Aroundtown SA Increases Stake in Grand City Properties

First Berlin Equity Research GmbH has maintained its "Buy" recommendation for Aroundtown SA. The property company plans to increase its stake in Grand City Properties (GCP) from 62.5% to 81.5%. This follows the settlement of 33.4 million GCP shares, about 19% of the total shares, through a voluntary exchange offer.

The target price for Aroundtown shares remains at €4.10, with an upside potential of 55%. The strategy aligns with Aroundtown's broader capital allocation plan. This approach emphasizes internal growth, capital recycling, and shareholder returns, supported by a stock buyback programme that is 72% complete.

The acquisition is expected to enhance the company's ability to grow Funds from Operations (FFO) on an absolute basis. This growth is also anticipated to reflect positively on per-share FFO over time.