Press Release

Nuremberg (Germany), January 17, 2019: In the financial year for 2017/21018 (balance sheet date May 31, 2018), the GRR Group achieved its best ever result. The profits realised by the leading company based in Nuremberg specialised in retail real estate with a focus on basic retail in Germany rose by 5.7% from 5.2 to 5.5 million euros. In the same period, sales revenues increased by 13.9% from 20.2 to 23 million euros. The group with 50 employees currently manages 400 properties for its own portfolio and for diverse investors with a total area of approx. 720,000 square metres and a volume of roughly 1.4 billion euros.

Successful business model with focus on basic retail segment

"In Germany, we have very successfully managed to position the company as a specialist for retail real estate. Our business model with its long-term investment strategy oriented to the basic retail segment is worthwhile for investors. In the attractive basic retail segment we have concentrated our activities in the food retail trade", explains Susanne Klaußner, CEO of the GRR Group. "In particular, last year was characterised by acquisition of the largest real estate portfolio of the company to-date and the launch of the third GRR German retail fund. In a highly competitive field, this has enabled us to realise excellent economic results for our investors. We will also continue this good development in the current financial year."

More than double the previous transaction volume

In the financial year 2017/2018, the transaction volume more than doubled from 112 to 265 million euros. The equity in the funds set up by the GRR Group rose by 22% from 331 to 404 million euros. The occupancy rate of the properties in the funds and managed by the company is around 98%. The number of properties managed by the funds rose by almost a quarter from 198 to 246. Further growth is expected in the current financial year.

GRR German Retail Fund No. 3 starts successfully in the investment phase

In 2018, the GRR Group set up the Retail Fund No. 3, a new investment fund for retail real estate. The planned investment volume amounts to around 350 million euros and the planned equity to roughly 210 million euros. In order to set up the fund, GRR took on an extensive portfolio of 42 items of retail real estate in the area of food supermarkets and discounters for a total of roughly 150 million euros. In fact, this is the biggest portfolio which the GRR Group has acquired for one of its real estate funds. In 2017, the first fund of the GRR Group, the GRR German Retail Fund No. 1, successfully acquired its last properties. In the coming weeks Fund No. 2 will also achieve its planned investment volume.

"The retail real estate in the funds set up by the GRR and owned by the group are characterised by high value retention. In the acquisition phase we carry out individual micro and macro location analysis tailored to the retail trade and develop sustainable concepts for the real estate. This includes upgrading through construction and refurbishment measures and possibly involves the execution of extensive renovation and revitalisation measures. This enables us to continually improve the economic result for our investors", emphasises Martin Führlein, CFO of the GRR Group.

Outlook: GRR Group expects further growth in competitive market segment

For the current financial year, the GRR Group expects further profitable growth. "Offers for attractive properties or portfolios in a good location are, however, rare. Our high degree of specialisation, however, has allowed us to become successful in the market", says Susanne Klaußner. "Today retailers require large, high quality, retail markets. As a lessor we manage retail properties to make sure the shopping experience is again in the foreground and through our professional asset management we systematically increase the value of real estate. This is attractive for investors and also for the lessees of the properties. They benefit from the attractiveness of the retail markets managed by us."

Photos of Susanne Klaußner and Martin Führlein can be downloaded at the end of the press release.

Contact (GRR Group):

Susanne Klaußner MRICS
CEO GRR Group
Phone: +49 911 95512640 | email: susanne.klaussner@grr-group.de

Martin Führlein
CFO GRR Group
Phone: +49 911 95512620 | email: martin.fuehrlein@grr-group.de

Contact (PR):
Matthias Struwe
Eye Communications, Full Service Public Relations Agency
Phone: +49 761 1376221 | email: m.struwe@eyecommunications.de

About the GRR Group

GRR Real Estate Management GmbH is a real estate company specialised in retail properties in Germany, with a focus on investment and asset management. The company has its headquarters in Nuremberg and employs 50 people. GRR currently has around 400 properties under management for various investors, comprising approximately 720,000 square metres and valued at around 1.4 billion euros.

Find more information on the GRR Group at www.grr-group.de.