Grand City Properties Acquires Stake in LEG Immobilien SE

Grand City Properties S.A. has announced the acquisition of a 20.04% stake in LEG Immobilien SE. This Luxembourg-based real estate company sees the transaction as a strategic financial investment, capitalizing on favorable market conditions. LEG Immobilien, a major player in Germany's residential real estate sector, possesses a robust portfolio mainly in North Rhine-Westphalia.

The acquisition, supported by Grand City's strong balance sheet, is expected to enhance fund flows from operations (FFO) by about 30% on a pro-rata basis. This financial move, yielding over 13% FFO I, outshines comparable asset acquisitions. The company retains the flexibility to adjust its stake or divest based on market dynamics.

This investment aligns with Grand City's financial policy, maintaining a loan-to-value ratio below the 45% threshold. According to LEG Immobilien’s June 2026 report, the equity linked to the acquired shares is valued at approximately €1.8 billion, offering a substantial discount opportunity. The transaction awaits approval from Germany’s Federal Cartel Office.