In February of this year, under leadership of the real estate tycoon, Yakir Gabay, one of Europe’s biggest real estate conglomerates AroundTown SA surpassed the market cap of €13 billion euros and is currently recognized as the largest publicly traded commercial real estate company in Germany. With over €28 billion euros in assets and growing, the company is now on its way to even greater growth as it’s expected to soon be named the 3 largest real estate corporation within the entire Europe.
AroundTown SA is one of the most successful real estate corporations in the world, holding the value of over €6 billion in hotels. The conglomerate owns 160 hotels and has recently acquired a 5-star, 109-room Swiss Hotel by the name of Seehof Hotel, located in Davos. Among these assets are Hilton Berlin, Bristol Kempinski Berlin, Intercontin Frankfurt, London Hilton, and Marriot Rive-Gauche Paris.
In September of 2019, around the same time TLG Immobilien AG acquired €1.5 billion of AroundTown shares from Mr. Gabay. During this time frame, TLG and AroundTown started discussions of a prospective merging combined interests valued at of over €13 billion. The merger agreement reached by the two property acquisition giants is projected to produce around €1 billion in annual revenue. The goal of this merger between TLG and AroundTown is to exceed €100 million in synergies and to join the ranks of DAX corporations. AroundTown is using the merger as bilateral leverage to position itself into receiving an A rating from S&P.
In analyses run by 14 research companies, AroundTown SA shares (ETR:AT1), at present, growing from €8.8 per share) were granted a “Buy” rating. The researching agencies which conducted the study cover AroundTown’s corporate activities, including consideration of an average annual price target amid brokers to be above €9.
One of TLG’s largest shareholders, Amir Dayan, was quite confident in the merger, even as a brand-new concept. Amir exercised his confidence in the new development by signing a contract to sell his TLG shares to AroundTown with an expected exchange of newly issued AroundTown stock.
From this binding exchange, AroundTown was accepted to exchange upwards of 77% of TLG shares via the issuing of a tender-offer. This deal has been settled on February 19, 2020, and there is no high certainty that the companies will reach their goals of being included in DAX and earning reputation-defining, positive ratings by S&P.
Back in 2012, Yakir Gabay led the growth of yet another renowned real estate corporation, Grand City Properties SA. In its early years, Grand City Properties SA was traded at €2.7 per share at €150 million value – yet under the leadership and expertise of Mr. Gabay, the corporation has continued to see its stock rise significantly – presently, it is at over 800% increase from its beginnings at €24.
Grand City Properties is presently known as the 4th largest Germany-based residential real estate company with €4 billion market cap. Investors expect that Grand City Properties will benefit from the Brexit-related developments in the industry based on its recent accumulation of more than 2500 apartments in London. These new properties join Grand City Property’s current collection of 80,000 apartments in Germany.