The Grounds Real Estate Development AG acquires land at a central location in Magdeburg to develop an urban district
- A mix of extended stay apartments, rented and owner-occupied apartments, age-appropriate accommodation and child day-care on a site area of approx. 38,200 m2
- Housing portfolio in Emden sold
Berlin, 15 May 2018 – The Grounds Real Estate Development AG (ISIN DE000A2GSVV5), a portfolio holder with a clear focus on acquisition, project development and the sustainable management of residential real estate properties in Germany, has signed a purchase contract for a site in the “Alte Neustadt” district in Magdeburg city centre. In consultation with Magdeburg’s City Council, an urban district for all generations will be constructed on a total area of around 38,200 m2 on the inner-city site of the former Börde brewery. Plans include the development of an extended stay apartment block, several multi-family houses with rented and owner-occupied apartments together with sheltered accommodation and the construction of a child day-care centre, as well as 600 car-parking spaces. A total of 750 residential units with a usable area of 40,000 to 45,000 m2 will be built, of which 120 units are accounted for by the extended stay apartment block and 180 by sheltered housing.
The intention is for the development plan to be coordinated and adopted by Magdeburg City Council by the end of the current year. This project development is not intended for our own portfolio, and a sale (either entirely or in blocks) can then take place after adoption of the building development plan from 2019 onwards. Including the purchase price, The Grounds expects investment costs of approx. EUR 10 million by the time the building development plant is adopted.
Furthermore, the Emden housing portfolio has been successfully sold to a major institutional holder of residential property portfolios.
The Grounds Real Estate Development AG
Leipziger Platz 3, 10117 Berlin
T. +49 (0) 30 2021 6866
F. +49 (0) 30 2021 6849
Haus der Wirtschaft, Kapstadtring 10
T. +49 (0) 40 6378 5410
F. +49 (0) 40 6378 5423
Acquisition, project development and sustainable residential property management
The Grounds Group focuses on buying and developing residential property and, as a full-service provider for the business areas Investment (including property and asset management), Development and Trading, they have made it their goal to provide affordable living space for different life stages. The emphasis is on residential property, particularly also special real estate such as student and retirement living in German metropolitan regions and attractive locations such as aspiring outskirts in Germany. As a portfolio holder their medium-term aim is to establish a significant high quality real estate portfolio at a magnitude of EUR 500 million through investments and in-house development, allowing stable profits together with attractive dividend payments to The Grounds shareholders. The Grounds seeks to position themselves as one of the leading German real estate companies by creating added value within the scope of housing development and subsequent development of market capitalisation.
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