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Essay Name       : 1007.txt 
Uploader         : Drake Tasker
Email Address    : 
Language         : English
Subject          : Economics
Title            : The Merge of Trizec and Horsham
Grade            : 80%
School System    : University
Country          : Canada
Author Comments  : Good Essay, lot of time put in.
Teacher Comments : Language was only problem, excellent research
Date             : Nov.13th
Site found at    : Search
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	The real estate industry has been hit hard in the 1990’s.  Many companies have 

been struggling to maintain their position in a rapidly decreasing real estate market.  The 

largest Canadian based real estate company to experience an accumulation of debts is, the 

once Calgary based, Trizec Corporations.1  Trizec Corporations is experiencing over 600 

million dollars worth of outstanding debts and was near bankruptcy until the Toronto 

based investment group, Horsham Incorporated, invested 600 million dollars in return for 

43% of the company in 1994.2  The merge between Trizec Corporations and Horsham 

Incorporated would benefit both companies and propel these two companies into future 

European projects.

	Trizec Corporations was established in 1960 in Calgary, Alberta.  Now, under the 

control of Gregory Wilkins, Trizec is the countries largest publicly traded real estate 

group.3  Their assets consist of 85 properties world wide, including Place Ville Marie in 

Montreal and the U.S. based Hahn Company.4

	Horsham Incorporated is led by Peter Munk who owns 10% of the equity and 80% 

of votes through ownership of multiple voting shares.  Horsham Incorporated has assets 

including Clark Refining and Marketing Incorporated, 20% of American Barrick and real 

estate in Berlin.5

	The proposal in 1994 had Horsham paying 500 million dollars to receive a portion 

of the debt that is convertible to common shares and then another 100 million dollars for 

additional equity.  The deal put a total value of 1.2 billion dollars into debt and 

outstanding equity in Trizec.6  Horsham now owns 48% of Trizec and is trying to acquire 

52% which was recently approved by the boards of both companies.  The new company 

consisting of these two groups will be renamed Trizec Hahn Corporation.7

	Both companies feel that the merge would benefit their future expansions because 

by investment from an outside source Trizec would be able to improve their position in 

the real estate market.  The deal would also allow Trizec to keep their management in 

control.  Horsham believes that an investment in the largest real estate market in Canada 

would initiate an attempt to salvage the real estate market.8 

	The merge of these two companies would also allow both Horsham and Trizec to 

become more accessible to the European market.  Horsham is using Trizec’s real estate 

advantage to expand in retail and commercial industries in Germany, Hungary, and 

Central Europe.  The major project that Horsham is now involved in is in Ludwigsfelde, 

Germany.  If successful Horsham will own the first outlet mall to receive endorsement 

from a member of the royal family.  Prince Charles will invest in the Horsham project in 

order to improve the urban environment of Germany.  Trizec is using the European 

connections of Horsham to propel themselves into the real estate market of Europe.  

Trizec has already been working with Polus Investments Ltd. of Budapest, therefore, the 

two companies are planning on working independently on their initial projects in Europe.9

	Trizec Corporations and Horsham Incorporation are now working together and 

have expanded into Europe.  A once struggling Trizec has now been saved by Horsham 

and is ready to re-establish themselves in the Canadian real estate market.  Trizec Hahn 

Co. has now become the company that will lead the global real estate market into the next 

millennium.   








Endnotes


	1Kimberley Noble, "Horsham Throws Trizec a Lifeline," The Globe and Mail, 
29 March 1994, sec.B, p. 1,14.

	2Kimberley Noble, "Horsham Throws Trizec a Lifeline," The Globe and Mail,
29 March 1994, sec B, p. 1,14.

	3Alan Freeman, "Horsham Properties Brings Royal Touch to German Project,"
The Globe and Mail, 4 October 1996, sec B, p. 1,12.

	4John Meyer, Trizec- A Tradition of Excellence (Calgary: Corporate and Public Relations, 1985), 11.

	5Kimberley Noble, "Horsham Throws Trizec a Lifeline," The Globe and Mail,
29 March 1994, sec B, p. 1,14.

	6Kimberley Noble, "Horsham Throws Trizec a Lifeline," The Globe and Mail,
29 March 1994, sec B, p. 1,14.

	7"Horsham Offer for 52% of Trizec Approved," The Globe and Mail,
30 September 1996, sec B, p. 10.

	8Kimberley Noble, "Horsham Throws Trizec a Lifeline," The Globe and Mail,
29 March 1994, sec B, p. 1,14.

	9Alan Freeman, "Horsham Properties Bring Royal Touch to German Projects,"
The Globe and Mail, 4 October 1996, sec B, p. 1,12.














Bibliography

	
	Freeman, Alan. (1996, October 4).  Horsham Properties bring royal touch to     
   German project.  The Globe and Mail, sec. B, p.1,12.

	Horsham offer for 52% of Trizec approved. (1996, September 30).  The Globe    
   and Mail, 10.

	Meyer, John. (1985).  Trizec-A Tradition of Excellence.  Calgary: Corporate and
   Public Relations.

	Noble, Kimberley.  (1994, March 29).  Horsham throws Trizec a lifeline.  The
   Globe and Mail, sec. B, p. 1,15.

	Robertson, Hugh. (1995).  The Research Essay.  Toronto: McGraw-Hill Ryerson
   Ltd.








































The Merge of Trizec and Horsham






















October 10, 1996 
 
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