$AT1 (+4,9 %)
-Subsidiary Grand City joins $LEG (+0,17 %)
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Grand City Properties has acquired a block of shares in the residential real estate group LEG Immobilien from financial investors, thereby becoming the largest single shareholder with a 20.4% stake. Grand City states that it could increase this stake to 29.9% or, if market conditions are right, sell it again. Like those of other housing companies, LEG’s stock has been trading at a low since the recent rise in interest rates. Based on yesterday’s closing price, the newly acquired stake has a market value of just under 700 million euros, while the pro-rata book value of LEG’s real estate portfolio stands at 1.8 billion euros. Grand City apparently sought to take advantage of the price discount. In addition, Grand City owns many apartments in LEG’s home market of North Rhine-Westphalia. Grand City, in turn, is majority-owned by Aroundtown. With this investment in LEG, the residential business—accounting for 42%—will become Aroundtown’s largest division. LEG Immobilien reacted neutrally to the transaction.
Things are slowly getting underway. I’m also starting to get a little excited about residential real estate stocks, but I think holding off for a few more months will lead to lower equity prices. However, some of the NAV discounts are already really tempting, even when you factor in that they’ll likely have to depreciate significantly again. Also $VNA (+0,41 %) , $TEG (+2,95 %) , $GYC (+4,49 %)
Which stock do you find most attractive for getting started? Right now, I’m leaning most toward $TEG (+2,95 %) and $LEG (+0,17 %)
@investron Is this something for your dividend portfolio?
