Grand City Properties acquires 20% stake in LEG Immobilien

Luxembourg-based Grand City Properties announced it has acquired a 20.04% stake in LEG Immobilien SE, a leading German residential real estate company. This investment, made in collaboration with financial intermediaries, brings the total holdings of Grand City Properties in LEG Immobilien to 20.04%. The acquisition is expected to lead to a 30% accretion in Funds From Operations (FFO) on a pro-rata basis.

LEG Immobilien is predominantly focused on residential properties across North Rhine-Westphalia, Germany's most populous state. The book value of the equity attributed to these shares amounts to approximately €1.8 billion, according to LEG Immobilien's records as of June 2026. Grand City Properties has the option to either increase its stake up to 29.9% of LEG Immobilien's shares or reduce or sell all or part of its investment, depending on market conditions.

The company asserts that this investment aligns with its financial policy and credit rating metrics, maintaining a loan-to-value ratio below its 45% guideline. The voting rights associated with these shares will not be utilized until clearance is obtained from the German Federal Cartel Office. Grand City Properties' CEO, Refael Zamir, noted that this investment presents a superior opportunity to enhance economic performance compared to current comparable direct property acquisitions.

Grand City Properties specializes in residential real estate in Germany and London, with its shares listed on the Prime Standard segment of the Frankfurt Stock Exchange. Citigroup Global Markets Europe AG served as the financial advisor for this transaction. This report was generated with AI assistance and reviewed by an editor.