- Reorientation creates stock listed expert company for residential and special housing
- Entry of non-cash capital increase expected in October
Berlin, 28 September 2017 – On this day various resolutions, which were made at the Netwatch AG (ISIN DE000A0STSH7) Annual General Meeting on 22 June 2017 regarding the reorientation of the company were entered into the Commercial Register. Accordingly, and with immediate effect, the company operates under the new name The Grounds Real Estate Development AG (The Grounds).
In future, The Grounds will act as the holding company for The Grounds Group, which is active on the real estate market. It will be founded with the current execution of the decided non-cash capital increase of 94.9 % shares in The Grounds Real Estate AG. The non-cash capital increase is expected to be entered into the Commercial Register in October 2017.
With The Grounds Real Estate AG, a subsidiary that has been active in the real estate sector since 2014, The Grounds Group will focus on purchasing, project development and sustainable management of residential property in Germany as a portfolio holder. In doing so, the full-service provider with the business areas Investments (incl. property and asset management), Development and Trading will specialise in residential property for all target groups. Their focus is on special real estate such as student and retirement living in German metropolitan regions and further attractive locations such as aspiring outskirts in Germany. The medium-term goal is to set up a significant and high quality real estate portfolio in the magnitude of around EUR 500 million.
Since their foundation in August 2014, The Grounds Real Estate AG has already wound up several large asset and share deals with residential and commercial portfolios via their property companies. Currently three projects are in the company portfolio, including the Blue Towers in Frankfurt am Main (restoration and modification of two office buildings into micro apartments). Moreover The Grounds Real Estate AG is currently negotiating the purchase of further property and portfolios, thus having a well-filled project pipeline at their disposal.
Likewise, resolutions were taken to increase the Supervisory Board to four members and transforming existing bearer shares into registered shares. Consequently, the new Supervisory Board comprises one chairman, Dr Peter Maser, his deputy, Manuel Köppel, and the members Carsten Haug and Steffen Buckwitz. Thus the Supervisory Board includes experienced real estate experts who have been working with the Management Board members Hans Wittmann, Andreas Steyer and Eric Mozanowski for many years in executive leadership positions with listed and unlisted real estate companies. The Grounds will inform their shareholders separately regarding the transformation of bearer to registered shares.
Apart from the non-cash capital increase, which will increase the company’s share capital from currently EUR 400 thousand to EUR 12,900 thousand, the registration of the relocation of the company domicile to Berlin is still pending.
As the reorientation is not yet reflected in the financial figures for The Grounds as per 30 June 2017, the company has included an IFRS pro forma consolidated financial statement in the current 2017 half-year report for greater transparency. The 2017 half-year report thus provides initial insights into the company’s new operative business and is available for download under the Investor Relations section of the old website www.netwatch.de with immediate effect. The new home page is near completion.