Well filled project pipeline: The Grounds purchases sites in Neu-Isenburg and Frankfurt am Main to develop micro apartment facilities
Berlin, 6 October 2017. The Management Board of The Grounds Real Estate Development AG (ISIN DE000A0STSH7) has been able to report on successful transactions of the new operating subsidiary The Grounds Real Estate AG: In the past few days, two purchase contracts for properties in Frankfurt am Main and Neu-Isenburg have been concluded.
The Grounds Group is planning to develop a micro apartment facility on a 5,683 m² site in Frankfurt’s Gutleutviertel, close to the main railway station. The four-storey boarding house is to be equipped with an underground car park as well as restaurants, conference rooms and a gym. Construction is expected to start at the beginning of 2019. The intention is to market the majority of micro apartments individually for commercial use prior to commencement of construction.
A further micro apartment facility for commercial living, or alternatively a hotel, with an adjacent underground car park at Frankfurt Airport is planned on a site, which was purchased on 2 October 2017. The 8,400 m² site is located directly at Terminal 3 of Frankfurt Airport in Neu-Isenburg, which is currently under construction. Since it is not yet clear whether the multi-year lease agreements with existing tenants for the current building on this site are going to be extended, the exact planning period is still uncertain. Construction is intended to start at the beginning of 2020; corresponding with this, completion is scheduled for the simultaneous launch of operations at Terminal 3.
Both projects will increase the total area of the The Grounds portfolio, which now has a total of five high-quality project developments, by a total of around 20,000 m². These include the Blue Towers in Frankfurt’s city district of Niederrad, where two former office towers are being renovated and converted into more than 350 micro apartments (further information: http://blue-towers.de/).
The Grounds Group is also conducting negotiations to acquire additional promising projects, some of which are planned for the long-term real estate portfolio. The Management Board of The Grounds Real Estate Development AG is confident that it will be able to conclude further purchase contracts in the current year still.
Based on the existing portfolio, the Management Board of The Grounds Real Estate Development AG had revised their forecast for the 2017 and 2018 financial years earlier this week. In this context, the new subsidiary, The Grounds Real Estate AG, will be consolidated retroactively as per 1 January 2017 with an entry of the corresponding non-cash capital increase expected in the coming weeks. At IFRS Group level, the Management Board now expects consolidated sales revenues of EUR 19,265 thousand for 2017, earnings before taxes of EUR 1,587 thousand and consolidated profit after tax of EUR 1,648 thousand. For 2018 the management board expects consolidated sales revenues of EUR 16,011 thousand, earnings before taxes of EUR 880 thousand, and consolidated profit after tax of EUR 630 thousand.
In addition to the expansion of the operating business, the basis for a successful reorientation of the company has been created with the soon-to-be-expected registration of the Annual General Meeting resolutions concerning the capital increase and the relocation of the company to Berlin. The next steps concern the conversion of existing bearer shares into registered shares and the implementation of a cash capital measure.
The Grounds Real Estate Development AG has a new Internet presence. All information about the company and their projects can be viewed under http://www.thegroundsag.com/en.