Aroundtown stock: LEG stake expands residential exposure

Aroundtown is expanding its exposure to German residential property through its subsidiary Grand City Properties (GCP). On Tuesday, October 20, 2026, GCP announced a 20.04% shareholding in LEG Immobilien SE, according to the Financial Times, which carried the EQS company announcement.

Residential assets take the lead

Aroundtown said the investment makes residential property its largest asset segment. Including its proportional share of LEG's portfolio, residential assets account for 42% of the group's total portfolio. The broader living segment, including hotels, rises close to 60% from 53% previously.

The transaction gives Aroundtown indirect exposure to one of Germany's largest residential property companies. LEG focuses on rental housing, particularly in North Rhine-Westphalia. Aroundtown said LEG's portfolio combines low vacancy with resilient rental income and recurring cash flows.

Flexible capital allocation remains

GCP may increase its LEG holding to as much as 29.9%, reduce it significantly or sell all or part of the position, depending on market conditions. Aroundtown described the investment as more attractive than comparable direct property acquisitions, citing an FFO I yield of more than 13% at LEG and expected pro-rata FFO accretion of about 15%.

The book value of the equity attributed to the acquired shares was about EUR 1.8 billion based on LEG's June 2026 figures. Aroundtown also said the position could lead to a substantial one-off, non-cash profit under certain IFRS conditions. That outcome depends on the applicable accounting conditions and should not be treated as recurring operating earnings.

Share price remains below prior close

The Realtime-Kurs der Aroundtown-Aktie lag am Freitag, 30. Oktober, um 09:35 Uhr bei Lang & Schwarz bei 1,46 Euro, 0,68 Prozent unter dem Xetra-Schlusskurs vom Donnerstag, 29. Oktober. Der Realtime-Kurs der Aroundtown-Aktie bleibt damit der kurzfristige Anhaltspunkt für Anleger, während die LEG-Beteiligung vor allem die langfristige Portfolio- und Kapitalallokation betrifft.

Broader market conditions can be followed in the current market reports.

Next on Aroundtown's calendar is the financial report for the third quarter of 2026, scheduled for November 25. Further developments around the LEG holding, any change in GCP's stake and the treatment of the investment under IFRS will be relevant for the group's earnings profile. More news and analyses on Aroundtown stock.