on which the option is g¡antçd,'l-hc option shall be exercisnble lìrr a pcriod
not exceedirìg I 0 years, No grants have been awarded under the Plan. As at Decenrber 3 | , 2006. tlìe plan was suspended due to the Suppon
Agrecment (see note l).
b) Etnployee Unit Purchase Plan (EUPP)
'fhc REIT has in effect an EUPP which gives eligible employees the opportunity to acquire units of the RË,I'I' for between ZVc to 5Vo of their
gross salaries and to have the REÍT contribute, a frrther anìounr equal to 50¿lo ofthe amourìt invested by the ernployees, over the f'olìowing
fivc years. The contributions âre used to purchase unirs of the REIT in the open narket. As at Dccember 3 I , 2006, the plan was suspcndetl clue
to the Suppon Agreerìent (see note l).
c) Long-Tenn Incenlive PIan
In 2005, the REIT adopted a l-ong-Ternì Incentive Plan (the "LTIP") which provides t'or the grant of Tlust Units to key executives and any
orher employees dcsignated by the board of rlirecto¡s of the REIT, up to a nraximum of 4oa/o of their overall bonus. Annually, thc REIT
contributes the anroì,rnt of the bonus ro be rende¡'ed under the LTIP to the trust fldrninistering rhe plalì. which in turn purchases units of the
REIT on the open market. The enrployees become entitlecl to the units and the inconre t'rom the clistributions over a threÈ-year period ol'
conrinuous employment. The REIT's contÍibutions and accunrulated distributions are recorded as det'erred cotnpensation expense (irìcluded
in other assers) and expensed over the vesting period. As at Dece¡lber 3 l. 2006, the IIIP was suspended due to the Support Agreetnent (see
note l). In rhe evcnt of a change of conrol, the UI'tP calls for the inlnrediate payment of all accumulated unp¿¡id contributions to all
l)art¡clpants.
In 2006, rhe REIT lecorded a total conrpensation expense of $132 (2005 - $75) f'or the various plans.
Distributions
The REIT is required ro distÍihure to unitholdem tìot less than 857¡; ofthe Distributable l¡lcorÌe as defined in the Cotltract ofTrust.
16. Ilcvenucs From Rental Operations
Rcntnl rcvenuc contractu¿lly duc unclcr lhe lcascs
Acclued rental revenue
Amortization ol' ¿rbove rn¿rrkct in-placc Icascs
Amortization of belorv Inarket ¡n-place leases . .
17. Interest
Interest on debts on i¡rcorne-producing properties, at stated rate
lnterest on convertible debentures, at stated rate
Accretion on liability conìponent of conveilible debentures . .
Amortization of defened fìnancing costs .
Anrortizatio¡r of fair vaìue debt adiustrnent
Othcr intercst
2006
$t.15.420 $il9,560
9.39 1.704
(-s42) (5 r3)
787
st3ó.604 $r2r.496
2006
$23,68tt
3,337
137
7t2
2005
$2 r .353
3,410
r30
o))
il0rì) (126)
2,578 99 |
s-10.344 $26..+ | 3
Certain dcbrs on incornc-producing propertics assunìcd on acquisitions have been adjustc(l to f'air vâlue using the rnarkct intcrest ratc at the tintc' ol'
acquisition. -l'his fair value debt adjustnrent is anrorrized to i¡rterest expense over the relìrainilrg lifþ of the debts.
lDterest paid tluring the year was 529.91 3 (200-5
- $25.619),
- 285 -

1E, Other Amortization
19,
20.
Amo¡tization of tenant inìprovements and lcasing çosts incunecl through leasing activitics.
A¡no¡'tization of furniture. t'ixtures and conlDr.lters
Anrortizatio¡r ol leasc origination costs lbr in-place leases incurred through acquisitions
Anror¡ization of ten¿rnt inrprovements incurred through acqLrisirrons
lncome 'f'axcs
lncornc-producing propcrtics
l)cbtso¡ìinconìc-producing"*.n'.. .... . . ,
Accounts payable and accrrred Iiabilities
Revenues
Iìx¡renses
2006 200s
$ 3.433 $ 2,212
r87 t86
Thc RIIIT is an unincorporated, clÒsed-ended investnrent trust created by the Contract ofTrust governed by the laws of th!' Province ol Quebec. The
taxable inco¡re earned by the RE,IT to unitholders and will deduct such distributions and designatiorrs for incorne lax purposes. Therelore. no
provision fì¡r income taxes has been made. lncome tax obligations rel¿rtirìg to dis¡ribution from rhe lìEI'I'are fhe obligations ol'the Lrnitholders.
New income rrust legislation was proposed by the Federal Ministly oi Finance on December 21,2006. Unde¡'the proposed legislation, certain
distr'¡butions rnade by "mutual fi¡nd tlt¡sts" rvould no longer be deductible fbr incorne tax purposes. This new legislation would corne into etlect
starting 20 I I . Ëarly indicatioDs are that certain real est¿rte i¡rvestnrent trLrsts would be excluded from this proposed legislation, so long as certain
technical rests are nìer. Currently, it is prernaturÈ to detennine the extent at which the legislation would affect the Rß1T. The RlllT will study the
detailed legislation at which finìe it becones available.
The REIT's sLrbsidiaries are Canadian-based enterprises which are subject to tax on their taxâble inconre under the hrcome Tax Act (Canada) at an
average ratË of approxìnrately 32aft - There is no provision required tbr the years ended Decenrher 3 1 . 2006 and 2005.
Net Income Per Unit Calculutions
Basic and dihned per unit anrounts are based on tlre following:
Basic Dilùted Basic
Net incorrre q___!¿s8 q____!€¡g q____qr8 q__9,1?8
weighted average number ol'units outstanclins , . . . J¡{git4 _ãq8541 _2s{9.U[f js¡lqlss
Convertible debentures have been excluded f¡om the calcLrlations of the dilLrtecl net iDcome per unit for the year ended December 3 I , 2006 and 2005
sìnce they ale onti-dilutiYe.
21, Inyestrnents in Co-Orvned Properties
'l'he IlEl'l"S pro-r'iìla sharc ofthe asscls and liabilitiris ol'the Co-Ownecl Properties ¿ìs at Decembcr 31,2006 and 3005. as well as its proportionatc
sharc in the revenues, experlses and cash flows for the yeals then ended ale as toilows:
Net inconre
Cash t'lows fronr:
Operating activities .
Financing activities .
Investing rctivilies
22, Segmented Informution
- 286 -
2006
| 0.283 8.33 r
238 t21
$l4.t4t $t0,85ó
200s
Diluted
2006 200s
$8.709 $8,71.5
3.922 4.t77
155 168
| ,448 | ,3ó I
1.280 |.266
168 95
5? | 382
(255) (266)
(266) (l 16)
The segnrented int'onnation is aligned to conform to the REIT's strategic business unit organization and is disaggregated anrong t'our segments;
ofñce, retail, inclustrial and nrulti-family residential properties.
'l'he REl.l' its subsidiaries and the Co-Owned Properties operate in the province of Quebec and Ontario in the above-mentioned segnlents.
'Ihe operating segmeDts are rnanaged separately becÂuse of the dilïerent types of propeilies, tenants and nrarketing st[ategies involved. The REI'ì-
cvaluatcs segrncnt pÈrlbnlìance b¿sed on net operatirg income which is entirely allocated anìongst thc scgnìcnrs.
'l'he Rtsl'l' utilizcs the same accounting policies fbr its segnreuts as those described in note 2.

