Grand City Properties S.A. acquires 20% stake in LEG Immobilien SE to drive strong FFO growth

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

GRAND CITY PROPERTIES ACQUIRES 20% STAKE IN LEG Immobilien SE TO DRIVE STRONG FFO GROWTH

Luxembourg, October 20, 2026 -  Grand City Properties S.A. (the “Company”) announces today a 20.04% shareholding in LEG Immobilien SE (“ LEG Immobilien ”). The Company entered into agreements with financial intermediaries for the acquisition of LEG Immobilien shares, which, together with the Company’s existing holdings, amount to a Total Fina Elf shareholding of 20.04%.

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 further by structurally favorable supply-demand fundamentals and robust recurring cash flows with strong long-term prospects. GCP has longstanding operating experience and deep local knowledge in many of the German markets in which LEG Immobilien operates, including North Rhine-Westphalia.

Taking advantage of current market opportunities, the Company regards the shareholding as a financial investment, which trades at  FFO I yield of over 13%. This investment is expected to drive a high FFO I accretion for GCP of around 30% on a pro-rata basis, which is significantly more attractive than current comparable direct asset acquisitions. The Company 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.

The Company is utilizing its strong balance sheet to fund this accretive investment which is expected to drive strong FFO growth. The investment is expected to be within the Company’s financial policy and credit rating metrics, with loan-to-value remaining significantly below the 45% guidance set by the Company’s Board. The book value of LEG Immobilien ’s equity attributed to the shares acquired by the Company 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 Company may record a substantial one-off, non-cash profit. The Company retains sufficient liquidity and financial flexibility and reiterates its strong commitment to its prudent financial policy.

The Company will continue to evaluate capital allocation opportunities across 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.

Refael Zamir, CEO: “We are taking advantage of a unique investment opportunity in a company with a high-quality portfolio and a stable dividend policy. This investment represents a better opportunity at stronger economics to current comparable direct property acquisitions.”

Michael Bar Yosef, Chief Capital Markets Officer: “We are convinced of the long-term rental growth prospects of LEG Immobilien ’s portfolio, which is located in our core markets. The stake in LEG Immobilien provides the Company with exposure to a large-scale portfolio of German residential assets well aligned with our investment strategy.”

Pending the relevant control clearance from the German Federal Cartel Office (Bundeskartellamt), the voting rights attached to the shares will not be exercised.

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

About the Company

The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in Germany and London. The Company’s strategy is to improve its properties by repositioning and intensive tenant management, and then create value by subsequently raising occupancy and rental levels. Further information: www.grandcityproperties.com

Grand City Properties S.A. (ISIN: LU0775917882) is a public limited liability company (société anonyme) incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 37, Boulevard Joseph II, L-1840 Luxembourg, Grand Duchy of Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. The shares of the Company are listed on the Prime Standard segment of Frankfurt Stock Exchange.
 

Contact:

Grand City Properties S.A.
37, Boulevard Joseph II,
L-1840 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com

Investor Relations Team :
Grand City Properties S.A.
E: gcp-ir@grandcity.lu

 

DISCLAIMER:

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), THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE “QUALIFIED INVESTORS” WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC, AS AMENDED (THE PROSPECTUS DIRECTIVE) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA 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 OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY THE COMPANY OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

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 THE COMPANY. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.