The Grounds Real Estate Development AG (ISIN: DE000A2GSVV5) has successfully concluded a capital increase against cash contributions, issuing 40,551,982 new shares at a subscription price of €1.00 per share. A majority of the shares—40,000,000—were subscribed by a fund managed by H.I.G. Capital, marking a significant partnership between the two entities. The proceeds from the capital increase will be allocated to strengthen The Grounds’ financial structure, advance ongoing real estate projects, and acquire new development opportunities. The entry of the cash capital increase into the Commercial Register and the delivery of the new shares are expected by the end of January 2025. Jacopo Mingazzini, a member of The Grounds’ Management Board, expressed optimism about the development: “We are pleased to have secured H.I.G. Capital as a strong and reliable partner during challenging market conditions. This capital increase positions us to capitalize on opportunities in the current market landscape and sets a solid foundation for growth after two difficult years.” The new partnership is expected to boost The Grounds’ strategic goals, providing financial stability and resources to expand its real estate portfolio. Ahead of the capital increase, a 2:1 capital reduction was recorded in the Commercial Register on December 10, 2024. This reduced the company’s share capital to €8,902,758, divided into an equivalent number of registered ordinary shares. The share capital will now increase to €49,454,740, divided into 49,454,740 shares following the capital increase. The adjusted shares (ISIN: DE000A40KXL9) will commence trading on December 31, 2024, following stock market holiday adjustments. Any fractional shares arising from the reduction will be credited to shareholders as partial rights under ISIN DE000A40KXM7. H.I.G. Capital’s significant subscription in the capital increase positions it as a majority shareholder, with a stake of approximately 81.3% in The Grounds through its managed fund. This substantial change in shareholder structure highlights the importance of this transaction for the future of The Grounds. With a revamped financial base and new strategic partnerships, The Grounds is set to drive forward its real estate initiatives. The successful capital increase also underscores the company’s resilience and ability to attract high-caliber investors in a challenging market environment.