DGAP-News: The Grounds Real Estate Development AG issues convertible bond with a volume of up to EUR 12 million - commitments amounting to EUR 5 million have already been received

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The Grounds Real Estate Development AG issues convertible bond with a volume of up to EUR 12 million - commitments amounting to EUR 5 million have already been received

- Issue of a convertible bond with shareholders' subscription rights, with a volume of up to EUR 12 million and with an interest rate of 6% and a three-year term

- The conversion price amounts to EUR 3.20 per share

- Major shareholders have already promised commitment of EUR 5 million

- Use of proceeds: investments in further enlargement of the residential property portfolio

Berlin, 27.01.2021 -The Grounds Real Estate Development AG (The Grounds / ISIN: DE000A2GSVV5) is issuing a convertible bond with shareholders' subscription rights and a volume of up to EUR 12 million divided into bonds, each with a nominal value of EUR 1,000. Major shareholders of The Grounds have already issued commitments amounting to EUR 5 million. Existing shareholders have submitted declarations stating that they do not wish to exercise any subscription rights, so that the subscription offer still relates to a volume of EUR 4,529,000 and will be carried out without a prospectus with a basic information sheet.

The convertible bonds have a term of 3 years, and will bear interest with a coupon of 6.00% per annum. The conversion price amounts to EUR 3.20 per share, and thus the initial conversion premium measured at the closing price on 26 January 2021 is 23%.

The corresponding subscription offer is to be published in the Federal Gazette on 29 January 2021. Immediately following the planned subscription period scope from 1 February 2021 to 15 February 2021, The Grounds will begin private placement among institutional investors. After completion of the private placement, The Grounds will announce the issue volume. The intention is for the convertible bond to be included for trading in the open market segment Quotation Board of Frankfurt Stock Exchange in mid-February 2021. The transaction will be accompanied by Quirin Privatbank AG.

Commenting on the issue of the convertible bond, Management Board member Arndt Krienen says: "The successful placement of the convertible bond enables us to take the next step for growth, and gives the go-ahead for the company to be made better-known in the capital market. As the first step, we plan to acquire additional real estate property projects for the portfolio and privatisation in the area around Berlin."

Company contact:

The Grounds Real Estate Development AG

Arndt Krienen/Jacopo Mingazzini, members of the Management Board

Charlottenstrasse 79-80, 10117 Berlin, Germany

Tel.: +49 (0) 30 2021 6866

Fax: +49 (0) 30 2021 6849

E-mail: [email protected]

Web: www.thegroundsag.com

Investor Relations:

UBJ GmbH

Ingo Janssen, Management Director

Haus der Wirtschaft, Kapstadtring 10

22297 Hamburg, Germany

Tel.: +49 (0) 40 6378 5410

E-mail: [email protected]

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: [email protected]

Web: www.rueckerconsult.de

About The Grounds

The Grounds Group implements residential projects in German metropolitan regions. Furthermore, The Grounds Group holds a steadily growing residential portfolio in its fixed assets. The Grounds Real Estate Development AG is listed in the upper open market segment primary market of Düsseldorf Stock Exchange (ISIN: DE000A2GSVV5), and has its headquarters in Berlin and an office in Stuttgart.