The Grounds sells commercial property in Grünheide (Mark) and doubles 2020 earnings forecast
- A further increase in the 2020 earnings forecast from EUR 2 million to the present EUR 4 million after taxes
- An additional purchase price payment of up to EUR 9.75 million in the future
- Another step on the pathway to a purely residential alignment
Berlin, 10.12.2020 – The Grounds Real Estate Development AG (The Grounds/ ISIN: DE000A2GSVV5) concluded today a contract for the sale of a commercial property that will already be recognised in the current year’s income statement. The contract provides for a basic purchase price, due for payment immediately and significantly above the current book value of EUR 11.5 million, and a possible additional purchase price payment of up to EUR 9.75 million after successful completion of a development planning process.
The land that has been sold is located in Grünheide (Mark), only a few kilometres from the city boundary of Berlin. The planned Gigafactory of the electric car manufacturer Tesla is currently being constructed in its immediate vicinity.
Against the background of this transaction, the company’s Management Board has again increased the results forecast for the 2020 financial year, which had already been raised in September. Instead of the previous EUR 2 million, consolidated profits amounting to EUR 4 million after taxes are now expected.
Commenting on the transaction, Jacopo Mingazzini, a member of the Management Board of The Grounds, says: “The sale is an important milestone for our further development. We have not only taken a big step towards our ultimate aim of a purely residential make-up, but have also achieved an excellent economic result that will help us to implement our ambitious growth targets. We will use the considerable liquidity from the transaction mainly to accelerate this growth.”
The Grounds Real Estate Development AG
Arndt Krienen/Jacopo Mingazzini, Board Members
Charlottenstrasse 79-80, 10117 Berlin, Germany
Tel.: +49 (0) 30 2021 6866
Fax: +49 (0) 30 2021 6849
About The Grounds
The Grounds Group realises housing projects in German metropolitan regions. In addition, The Grounds Group holds a steadily growing residential portfolio as fixed assets. The Grounds Real Estate Development AG is listed in the Düsseldorf Stock Exchange’s OTC segment Primärmarkt (ISIN: DE000A2GSVV5), has its seat in Berlin and an office in Stuttgart.