200ó Officc Retail lndustrial
Revenues lì-orn rental operatiorìs
Rental propelty opelaring costs
Net operating income . .
Inconre-prodLrcing properties
Intangible assets
Additions to incorne-¡rroducing propenìes
Addirions to intangrble assers .
2005
s 63,44tì S 40.762
33,757 r7,48ó
q ræ2I 9 n_,ns
91!..129 qI88¡21
s 12,966 $ n,733
q_r_q¿z q_r¡!Él
$ - s 3,130
Office
Revenues frour rental operîtions . . . ... S -59.821 g 34,274
Rental ¡rroperty Òpcríìting costs. 31,283 15.731
Net operlting income . . qjgf$ LIIlf
lncorne-producing properties $312,701 $178,037
Intangible assets q_!_É463 q_]j].Z2
Additions to inconre-producing propenies q3t0'9gq 9_J_140
Additionstointangibleassets... ..... $ 5,304 $
23, Supplemental Cush Flow Information
24,
t<
Change in Othcr Assets
:
g 26,712
9,870
g_rr42
qrqérg
$ 10,661
s 20.287
q_lé3e
q ?a fìst
:
8.348
$ r3.705
$; 145,332
9 12.624
$ 44.50ó
$ | r.052
Multi-fanrily
r0sidcntial
$ 5.(182
3,2.59
'lbtâl
5 | 3(r.604
61,372
! J,421 !J2,2n
qü¡32 !É22!r!
s $ 35,3fi)
-
$_.lJ!2 ry!¡_t!
$ -
s 6.769
lVlulti-family
Ilctail Industr¡al rcsidential 'lbtâl
-
5 -5..1:llì Slll.49ó
1,304 58.ô6ó
$ 2.044 S 62.830
$32.676 !'668,74ó
$
-
$ t-s0
9 39.416
$ 82,896
$
-
$ 16,3s6
2006 200s
Accounls rcceivablc
$2,836 $(2.-s2 | )
Prepaids
tOt 26
Restrictedfunds... (202) (495)
Other... 57 (153)
q¿JE qrüi,
Related Party Transactions
Thc following related party transactions were nreasurcd at lhe exchange amount which is the atnount estiìblished and agrced to by thc relátc'd
Part¡es.
Head Leuse
In order to provide unitholclers ofthe RËl'I'with stable. predictable reve¡rues i¡r respect ofcertain v¿ìcant spírces Lhat. are expected to be leased in the
near tern], the head lessee, a cornpany under comnlon control ofceltain trustees oi the REIT, entered inro the head lease with the R[ilT. The head
lensc is for a lernr ol tcn years ancl applics to approxiniateìy ó9.-5-50 (2005 - 169,080) square fcct of leasablc arca of the incorne-protlucing
properlies dLrring 2006 at specitìed nrarket rental rates. For 200ó, the head leâse revenue a¡nounted to S5ó4 (2005 - $ì,332)
As security t'or rhe obligation of the head lease, a conrpany under conrnron corìtro¡ of ce¡lain trustees of the REIT has pledged units of the Rtall'.
F'inancial Instrum snts
Credit Risk
Managenrent reviews a new tenant's credit history bet'ore signing new leases and conducts regular reviervs of its existing tenants' cred¡r
perlbnnance.
Interest Rate Risk
- 287 -
The REIT is exposed to interest rate risk on dcbts on income-producing properties rìnd bank indebtedness which bcar interest base(l on prirne rates.
1'he fair value of the debts and bank indebtedness will fiuctuate as a result of chanses in interest ¡ates.

26. Comparative Figures
)a
Fair Value of Financial Instrumerìts
The tãir value ol the REIT's accounts receivabie, deposits. restricted tunds, l¡ank indebtedness, accounts payable and accrued liabilities and
distributions payable approxinrate their crÍying arnounts due to the rel¿ìtively shon perioils to marurity (rl'the instruments.
'l he l'air value ol' the debts on inconre-producing propenies lt l)ecember 3 I , 200ó and 3005 has been established by discounting thc future cash
t'ìows using interest rates cnrresponding to those which the REIT would currently be able to obtain fo¡ loans with sinrilar rnaturity dates and ternls.
Based on these assumptions, the fair value ofdebts on income-producing properties ¿rt Decenrber 3 1.2006 has been estinrated at 5+24.458 (2005 -
$378,750) compared with the carrying value of 5417,184 (2005 - $36tt,447).
The fair value ofthe 2004 convenible debentures as at Decenrber 3I,2006 is $50,087 (2005 - $56,100) conrpaled with the carrying value of
940,622 (2005 - $55.172). The fair values a¡e basecl on the 2004 convertible debentures' market rates at December 31, 2006 and 2005.
A reasonable estinrate offair value could not be made for amounts due to and from comoanies under common control ofcertain trustees of the REI'l'
as there is no comparable market data.
Cerrain reclassifications of 2005 amounts have been nlade to faciìítate comDarison rvith the current year.
Subse

