EQS-News: Aroundtown significantly increases its share in German Residential Real Estate through GCP’s financial investment in LEG Immobilien SE

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

AROUNDTOWN SIGNIFICANTLY INCREASES ITS SHARE IN GERMAN RESIDENTIAL REAL ESTATE THROUGH GCP’S FINANCIAL INVESTMENT IN LEG IMMOBILIEN SE

20 October 2026.

Aroundtown SA (“Aroundtown” or the “Group”) has indirectly significantly increased its investment in German residential real estate through its subsidiary Grand City Properties S.A. (“GCP”). GCP announced today a 20.04% shareholding in LEG Immobilien SE (“LEG Immobilien”).

Aroundtown supports GCP’s financial investment. LEG Immobilien’s shares trade at an FFO I yield of over 13%, while the investment results in an expected high FFO I accretion for Aroundtown of around 15% on a pro-rata basis, significantly more attractive than current comparable direct asset acquisitions. The Group may, at its discretion, opportunistically increase its stake up to 29.9% of LEG Immobilien’s shares, use its right to reduce its shareholding significantly in a very short term or sell all or part of its investment, at any time, depending on market conditions. Aroundtown’s residential portfolio, including its proportional share in LEG Immobilien’s portfolio, increases in size and becomes the largest asset segment, representing 42% of the Group’s total portfolio. Including the hotel portfolio, the living segment increases close to 60% from previously 53%, further increasing the contribution of strong and recurring cash flows with attractive long-term fundamentals to the Group.

LEG Immobilien is one of Germany’s largest residential real estate companies and owns a large, well-established residential portfolio concentrated in attractive German markets, with a focus on North Rhine-Westphalia, Germany’s most populous state. LEG Immobilien’s portfolio is characterized by low vacancy and resilient rental income, supported by structurally favorable supply-demand fundamentals and robust, recurring cash flows with strong long-term prospects.

The investment supports Aroundtown’s portfolio due to its increased scale, asset quality, market share and strong and stable cash flow profile while remaining within its financial credit rating metrics. The book value of the equity attributed to the shares acquired by the Group amounts to ca. €1.8bn as reported by LEG Immobilien as of June 2026. This position is trading currently at a substantial discount. Consequently, in accordance with IFRS, under certain conditions, the Group may record a substantial one-off, non-cash profit.

The Group will continue to evaluate capital allocation opportunities, including liability management, capital recycling, property acquisitions, and other uses of capital, and deploy funds where it sees compelling per-share value creation and strengthening its financial profile.

Kamaldeep Manaktala, Deputy CEO: “We see the investment in LEG Immobilien as transformative, as it complements our recent actions taken to increase the living segment of our portfolio, where we increased our stake in GCP, converting office space into serviced apartments, and investing into our hotel portfolio.”

Citigroup Global Markets Europe AG have been acting as financial advisor.

About the Company

Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is the largest listed German commercial real estate company. Aroundtown invests in income generating quality properties with value-add potential in central locations in top tier European cities primarily in Germany, the Netherlands, and London.

Aroundtown SA (ISIN: LU1673108939) is a public limited liability company (société anonyme) established under the laws of the Grand Duchy of Luxembourg, registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, Luxembourg) under number B217868, having its registered office at 37, Boulevard Joseph II, L-1840 Luxembourg, Grand Duchy of Luxembourg.

Contact
Timothy Wright
T: +352 288 313
E: info@aroundtown.de
www.aroundtown.de

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THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

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IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (EEA) AND THE UNITED KINGDOM, THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE “QUALIFIED INVESTORS” WITHIN THE MEANING OF REGULATION (EU) 2017/1129, AS AMENDED (THE PROSPECTUS REGULATION) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA OR THE UNITED KINGDOM WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN INVESTOR) OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OR THE UNITED KINGDOM OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA OR THE UNITED KINGDOM TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY AROUNDTOWN OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS REGULATION.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF AROUNDTOWN SA. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.