The Grounds successfully closes the 2020 financial year and is considering capital measures to implement further growth plans
- Major shareholders indicate participation in possible capital measures
- Successful closing of acquisition purchases in Berlin, Brandenburg and Sachsen-Anhalt, and of a sale in Grünheide (Mark)
- Significant strategic course-settings through non-cash capital increase and residential alignment of the portfolio
Berlin, 11.01.2021 – The Grounds Real Estate Development AG (The Grounds/ ISIN: DE000A2GSVV5) successfully achieved considerable strategic and operational successes in the 2020 financial year, and intends further expansion for 2021. To finance the next growth steps, the company plans to carry out capital measures that may include equity capital, external capital and/or hybrid measures. This involves initial considerations up to now; no final decisions have yet been taken. The company is currently in initial discussions with advisers and possible investors. Major shareholders of The Grounds have already indicated that they wish to take part in any possible capital measures.
Successful strategic realignment completed
Jacopo Mingazzini, a member of the Management Board of The Grounds, says: “Successful conclusion of the 2020 financial year forms a solid basis for further growth in the coming months and years. We successfully completed a strategic realignment in 2021. This included mainly the company’s consistent residential realignment – both in the project developments area and in the existing portfolio – in addition to reappointments to Management Board positions and the non-cash capital increase to take over Capstone Opportunities AG. Sale and purchase transactions successfully completed up to the end of 2020 decisively contributed to this.”
A privatisation project in Berlin together with one plot of land each in Erkner and Magdeburg, as well as an existing portfolio of residential real estate properties at several locations in Sachsen-Anhalt and Brandenburg, were also acquired in the last quarter of 2020.
The sale of commercial land in Grünheide (Mark) near Berlin also occurred in December 2020, leading to a considerable inflow of liquidity and enabling a renewed increase to the current figure of EUR 4 million for the forecast consolidated profit after taxes, which had already been raised to EUR 2 million in September 2020.
Exploration of financing options for further growth steps
The Grounds considers itself well-equipped for further expansion steps in the 2021 financial year. According to Arndt Krienen, Management Board of The Grounds: “We intend to continue our dynamic growth undiminished in the new year, for which we plan more acquisitions. To this end, we are currently examining various forms of capital measures and financing options, and together with our advisers and investors we will explore which solutions are the most suitable for The Grounds. The fact that considerable parts of our shareholder base have already signalled that they want to participate in any capital measures is an important positive signal for us, and an expression of their confidence in the growth potential of The Grounds. At the same time, we see in it a recognition of the successes achieved for 2020 and a strategic course on which we also want to move forward consistently in 2021.”
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.