The Grounds Real Estate Development AG acquires portfolio of 250 residential and 15 commercial units for its real estate holdings
- Rental incomes from the holdings double to around EUR 2.0 million p.a.
- Portfolio offers medium- and long-term development potential through opportunities for densification and energy renovation measures
Berlin, 12 May 2020 –The Grounds Real Estate Development AG (ISIN: DE000A2GSVV5) has significantly expanded its property holding by today’s signature of a purchase contract for a real estate portfolio with 250 residential and 15 commercial units. This doubles rental incomes from the existing properties to approximately EUR 2.0 million p.a.
The real estate holding now acquired comprises 21 almost fully rented multiple family homes, to some extent with minor commercial use, in the German Federal States of Saxony-Anhalt and Brandenburg. The rentable area amounts to 16,913 m². Ten (10) of the multiple family homes are located in the Stendal district to the north of Magdeburg. Another eleven (11) properties are situated in the Prignitz district (north-western Brandenburg). Annual net rental incomes up to now have amounted to around EUR 0.9 million. The portfolio offers medium- and long-term development potential through opportunities for densification opportunities and further energy renovation measures, which may lead to rental increases in the long run.
Commenting on the acquisition, board member Arndt Krienen says “This real estate portfolio is another important milestone for us. We are rounding out our holdings, which are to undergo targeted further expansion in the years to come. The positive long-term cash flow trend is quite clearly in the forefront in this respect.”
Vendor and purchaser agreed not to disclose the amount of the purchase price. Transfer of rights and obligations is scheduled for 30 September 2020. This means the newly acquired residential portfolio will already contribute sustainably to increasing the earning power of The Grounds Group in the fourth quarter of 2020.
The Grounds Real Estate Development AG
Arndt Krienen, Thomas Prax, Management Board
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