Aroundtown Expands German Real Estate Portfolio with LEG Immobilien Investment

Aroundtown SA has significantly boosted its presence in the German residential real estate market. Through its subsidiary, Grand City Properties S.A., the Group announced a 20.04% stake acquisition in LEG Immobilien SE. This move comes as LEG Immobilien shares offer a favorable FFO I yield of over 13%, promising an expected FFO I accretion of around 15% for Aroundtown.

The investment enhances Aroundtown's residential portfolio, making it the largest asset segment at 42% of the total portfolio. The broadening of the living segment, including the hotel portfolio, increases its contribution to nearly 60%. The strategic acquisition supports Aroundtown's robust cash flow profile and aligns with its financial credit ratings.

This development positions Aroundtown for stronger market presence and potential future stake increases or divestitures, dependent on market conditions. Aroundtown aims to continue evaluating opportunities for portfolio and capital enhancement.