The Grounds Real Estate Development AG

Earnings Release • Dec 10, 2020

News Details

Corporate | 10 December 2020 13:18

The Grounds Real Estate Development AG:

DGAP-News: The Grounds Real Estate Development AG / Key word(s): Real Estate/Change in Forecast

10.12.2020 / 13:18

The issuer is solely responsible for the content of this announcement.

CORPORATE NEWS

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.”

Company contact:

The Grounds Real Estate Development AG

Arndt Krienen/Jacopo Mingazzini, Management Board members

Charlottenstraße 79-80, 10117 Berlin, Germany

Tel.: +49 (0) 30 2021 6866

Fax: +49 (0) 30 2021 6849

E-mail: info@thegroundsag.com

Web: www.thegroundsag.com

Investor relations:

UBJ GmbH

Ingo Janssen, Managing Director

Haus der Wirtschaft, Kapstadtring 10

22297 Hamburg, Germany

Tel.: +49 (0) 40 6378 5410

E-mail: ir@ubj.de

Web: www.ubj.de

Press contact:

RUECKERCONSULT GmbH

Peter Dietze-Felberg

Wallstrasse 16

10179 Berlin, Germany

Tel.: +49 (0) 30 284 49 87 62

E-mail: dietze@rueckerconsult.de

Web: www.rueckerconsult.de

About The Grounds

The Grounds-Gruppe carries out residential projects in German metropolitan regions. In addition, The Grounds Group holds a steadily growing housing portfolio in its fixed assets. The Grounds Real Estate Development AG is listed in the upper open market segment of the primary market of Düsseldorf stock exchange (ISIN: DE000A2GSVV5), and has its headquarters in Berlin and an office in Stuttgart.

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10.12.2020 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

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Language:	English
Company:	The Grounds Real Estate Development AG
	Charlottenstraße 79-80
	10117 Berlin
	Germany
Phone:	030 2021 6866
Fax:	030 2021 6489
E-mail:	info@thegroundsag.com
Internet:	www.thegroundsag.com
ISIN:	DE000A2GSVV5
WKN:	A2GSVV
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf (Primärmarkt), Frankfurt, Munich
EQS News ID:	1154332

End of News	DGAP News Service