Grand City Properties Acquires 20% Stake in LEG Immobilien

Grand City Properties S.A. acquired a 20.04% stake in LEG Immobilien SE, one of the largest residential real estate firms in Germany. The investment, which held a book value of approximately €1.8 billion as of June 2026, was facilitated by agreements with financial intermediaries.

CEO Refael Zamir described the move as "a better opportunity at stronger economics to current comparable direct property acquisitions." The company expects the acquisition to drive FFO I accretion of around 30% on a pro-rata basis while keeping its loan-to-value ratio below the 45% guidance threshold.

Grand City Properties indicated it may either increase its holding to 29.9% or divest the investment based on future market conditions. Voting rights for the shares will remain unexercised pending clearance from the Federal Cartel Office of Germany. Citigroup Global Markets Europe AG served as the financial advisor for the transaction.