- 289 -
SCHEDULE OF SELECTED FINANCIAL INFORMATION OF ALEXIS
NIHON FOR THE YEAR ENDED DECEMBER 31,2006 AND THE THREE-
MONTH PERIOD ENDED MARCH 3I,21]II7

ALEXIS MHON REAL ESTATE INVESTMENT TRUST
SCHEDULE OF' SELECTED F'INANCIAL INFORMATION
Auditors' Reporf ,
Schedule of Selected Financial Information
Notes to the Schedule of Selected Financial Information
- 290 -
CONTENTS

To the Directors of
Hovsunc Ixvesr INc.
luditors' Report
We have audited the schedule of selected financial information of Alexis Nihon Real Estate Investment Trust
(the "REIT") for the year ended December 3 i, 2006. The schedule of selected financial information consists of revenues
from rental operations, rental properry opefâting costs, incoüre-protlucirg ¡rruperties, intangible assets, additions to
income-producing properties and additions to intangible assets. This financial information is the responsibility of the
management of the REIT. Our responsibility is to express an opinion on this financial information based on our audit'
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require
that we plan and perform an audit to obtain reasonable assurance whether the financial informatiort is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
fina¡cial information. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
ln our opinion, this schedule present fairly, in all material respects, the selected financial information of the REIT as
at December 31,2006 in accordance with Canadian generally accepted accounting principles.
Montreal, Quebec
March 30, 2007
- 291 -
(signed) RSM Rrcsren LLP
Chartered Accountants

Revenues from rental operations
Rental property operating costs. .
Net operating income
Income-producing properties. . . . .
Intangible assets. .
Additions to income-producing properties . . . .
Additions to intaneible assets .
Revenues from rental operations
Rental property operating costs. .
Net operating income
Income-producirrg properties. . . . .
Intangible assets. .
Additions to income-producing propefües . . . .
Additions to intangible assets ,
Revenues from rental operations
Rental property operating costs. .
Net operating income
Income-producing properties. . . . .
Intangible assets. .
Additions to income-producing properties . . . .
Additions to intangible assets .
- 292 -
Alexis Nihon Real Estate Investment Tlust
Schedule of Selected Financial Information
Three Months Ended March 31,2007
For the Year Ended December 31.2006
For the Year Ended December 31, 2005
Homburg Cominar
Acquisition Acquisition
Propertles Pru¡rertles Tbtal
(Amounts in thousands of dollars)
(Unaudited)
$ 15,077
7,966
q_ll4
Ëqí1z
fi ll,162
ï_J4
$-
$ 18,781
9,143
$ 9,638
$ 33,858
17,109
s 16,749
$ 21,528 $ 32,690
qldÊz
$-
fi 5,127
q_
Homburg Cominar
Acquisition Acquis¡tion
Properties Properties Total
(Amounts in thousands of dollars)
$ 63,670 !È 72,934 $136,604
29,366 35,006 64,372
$ 34,304 $ 31,928 $ 72,232
q4qÉ9r
$_11",2i1
$_12p!1
q__iËq
q99qÉ4 $6ez'0].q
!È 23.626 $ 35,360
q2$lt
$ 3,639
$_$,8&
$ 6,769
Homburg Cominar
Acquisition Acquisition
Properties Properties Total
(Amounts in thous¡rds of dollars)
(Unaudited)
$ 57,089
27,509
ü_29,slq
w)20!.
$ r 0,728
q_]!pE
$-
s 64,401
3t,157
$ 33,250
w3_Õ42
$ 28,688
$_2?I!1
8121,496
s8,666
$__q?Iiq
g668llþ
$_32t19
$ 82,896
$ 16,3s6 q_r_qilÉ

l. Basis of Presentation
Alexis Nihon Real Estate Investment Tfust
Notes to Schedule of Selected Financial Information
(Amounts in thousands of dollars)
Tho ¡ohedule of ssleoted fiuancid information of Àlexio Nihon Roal B0tate Investment Trust (the "REIT") has been prepared on a carve-out batis
from the consolidated financial statements of the REIT. The schedule of selected Frnancial information has been prepared for the specific purpose of
reporting on the revenues f¡om rental operations, rental property operating costs, income-producìng properties, intangible assets, additions to
incorne-producing properties and additions to intangible assets of the Homburg Acquisítion Properties and of the Conrinar Acquisition Properties
to satisfy the regulatory filìng requirements regarding the acquisition of certain real estate ¿sseLs owned by Alexis Nihon.
Because the propenies were part of a corporate group, the scheclule of selected financial infoflnation depict the amounts associated with each group
of properties. Management's estimates, where necessary. have been used to prepare such allocation.
Hornburg Acquisition Properties is not a legal entity and is comprised of a l00o/c interest in the following income-producing properties:
Property
Placc Alexis Nihon, Montreal, Québec
Centre Laval 150-1690 Le Corbusier, Laval, Québec
-
777 Sainte-Catherine West, Montreal, Québec
1035-1135 Jean Baptiste Rolland Blvd. West, Saint-Jérôme, Québec
3310-3550 Côte-Vertu BIvd., Saint-Laurent (Montreal), Québec
1165-1175 du Trenblay, Longueuil, Québec
1200-1220 des Prornenades, St-Bruno, Québec
1200 Place Nobel, Boucherville, Québec
Cominar Acquisition Properties is not a legal entity and is conrprised of a 1007o interest in the foilowing income-producing properties:
Property
1080 Beaver Hall Hill, Monueal, Québec
4700 de la Savane, Montreal, Québec
455 Fénélon, Dorval (Montreal), Québec
9900 Cavendish, Saint-Laurent (Montreal), Québec
9999 Cavendish, SainçLaurent (Mont¡eal), Québec
9960-9970 Côte-de-Liesse Road, Lachine (Montreal), Québec
1,2,3 and 4 Place Laval, Lavaì, Québec
3080, 3090, 3100 Le Carrefour Boulevard, Laval, Québec
2525 Daniel Johnson, Laval, Québec
480 and 550 De la Cité Blvd., Gatineau, Québec
I I I I Dr Frederick-Phillips, Saint-Laurent (Montreal), Québec
3300 Côte-Vertu Blvd., Saint-Laurent (Montreal), Québec
400 Cooper Street, Ottawa, Ontårio
3071-3075 Louis A. Amos and 1922-1996 Onésime-Gagnon Lachine (Montreal), Québec
1ó15-1805 55th Avenue, Dorval (Montreal), Québec
-
3339-3403 Grìffìth, Saint-Laurent (Montreal), Qtrébec
8100 Cavendish, Saìnt-Laurent (Montreal), Québec
I 949 Onésinte-Gagnon, Lachine (Montreal), Québec
2260 - 32nd Avenue and 3142-3190 Joseph-Dubreuil, Lachine (Montreal), Québec
2102-2150 - 32nd Avenue, Lachine (Montreal), Québec
2024-2080 - 32nd Avenue, Lachine (Montreal), Québec
6320-6380 Côte-de-Liesse Road, Saint-Laurent (Montreal), Québec
2025 dela Métopole, Longueuil, Québec
1925-1975 Hymus BIvd., Dorval (Montreal), Québec
80-140 Lindsay, Dowal (Montreal), Québec
8411-8453 Dalton Road, Mount-Royal (Mont¡eal), Québec
8459-8497 Dalton Road, Mount-Royal (Montreal), Québec
8545-8579 Dalton Road, Mount-Royal (Montreal), Québec
8605-8639 Dalton Road, Mount-Royal (Montreaì), Québec
'1527-7583 Henri Bourassa Bìvd. East, Montreal, Québec
8552-8648 Pie-IX Blvd., Montreal, Québec
8740-8878 Pie-IX Blvd., Montreal, Québec
707 5 Place Robcrt-Joncas, Saint-Laurent (Montreal), Québec
1225 Volta, Boucherville, Québec
- 293 -

