The Grounds Real Estate Development AG: Micro-apartment blocks in Magdeburg scheduled for completion by late summer 2021. Marketing of individual residential units starts from Q3 2019 onwards.
Berlin, 28 May 2019. Preparations for the micro-apartment blocks in Magdeburg planned by The Grounds Real Estate Development AG (ISIN DE000A2GSVV5) are also forging ahead.
The Grounds expects a building permit for No. 153 Halberstädter Strasse to be granted in the third quarter of 2019. Sales of individual residential units should then begin. The property comprises approx. 3,580 m² of total living space. The micro-apartments being built here will have age-appropriate construction. The investment volume for this project amounts to approx. EUR 10.5 million. Completion is scheduled for the spring of 2021.
The building permit application will be submitted in June 2019 for the second micro-apartment block planned at No. 1 Halberstädter Strasse in Magdeburg. Here, in mid-October 2018, The Grounds signed the purchase contract for the plot comprising around 2,700 m² on which it intends to build 174 residential units, preferably for use by students, with a planned rentable area of around 5,075 m². Marketing of the residential units is expected to start in the first quarter of 2020. The investment volume for this project amounts to approx. EUR 16 million. Completion is scheduled for late summer 2021.
Around 17,900 students make up 7.5% of Magdeburg’s growing population. While many rural regions in Eastern Germany are to some extent losing considerable numbers of inhabitants, a population growth of nearly 5% is forecast for Magdeburg in the period up to 2035. Throughout Germany, Magdeburg still ranks among the more inexpensive places in which to study – average rents are EUR 220 for apartments up to 40 m². Compared to this, considerably more expensive average rents of EUR 790 and EUR 530 are called for in Munich and Frankfurt respectively, and smaller Bavarian university locations ask EUR 330 to 400. The considerable price development potential for micro-apartments that exists in Magdeburg is clear from this. The Grounds consciously decided in favour of Magdeburg as an aspiring location, and with its extensive project volume it is among the region’s bigger investors.
The Grounds Real Estate Development AG
Management Board Chairman
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.