EQS-News

The Grounds cancels purchase contract and receives compensation payment

EQS-News: The Grounds Real Estate Development AG / Key word(s): Real Estate The Grounds cancels purchase contract and receives compensation payment 28.12.2023 / 18:33 CET/CEST The issuer is solely responsible for the content of this announcement. The Grounds cancels purchase contract and receives compensation payment

• Contract for sale of Terra Homes project development in Erkner cancelled
• The contract was cancelled by mutual agreement at the buyer’s request
• Project implementation continues unchanged and on schedule by The Grounds
• Successful project development activities for the year as a whole
• Updated guidance for 2023 will be announced in January 2024

Berlin, 28 December 2023 – Today, The Grounds Real Estate Development AG (The Grounds / ISIN: DE000A2GSVV5) cancelled the contract for the sale of the Terra Homes project in Erkner that was concluded on 18 March 2022. The project, with a sales volume of EUR 18.5 million, comprises the construction of 17 semi-detached houses, equivalent to 34 halves of semi-detached houses, in Erkner-Hohenbinde in the neighbourhood of the Tesla factory in Grünheide.

The contract was cancelled by mutual agreement at the buyer’s request. An integral part of the agreement is a compensation payment of the amount of EUR 5.55 million to The Grounds. Due to the cancellation of sales proceeds, the sales volume of The Grounds in the current financial year will be reduced compared to previous planning to the extent that the construction progress achieved would have been recognised in the balance sheet as at 31 December 2023 according to the percentage of completion method. An amount of around EUR 9.2 million was recognised for this in the balance sheet for the first half of the year as at 30 June 2023. However, the compensation payment will increase earnings. As previously announced, updated guidance for 2023 will be announced in January 2024.