Property
2000 Halpem StreeL Saint-Laurent (Monûeal), Québec
2105,23rd Avenue, Lachine (Montreal), Québec
1 1 I l, 46th Avenue, Lachine (Montreal), Québec
5055 Levy Street, Saìnt-Laurent (Montreal), Québec
2400 Trans-Canada Highway, Pointe-Claire (Montreal), Québec
243 Hymus Blvd., Pointe-Claire (Monueal), Québec
2555 PitFreld Road, Saint-Laurent (Montreal), Québec
A 507o interest in the following income-producing properties:
Property
1710-1850 - 55th Avenue and 5435 François-Cusson Lachine (Montreal)' Québec
1520-1660 - 55th Avenue and 5430 Fairway, Lachine (Mont¡eal)' Québec
1875 - 55th Avenue and 22-62Lindsay, Dorval (Mont¡eal), Québec
1200 - 55th Avenue, Lachine (Montreal), Québec
A.257o interest in the following income-producíng properties:
Property
73I-749 Meloche and I 1450 Côte-de-Liesse Road, Dorval (Montreal)' Québec
703-729 Meloche, Dorval (Montreal), Québec
679-701 Meloche and 135-137 Lindsay, Dorval (Mont¡e¿l), Québec
All amounts have been derivecl from accounting infonnation specific to the income-producing properties to be sold to Homburg Invest Inc' and to
Cominar Real Esøte Investment Trust.
The selected financial infomration nrry not necessarily reflect Homburg Acquisition Properties and Cominar Acquisition Properties' restrlts of
operations and financial position in future periods, nor do they necessarily reflect the results of operations and financial position that would have
been realized had Honrburg Acquisition Properties and Cominar Acquisition Properties been stand-alone entities duling the periods presented.
The accompanying schedu'le of selectecl financial information is preparecl in accordance with Canadian Generally Accepted Accounting Principles
C,GAAp') using the same accounring policies and application thereof as the consolidated financial statements of the REIT for the year ended
December 31, 2006. They do not inclucte ¿ll the information and disclosure required by Canadian GAAP for annual financial statements.
2, Summary of Significant Accounting Policies
Use of Estimates
The preparation ofthe schedule of selectecl financial inf'ormation in conformity with Canadian Generally Accepted Accounting Principles requires
management to make estimates and assumptions that affect the reported anlounts ofassets and liabilities, the disclosure ofcontingent assels and
liabilities at rhe date ofthe schedule ofselected financial information and the repofted amounts ofrevenue andexpenses during the reporting year.
Because ofthe use of estimates inherent in the financìal reporting process, actual. results coulcl differ fror¡ those estimates. Significant estilnates and
assumptions made by management include, but ate not limited to, the useful lives of longJived assets, the cash flows expected from the on-going
use and clisposal of longlived assets, the discount rates used in determining certain fair value estimates and the fair values of tangible and intangible
assets acquired upon the purchase of income-producing propenies
Revenue Recognition
The REIT uses the straightline method of recognìzing rental revenue whereby the total anount of rental revenue to be received from leases is
accounted for on a straìght-line basis over the term ofthe related agreenìents. Percentage rents are rccognized when the required level ofsales has
been achieved. Recoveries fronì tenants for taxes, insurance ancl other operuting expenses are recognized as revenues in the period in which the
applicable costs are incurred. Recoveries for repair and maintenance costs (defenecl rccoverable costs) are recognized on a straight-line basis over
the expected life of the itenrs. Parking and other incidental are recognized when the services are provided.
Income-Producing Properties
- 294 -
Income-producing properries irìclude land, buildings, tenant improvements (developed by the REIT), leasing costs, def'ened recoverable costs and
tenant inrprovements recorde¿ on acquisitions which are carried at cost less acctrmulated arnortization. Cost includes the purchase price of the asset
plus acquisition-related costs. Income-producing properties are reviewed periodically for impairment as described under "ltnpairment ofLong-
Lived Assets".
Maintenance and repairs that are not recovelable from tenants are either expensed as ìncttred, or, in the case of a major itenr, capitalized to
buildings a¡rd mrortized on a straight-line basis over the expected useful life of the item.
Amortizatìon of buildìngs is plovided using the straight-line nìethod over 35 years.

