Aroundtown Expands Stake in German Real Estate via GCP's LEG Immobilien Investment

Aroundtown SA has markedly increased its presence in the German residential real estate market. This move is facilitated through Grand City Properties S.A. (GCP), Aroundtown's subsidiary, acquiring a 20.04% stake in LEG Immobilien SE. This acquisition aligns with Aroundtown's strategy to bolster its residential property portfolio.

LEG Immobilien, a major player in Germany’s real estate sector, boasts a well-established portfolio with stable rental income, mainly focused in North Rhine-Westphalia. This strategic investment ensures Aroundtown's residential assets form the largest segment of its total portfolio, now accounting for 42%.

The investment enhances Aroundtown's financial metrics, promising a favorable accretion to its funds from operations (FFO). As a part of its ongoing strategy, Aroundtown may adjust its stake in LEG Immobilien, reflecting a flexible approach based on market conditions and asset performance.