Aroundtown stock shifts further toward housing after LEG stake

Aroundtown is sharpening its residential-property strategy after subsidiary Grand City Properties disclosed a 20.04% stake in LEG Immobilien on October 20, 2026. The transaction gives the Luxembourg-based real estate group a larger position in German housing while preserving room to adjust the investment as market conditions change.

The announcement, published by boerse.de from an EQS release, said Aroundtown supports GCP's financial investment. LEG shares were described as trading at an FFO I yield of more than 13%, while the investment was expected to generate FFO I accretion of around 15% for Aroundtown on a pro-rata basis.

Residential assets take the lead

Including Aroundtown's proportional share of LEG's portfolio, residential property becomes the group's largest asset segment and represents 42% of the total portfolio. The broader living segment, including hotels, rises to close to 60% from 53%, according to the company. Management said the shift should increase the contribution of recurring cash flows with attractive long-term fundamentals.

LEG owns a large residential portfolio concentrated in German markets, particularly North Rhine-Westphalia. Aroundtown's announcement highlighted low vacancy, resilient rental income and structural supply-and-demand support as characteristics of the investment. These factors may strengthen the group's recurring-income profile, although the expected benefits remain dependent on property markets, financing conditions and the future performance of the investment.

Flexible capital allocation remains

Aroundtown retains discretion to increase GCP's stake in LEG to as much as 29.9%, reduce it significantly at short notice or sell part or all of the position. The group said it would continue to assess liability management, capital recycling, acquisitions and other uses of capital with a focus on per-share value creation and its financial profile.

The company also said the book value of the equity attributable to the acquired shares was about 1.8 billion euros based on LEG's June 2026 reporting. Because the position was trading at a substantial discount, Aroundtown noted that IFRS conditions could lead to a substantial one-off, non-cash profit. That outcome is conditional and should not be treated as recurring operating income.

Deputy CEO Kamaldeep Manaktala called the investment transformative and linked it to earlier steps to expand the living segment, including a higher stake in GCP, office-to-serviced-apartment conversions and hotel investments.

Stock awaits the next report

Aroundtown stock traded at 1.65 euros on Lang & Schwarz at 10:33 CET on Thursday, November 5, 2026, 3.13 percent above the Xetra close of Wednesday, November 4, 2026 at 1.60 euros. Investors' next scheduled company event is the third-quarter 2026 financial report on November 25, as listed in Aroundtown's investor-relations calendar.

For the real-time quote of Aroundtown stock, the focus remains on how the housing strategy develops alongside financing and property-market conditions.

German equities provided the broader market setting, with investors also watching the DAX.

More news and analyses on Aroundtown stock provide further coverage of the company and its property portfolio.