Major repair and rnaintenance items that are recoverable from tenants are capitalized to defened recove¡able costs and amortized on a straight-line
basis over the expected useful life of the ite¡ns. The amortízation of these items a¡e included ìn rental property operating costs.
Amorrization of leasing costs and tena¡t improvements including tenant inducements and allowances are provided using the straight-line mettrod
over the terms of the related leases.
Intangible Assets and Liabilities
A poltioD of the purchase pricc of an income-producing propcrty must be ûllocûted to intangiblo components including in-place leasing costs,
above and below ma¡ket leases ancl tenant relationships, if any. This allocation is based on management's estimate of their fai¡ values. These
intangibles are amortized on a straight-line basis over the ter¡ns of the related leases. The amortization of the above and below market in-place
leases is reco¡cled in revenues from rental operations. Intangibles are reviewed periodically for impairment as described under "Impairment of
Long-Lived Assets".
Impairment of Long-Lived Assets
LongJived assets, which include income-producing properties, intangibles, properties held for development and furniture, fixtures and computers,
are reviewed for impairment whenever events or changes in circ[mstances indicate that the carrying atììount of an asset may not be recoverable.
Impairment is assessed by comparing the carrying anìount of an asset with the expected future net undiscounted cash flows from its use together
with its rcsidual value. If such assets ¿ue considered to be impairecl, the inpaiment to be recognized is measured by the amount by which the
carrying amount of the assets exceeds their fair value.
3, Income-ProducingProperties
Homburg Acquisit¡on Properties
Cost
Land.. ... $67,532
Builclings ànd tena¡lt improvenrents 259,987
Leasing costs 2,455
Tenaut improvement recorded on acquisition 2,499
Deferred recoverable costs . . 1,170
$rxr.3
Cominar rlcquisition Properties
Land . .
Buildings and tenant improvements
Leasing costs
Deferred recoverable costs . . .
4. Intangible Assets
Homburg Acquisition Properties
Lease origination costs for in-place leases
Above market in-place leases
Cosf
$ 71,323
346,08r
4,691
2,997
$425,092
Cost
$16,028
359
$ l 6,387
- 295 -
Accumulated
Amort¡zation
$ta
'raa
437
476
150
928,296
Accumulated
Amortization
$-
3r,670
1,417
567
qTJ]I
Accumulated
Amortization
$5,07s
150
$s,22s
March 31, 2006
Net Carrying
Amount
(Unaudited)
ç 67,532
232,754
2,01E
2,023
1,020
$3919f2
March 31, 2007
Net Carrying
Amount
(Unaudited)
$ 71,323
314,411
3,214
2,430
$391,37E
March 31, 2007
Net Carrying
Amount
(Unaudìted)
$10,953
209
$11,162
Deccmber 31,
2006
Net Carrying
Amount
$ 67,s32
233;140
2,02'l
2,092
:
1,004
q?nÁ ?o<
December 31,
2006
Nct Carrying
Amount
ç 7r,323
'117 6¿l
3,084
2,573
Fe9{4
$r 1,511
223
$11,734
December 31,
2005
Net Carrying
Amount
(Unaudited)
$ 63.s84
,ro i 1?
1,463
970
54
w20l
December 31,
2005
Nct Carrying
Amount
(Unaudited)
$ 64,351
305,958
2,378
855
w1ë42
Decenrber 31, December 31,
2006 200s
Net Carrying Net Carrying
Amount Amount
(Unaudited)
$ 10,452
276
$ 10,728

Cominar Acquisition Properties
Lease origination costs for in-place leases
Above ma¡ket in-place leases
Cost
$40.037
1,91 1
$4 l,948
- 296 -
March 31, 2007
Accumulated NetCarrying
Amortization Amount
$19,213
t,207
(Unaudited)
ç20,E24
704
V,sß.
December 31, December 31,
2006 200s
Net Carrying Net Carrying
Amount Amount
(Unaudited)
$22,818 927,442
808 1,246
s20,420 923,626 $28,688

- 297 -
41. UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF
ALEXIS NIHON, 31 MARCH 2007, PREPARED IN ACCORDANCE \ryITH
CANADIAN GAAP

Alexis Nihon Real Estate lnvestment Trust
Gonsolidated Financial Statements
March 31,2007
(unaudited)
- 298 -

Alexis Nihon Real Estate Investment Trust
Consolidated Financial Statements
March 31,2007
(unaudited)
Gontents
Consolidated Balance Sheets
Consolidated Statements of Unitholders' Equity
Consolidated Statements of Operations
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
- 299 -

Alexis Nihon Real Estate Investment Trust
Consolidated Balance Sheets
(in thousands of dollars)
Assets
lncome-producing properties (note 4)
Intangible assets (note 5)
Land held for development
Other assets (note 6)
Due from companies under common control of certain
trustees of the REIT
Liabilities
Debts on income-producing properties (note 7)
Convertible debentures - liability component
Intangible liabilities (note 8)
Bank indebtedness (note 9)
Accounts payable and accrued liabilities
Distributions oavable
Equity
See accompanying notes
- 300 -
March 31, December 31,
2007 2006
(unaudited)
$ 696,725
32,690
4,505
23,938
$ 697,016
35,360
4,418
19,787
280
$ 757,858 $ 756,861
$ 413,059 $
4,738
2,240
58,330
24,201
2,712
419,201
39,370
2,416
40,007
19,968
2,475
505,280 523.437
$ 757,858 $ 756,861

Alexis Nihon Real Estate Investment Trust
Consolidated Statements of Unitholders' Equity
For the Three Months Ended March 3l
(in thousands of dollars)
(unaudited)
Unitholders' Equity -
December 31, 2006
Net loss
Conversion of
convertible debentures
(note 10)
Distributions
Units
in$
$ 286,542
34,469
Net
lncome
$ 47,256
(6,218)
Other
Equity
Components Distributions Total
$ 2,400
(t,095)
s(102,774) $233,424
(6,218)
33,374
(8,002) (8,002)
Unitholders'Equity -
March 31,2007 $321,011 $ 41,038 $ 1,305 $(110,776) 9252,578
Unitholders' Equity -
December 31, 2005
Net income
Units issued (note 10)
Distributions
$270,205
398
$ 40,298
1,426
$ 2,852 $ (74,249)
(7,088)
$ 239,106
1,426
398
(7,088)
Unitholders' Equity -
March 31, 2006 $ 270,603 $ 41,724 8 2,852 $ (81,337) $ 233,842
See accompanying notes
- 301 -

