Grand City Properties

Grand City Properties has acquired 20.04 percent of the shares in LEG Immobilien; Aroundtown supports the transaction, thereby strengthening its commitment to the German residential real estate sector. Aroundtown justifies the move by pointing to a significant discount of the LEG holding to book value, creating attractive acquisition opportunities and, under certain conditions, the possibility of a one‑off IFRS book gain. GCP describes the position as a financial investment and reserves the right to react flexibly; analysts expect the stake does not necessarily have to be permanent. On the stock exchanges, the share prices of Aroundtown, GCP and LEG rose sharply following the announcement. » More on deraktionaer.de

Grand City Properties has taken a stake of just over 20 percent in LEG Immobilien, which can be increased to up to 29.9 percent. The company may reduce or partially/fully divest the stake at short notice, depending on market conditions. The investment will be financed via the "strong balance sheet" and is expected to lead to significant FFO growth; according to CEO Refael Zamir, LEG offers a high-quality portfolio and a stable dividend policy. » More on finanzen.net

Grand City Properties reports net rental growth of around 3% to just over €219m for the first half and adjusted EBITDA of €174m (+3%). However, operating result FFO1 fell by 4% to €91.5m, prompting management to confirm the full-year guidance with an expected net rental increase of about 3.5% and FFO1 of €175–185m. Group profit fell by around 40% to just under €129m in the half-year, mainly due to lower revaluation gains; the portfolio comprised about 61,200 apartments at the end of June, concentrated in Berlin, North Rhine-Westphalia and London. » More on finanzen.net