LUXEMBOURG (dpa-AFX) - Commercial real estate specialist Aroundtown has significantly increased its stake in its subsidiary Grand City Properties (GCP) through a share swap. The MDax-listed company announced on Tuesday that the transaction is expected to have a positive impact on Funds From Operations (FFO1), a key performance metric for the real estate sector, with an anticipated annualized increase of 35 million euros. Consequently, the group has raised its full-year guidance for operating profit to a range of 275 million to 305 million euros, up from the previously projected 250 million to 280 million euros, and compared to 288 million euros in the prior year.
Aroundtown had offered GCP shareholders an exchange ratio of one share in the residential real estate group for four Aroundtown shares. The offer, which launched in early March, targeted up to just over 47 million GCP shares. Ultimately, approximately 33.4 million GCP shares were tendered for exchange, the company added on Tuesday. As a result, Aroundtown's stake in GCP has risen from 62.5% to 81.5%./mne/err/jha/