Alexis Nihon Real Estate Investment Trust
Consolidated Statements of Operations
For the Three Months Ended March 3l
(in thousands of dollars, except per un¡t amounts)
(unaudited)
Revenues from Rental Operations (note 11) $ 33,858 $ 32,685
Rental Propertv Operatinq Costs 17,109 16,221
Net Operatinq Income 16,749 16,464
Expenses
Interest (note 12)
Amortization of buildings
Other amortization (note 13)
General and administrative
Trust expenses
Offer costs
7,159
4,199
3,717
170
182
7,540
7,255
4,020
3,063
550
150
22,967 15,038
Net (Loss) Income $ (6,218) g 1,426
Basic Net Income Per Unit (note 14) $ (0.218) $ 0.055
Diluted Net Income Per Unit (note 14) $ (0.218) $ 0.055
See accompanying notes
- 302 -

Alexis Nihon Real Estate Investment Trust
Consolidated Statements of Gash Flows
For the Three Months Ended March 3l
(in thousands of dollars)
(unaudited)
Cash Flows generated from (used for) -
Operating Activities
Net (loss) income
Items not affecting cash:
Amortization of buildings
Other amortization
Amortization of above and below market in-place leases
Amortization of deferred financing costs
Amortization of deferred recoverable costs
Accrued rental revenue
Changes in:
Other assets (note 16)
Accounts payable and accrued liabilities
Additions to tenant improvements and leasing costs
Write-offs (Additions) to deferred recoverable costs
Refund of deposits on potential acquisitions
2007 2006
$ (6,218)
4,199
3,717
58
210
97
(235)
(7,860)
4,233
(3,783)
30
I,398
$ 1,426
4,020
3,063
(56)
165
89
(335)
(1,732)
(3,371)
(2,684)
(1 84)
Cash Flows (used for) generated from Operating Activities (4,154) 401
Financing Activities
Increase in debts on income-producing properties
Repayment of debts on income-producing properties
Amortization of fair value debt adjustment
Accretion on liability component of conveñible debentures
Additions to deferred financing costs
Bank indebtedness
Distributions
1s,tzi¡
(3r)
l5
(36)
18,323
(7,7651
30,809
(11,401)
(23)
33
(37)
(11,678)
(6,703)
Cash Flows qenerated from Financing Activities 5,335 1,000
Investing Activities
Additions to property held for development
Additions to buildings
Additions to furniture, fixtures and computers
Deposits on potential acquisitions
Due from companies under common control of
certain trustees of the REIT
(87)
,r,trnl-
280
(848)
(22)
(736)
Gash Flows generated from (used for) Investing Activities (1,181) (1,401)
Decrease in Cash and Cash Equivalents
Cash and Gash Equivalents - Beginning of Period
Cash and Gash Equivalents - End of Period
See accompanying notes
- 303 -
205

Alexis Nihon Real Estate Investment Trust
Notes to Gonsolidated Financial Statements
March 31,2007
(dollar amounts are in thousands, except per unit amounts)
(unaudited)
1. Description of the REIT
Alexis Nihon Real Estate Investment Trust (the 'RE|T") is an unincorporated closed-ended investment trust
created by a contract of trust (the "Contract of Trust"). The REIT was established under, and is governed by, the
laws of the Province of Quebec.
The accompanying unaudited interim consolidated financial statements are prepared in accordance with
Canadian Generally Accepted Accounting Principles ('GAAP'). These consolidated financial statements are
prepared using the same accounting policies and application thereof as the consolidated financial statements for
ihe year ended December 31, 2006. They do not include allthe information and disclosure required by Canadian
GAAP for annual financial statements, and should be read in conjunction with the December 31,2006
consolidated financial statements.
Sale Process
On February 27,2007, an Offer was made by Homburg Acquisition Inc.("Homburg"), a wholly-owned subsidiary of
Homburg Invest Inc., to purchase all of the issued and outstanding Units of the REIT for $18.60 in cash per Unit.
On Aprii 6, 2007, Homburg announced that: (i) all of the conditions to the completion of the Offer had been
satisfied or waived; and thãt (ii) Homburg had taken up all of the Units validly deposited under the Offer as at
midnight (Montreal time) on April 5, 2007, representing approximately 70o/o of the issued and outstanding Units
(on a-fully-diluted basis). Homburg subsequently paid for the Units tendered to the Offer on April 11, 2007. As a
iesult, since April 6, 2007 Hombulg owns 25,938,238 Units, representing approximately 87o/o of the issued and
outstanding Units (on a fully-diluted basis).
2. Change in Accounting Policies
- 304 -
Effective January 1,2007, the REIT adopted the following three new Handbook sections issued by the Canadian
Institute of Chartered Accountants ("C|CA"), Section lS30 "Comprehensive Income", Section 3855 "Financial
Instruments - Recognition and Measurement", and Section 3865 "Hedges".
Section 3855, "Financial lnstruments - Recognition and Measurement" requires all financial instruments to be
recorded initially at fair value. Financial instruments include financial assets, financial liabilities, derivatives and
embedded derivatives. The Section also requires all financial instruments to be classified as either
held-to-maturity, loans and receivables, held for trading, or available-for-sale. The held{o-maturity classification is
restricted to fixed maturity instruments that the REIT intends and is able to hold to maturity. Loans and
receivables and held-to-maturity investments are accounted for at amoftized cost. Securities that are acquired for
selling in the near term are clássified as held for trading and are accounted for at fair value with realized and
unreaìized gains and losses reported in net income. The remaining financial instruments are classified as
available-forlsale and are measured at fair value with unrealized gains and losses but reported in a new category
in unitholders' equity called other comprehensive income. Once the gains and losses become realized, they are
recognized in income.
Section 3865, "Hedges" which replaces AcG-13 "Hedging Relationships" establishes standards for when and how
hedge accounting may be applied. Consistent with Section 3855, it requires that all derivatives, including hedges,
be rieasured at fãir value. ihanges in the fair value of a derivative which hedges the REIT's exposure that the fair
value of an asset or liability will change due to a particular risk are recognized in net income together with those of
the respective offsetting hedged item-. However, changes in the fair value of a derivative which hedges the REIT's
exposure to changing lash flows are accumulated in other comprehensive income until the transaction being
hedged affects net income.

