Gröner Group participates in a real estate platform on the Frankfurt Stock Exchange

Following the acquisition of the majority of shares in L-KONZEPT Holding AG, Leipzig, which are traded on the Open Market of the Frankfurt Stock Exchange (WKN: A0N3EU, ISIN: DE000A0N3EU3, ticker symbol: LKB) by Trimax Germany GmbH at the beginning of the year, a major milestone in the further expansion of the company now follows - a capital increase with the transfer of real estate projects worth EUR 50 million by the Gröner Group.

The resolution is to be passed by the Annual General Meeting on March 28, 2024. The company’s share capital is to be increased by issuing new shares against contributions in kind, which are to be subscribed by the Gröner Group.

The capital increase will result in a significant strengthening of the company’s equity. It also opens up the opportunity to expand the previously small to medium-sized property development business into a larger-volume business segment with prospective access to the market segment for institutional capital management companies. The company’s future viability will be flanked by the addition of bodies with real estate and capital market experience, access to the new main shareholder’s decades of expertise and its resources in terms of planning, construction and land banking.

The company’s new Management Board member, Jürgen Kutz, summarizes:
“The recalibration of the German real estate market requires the intelligent use of experienced resources and provides a solid basis for successful investments. Joining the company, which will operate under the name CGRE AG in the future, is the initial step towards creating an attractive real estate platform with a comprehensive value chain. The disclosure requirements applicable to these companies make it transparent, easy to understand and well documented. Combined with the significant strengthening of equity through the planned capital increase and access to the resources of the Gröner Group and its sister group ecobuilding AG, this opens up an almost unique investment opportunity on the German real estate market.”

The capital increase will give the company a higher weighting on the stock market and thus improved access to the capital and bond markets as well as other financing instruments. This makes it particularly attractive for private investment approaches.