Aroundtown shares gain after unit buys stake in LEG Immobilien

Aroundtown SA shares climbed 3.5% after the company announced its subsidiary Grand City Properties S.A. acquired a 20.04% stake in LEG Immobilien SE, a major German residential real estate company.

The purchase changes Aroundtown’s portfolio mix, with residential holdings now accounting for 42% of total assets, becoming the largest segment.

When combined with hotels, the living segment makes up nearly 60% of the group’s portfolio, an increase from the previous 53%. LEG Immobilien reported the book value of equity for the acquired shares at about €1.8 billion as of June 2026.

Aroundtown said LEG Immobilien’s shares trade at an FFO I yield exceeding 13%, which is expected to produce an FFO I accretion of approximately 15% on a pro-rata basis for the company.

The firm may raise its stake to as much as 29.9% of LEG Immobilien’s shares or lower its shareholding based on market conditions.

"We see the investment in LEG Immobilien as transformative, as it complements our recent actions taken to increase the living segment of our portfolio," said Kamaldeep Manaktala, Deputy CEO.

LEG Immobilien’s properties are located primarily in North Rhine-Westphalia, Germany’s most populated state. Aroundtown said the investment stays within its financial credit rating metrics. Citigroup Global Markets Europe AG served as financial advisor on the deal.

The company said it will continue to assess capital allocation opportunities including liability management, capital recycling and property acquisitions.