Alexis Nihon Real Estate lnvestment Trust
Notes to Consolidated Financial Statements
(unaudited)
2. Change in Accounting Policies (cont'd)
Section 1530, "Comprehensive Income", a new category in the unitholders' equity statement, includes net income
for the period, unrealized gains and losses on available-for-sale securities, changes in the fair market value of
derivative instruments designated as cash flow hedges and foreign currency translation adjustments of
self-sustaining foreign operations, all net of income taxes.
These new standards have been applied without restatement of prior periods. The impacts of adopting these
recommendations are as follows:
A reclassification of transaction costs for an amount of $1,226 prevíously shown separately on the
balance sheet as deferred financing costs to the carrying amount of its related debt. Of the said amount,
$930 off-set the carrying amount on debts on income-producing properties, $170 off-set the carrying
amount of the convertible debentures, and $126 off-set the carrying amount of the bank indebtedness.
There was no impact on the REIT as a result of adoption of Section 3865 - Hedges.
There was no impact on the REIT as a result of adoption of Section 1530 - Comprehensive income.
3. New Account¡ng Pronouncements
- 305 -
EIC-164 - Gonvertible and Other Debt Instruments with Embedded Derivatives
EIC-164 addresses the situation where a company issues a debt instrument that is convertible at any time at the
holder's option into a fixed number of common shares. Upon conversion, the issuer is either required or has the
option to satisfy all or part of the obligation in cash. The instrument may also permit the issuer to redeem the
instrument prioi to maturity, and/or permit the holder to force the issuer to redeem the instrument prior to maturity.
This Abstract provides guidance on various issues related to such debt instruments, including:
Whether the instrument contains both a liability element and an equity element that are required to be
accounted for seParatelY.
Whether the instrument contains any embedded derivatives that are required to be accounted for
separately.
How the issuer should account for the instrument (e.9. fair value, amortized cost).
How the liability element of the instrument should be classified in the financial statements (current or
long-term).
How any embedded derivative in the instrument and the host debt instrument should be presented in the
financial statements.
How to account for any future tax aspects of the instrument.
How the instrument should be treated in earnings per share computations.
The answer to each of these issues is dependent on the specific features of the debt instrument issued by a
company. The accounting treatment in this Abstract should be applied retrospectively to financial instruments
accounted for in accordance with Section 3855 in financial statements issued for interim and annual periods
ending on or after June 30, 2007.

Alexis Nihon Real Estate Investment Trust
Notes to Gonsolidated Financial Statements
(unaudited)
4. Income-Producing Properties
Land
Building and tenant improvements
Leasing costs
Tenant improvement recorded
on acquisitions
Deferred recoverable costs
5. Intangible Assets
Lease origination costs for
Accumulated
Cost Amortization
$ 138,855
606,068
7j46
2,499
4,167
$- 58,903
1,914
476
717
March 31,
2007
Net Garrying
Amount
$ 138,855
547,165
5,232
2,023
3,450
December 31,
2006
Net Carrying
Amount
$ 138,855
547,381
5,111
2,092
3,577
$ 758,735 $ 62,010 $ 696,725 $ 697,016
Accumulated
Cost Amortization
March 31, December3l,
2007 2006
Net Carrying Net Carrying
Amount Amount
in-place leases $ 56,065 $ 24,288 $ 31,777 $ 34,329
Above market in-place leases 2,271 1.358 913 1,031
6. Other Assets
Accounts receivable
Deferred rent receivable
Prepaids
Deposits on potential acquisitions
Restricted funds
Furniture, fixtures and computers
Deferred financing costs
Others
- 306 -
$ 58,336 $ 25,646 $ 32,690 $ 35,360
March 31,
2007
$ 2,655
4,776
12,490
150
2,837
584
446
December 31,
2006
2,897
4,541
1,285
1,548
6,290
627
2,503
96
$ 23,938 $ 19,787

Alexis Nihon Real Estate Investment Trust
Notes to Gonsolidated Financial Statements
(unaudited)
7. Debts on Income-Producing Properties
Loans secured by mortgages on income-producing properties, bearing
interest at a weighted average annual rate of 5.99o/o, repayable in
blended monthly instalments of $3,015 maturing at various dates
no later than December 2021.
Accrued interest
Unamortized financing costs
Fair value debt adjustment
March 31, December3l,
2007 2006
$ 411,808 $
1,999
413,807
Principal repayments of debts on income-producing properties are due as follows:
lnstalments Due on
Þavments maturity
2007
2008
2009
2010
2011
$ 8,016
8,773
6,950
6,913
6,770
416,971
2,017
418,988
(e30)
182 213
$ 413,059 $ 419,201
$ 77,015
50,034
57,211
22,738
5,064
$ 85,031
58,807
64,161
29,651
11,834
to 2011 44j36 118,188 162.324
8. lntangible Liabilities
- 307 -
Accumulated
Cost Amortization
81,558 330,250 411.808
$ 413,807
March 31, December 31,
2007 2006
Net Garrying Net Carrying
Amount Amount
Below market in-place leases 4,384 $ 2,144 $ 2,240 2,416

