Grand City Properties, a subsidiary of Aroundtown, said on 20 October 2026 that it had acquired a 20.04% stake in LEG Immobilien, one of Germany's largest listed residential landlords. It did not disclose the price.
Why Grand City Properties S.A. (Aroundtown group) is buying LEG Immobilien SE – 20.04% stake
GCP said LEG's portfolio of about 171,000 homes, concentrated in North Rhine-Westphalia, overlapped with its core markets. It said the stake, trading at an FFO I yield of over 13%, offered better economics than comparable direct property purchases and should lift its own FFO I by about 30% on a pro rata basis.
Deal terms and financing
GCP signed agreements with financial intermediaries for LEG shares that, together with its existing holdings, give it 20.04%. It may raise the stake to up to 29.9%, reduce it or sell it, depending on market conditions. The book value of LEG equity attributable to the shares is about €1.8bn, and GCP said it may record a substantial one-off, non-cash gain because the stake trades at a discount.
Regulatory approvals and timing
GCP will not exercise the voting rights attached to the shares until it receives control clearance from Germany's Federal Cartel Office (Bundeskartellamt).
Market context
LEG said it had taken note of the announcements and of GCP's description of the holding as a financial investment, and that its shareholders did not need to take any action. LEG shares rose by more than 3% on the Tradegate platform after the announcement, according to dpa-AFX.