Alexis Nihon Real Estate Investment Trust
Notes to Gonsolidated Financial Statements
(unaudited)
9. Bank Indebtedness
The REIT's $7O,O0O credit facility is subject to annual review and consists of a general operating loan available by
way of prime rate loans, bankers' acceptances and letters of credit. Borrowings by way of prime rate loans bear
intérest at prime plus 0.5% per annum. Borrowings by way of bankers' acceptances bear interest at a rate equal
to the bankers'acceptance rate plus stamping fees equivalentto2.2So/o perannum. The letterof creditfacility is
limited to g10,000 and bears interest at 1.25% per annum. The credit facility is secured by a first ranking hypothec
on three income-producing properties having a net carrying amount of $45,664 and a second ranking hypothec on
two income-producing properties having a net carrying amount of $240,855. The terms of the banking
agreement require the REIT to meet certain financial covenants, such as gross book value, debt service
cõverage, fair value of the properties given as security and occupancy rate. No default occured during the period
ended March 31,2007.
10. Units lssued and Outstand¡ng
The interests in the REIT are represented by a single class of units which are unlimited in number. Each unit
entitles the holder to a single vote and carries the right to participate in all distributions.
Changes to the balance of units issued and outstanding were as follows:
Three Months Ended Three Months Ended
March 31,2007
March 31. 2006
Balance - beginning of period
lssuance of units:
Distribution reinvestment plan
Conversion of convertible
debenture
Number
of units Amounts
Number
of units Amounts
26,988,564 $ 286,5+Z 25,754,095 g 270,205
2,590,450
34,469
- 30,406 398
Balance - end of period 29,579,014 $ 321,011 25,784,501 $ 270,603
During the three-month period ended March 31,2007, $35,360 (March 31, 2006 - $Nil) of face value of the 2004
Convertible Debentures were converted into 2,590,450 units of the REIT at a conversion price of $13.65 per unit.
The face value of the 2004 Convertible Debentures, net of a discount of $884, plus a proportionate share of the
equity component in the amount of $1,096, net of the applicable unamortized deferred financing costs of $1,103,
was added to REIT unit capital.
Distribution Reinvestment Plan
The REIT maintains a distribution reinvestment plan pursuant to which unitholders may elect to have all cash
distributions of the REIT automatically reinvested in additional units. The plan gives to the reinvestment plan
participants a number of units amounting to 103% of their cash distribution. As at December 31, 2006, the plan
was suspended due to the Support Agreement (see note 1).
Unit-Based Compensation Plans
- 308 -
During the three months ended March 31,2007 , the REIT recorded a total compensation expense of $14 (three
months ended March 31, 2006 - 32$) for the various plans'

Alexis Nihon Real Estate Investment Trust
Notes to Consolidated Financial Statements
(unaudited)
11. Revenues From Rental Operations
Rental revenue contractually due under the leases
Accrued rental revenue
Amortization of above market in-place leases
Amortization of below market in-place leases
12. lnterest
lnterest on debts on income-producing properties,
at stated rate
Interest on convertible debentures, at stated rate
Accretion on liability component of convertible debentures
Amortization of deferred financing costs
Amortization of fair value debt adiustment
Other interest
Three Months Ended
March 31,2007
$ 33,565
235
(1r8)
176
Three Months Ended
March 31,2007
Three Months Ended
March 31. 2006
g 32,294
335
(146)
202
$ 33,858 $ 32,685
6,068
181
15
210
(3r)
716
Three Months Ended
March 31, 2006
5,821
853
33
165
(23)
406
7,159 $ 7,255
lnterest paid during the three months ended March 31,2007 was $6,983 (three months ended March 31, 2006 -
$6, I 63).
13. Other Amortization
Amortization of tenant improvements and
leasing costs incurred through leasing activities
Amortization of furniture, fixtures and computers
Amortization of lease origination costs for
in-place leases incurred through acquisitions
Amortization of tenant improvements incurred
throuqh acquisitions
- 309 -
Three Months Ended
March 31,2007
1,053
43
2,552
69
Three Months Ended
March 31, 2006
$ 695
44
2,292
32
3,717 $ 3,063

Alexis Nihon Real Estate lnvestment Trust
Notes to Gonsolidated Financial Statements
(unaudited)
14. Net lncome Per Unit Galculations
Basic and diluted per unit amounts are based on the following:
Three Months Ended
March 31,2007
Basic Diluted
Three Months Ended
March 31, 2006
Basic Diluted
Net (loss) income $ (6,218) $ (6,218) $ 1,426 $ 1,426
Weighted average number of units outstanding 28,490,374 28,490,374 25,764,652 25,764,652
The convertible debentures have been excluded from the calculations of the diluted net income per unit for the
three month periods ended March 31,2007 and 2006 since they are anti-dilutive.
15. Segmented lnformation
Three Months Ended
March 31.2007
Revenues from rental operations $ 16,228 $
Rental property operating costs 8,911
Retail
9,597 $
4.655
Multi-family
lndustrial residential Total
6,748 $ 1,285 $
2,722 821
33,858
17,109
Net operating income $ 7,317 $ 4,9+2 $ 4,026 $ 464 $ 16,749
I ncome-producing properties $ 314,083 $ 188,581 $ 160,954 $ 33,107 $ 696,725
lntangible assets $ 12,195 $ 11,163 $ 9,332 $ - $ 32,690
Three Months Ended
March 31. 2006
Revenues from rental operations
Rental propertv operatinq costs
Net operating income
- 310 -
16,081 8,985
8,846 4,117
Multi-family
lndustrial residential
6,287
2.409
7,235 4,868 3,878 $
$ 1,332 $
849
Total
32,685
16.221
483 $ 16,464
I ncome-producing proPerties $ 312,675 $ 177,513 $ 144,897 g 32,541 $ 667,626
Intangible assets s 15,287 $ 10,316 $ 11,375 $ $ 36,978

Alexis Nihon Real Estate Investment Trust
Notes to Consolidated Financial Statements
(unaudited)
16. Supplemental Cash Flow Information
Change in Other Assets
Accounts receivable
Prepaids
17. Contingency
Three Months Ended
March 31,2007
S z+z
(11,205)
3,453
Three Months Ended
March 31, 2006
$ 1,083
(4,819)
2,032
$ (7,860) $ (1,732)
On January 26,2OO7,legal proceedings were instituted by Senator Paul J. Massicotte, the former President and
Chief Executive Officer oi t ä Rf tt, against the REIT, its Trustees, and Alexis Nihon Management (Canada) lnc.'
ã wholly-owned subsidiary of the REli, under the employment agreement claiming $500 of bonuses that are now
claimed to be payable aiwell as $1,200 as severanöe änd compensation in the event of a change of control of
the REIT. lt ¡s si¡il the REIT's view, based on advice of legal counsel, that, as a result of his resignation on
December 6, 2006, no payments are owed.
18. Subsequent Events
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Subsequent to March 31, 2007, and as at May 7, ?007, $940 of the face value of the 2004 Convertible
Debentures were converted into 68,861 units of the REIT at a conversion price of $13.65 per unit'

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