Aroundtown SA (former Aroundtown Property Holdings Plc) is a publicly listed

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

company, registered in

Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...

. It invests in commercial and residential properties in central locations in European cities primarily in Germany and the Netherlands.

Company

Aroundtown invests in commercial and residential real estate. The commercial properties are held by Aroundtown, and in addition Aroundtown holds a substantial interest (40%) in Grand City Properties S.A. ("GCP"), a publicly traded real estate company that focuses on investing predominantly in the German residential real estate market. The company's total asset value is €32 billion, total equity value is €17 billion and

funds from operations Funds from operations (FFO) is the term that investors use in order to describe the cash flow of a real estate company or a real estate investment trust A real estate investment trust (REIT) is a company that owns, and in most cases operates, inco ...

(FFO1) guidance for 2020 calendar year is above €500 million. The net profit in 2019 was €1.7 billion. The current global rating is BBB+ by S&P. This credit rating is due to the business profile and the conservative financial policy with

loan-to-value The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. In Real estate, the term is commonly used by banks and building societies to represent the ratio of the first m ...

(LTV) of 34%. Over the last 5 years the company has raised over €20 billion in

equity Equity may refer to: Finance, accounting and ownership * Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the dif ...

and

bond Bond or bonds may refer to: Common meanings * Bond (finance), a type of debt security * Bail bond, a commercial third-party guarantor of surety bonds in the United States * Chemical bond, the attraction of atoms, ions or molecules to form chemica ...

s between 2015–2020, working with global banks such as JPM,

BAML BofA Securities, Inc., previously Bank of America Merrill Lynch (BAML), is an American multinational investment banking division under the auspices of Bank of America. It is not to be confused with Merrill, the stock brokerage and trading plat ...

, DB, GS, MS,

Citibank Citibank, N. A. (N. A. stands for " National Association") is the primary U.S. banking subsidiary of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City ...

UBS UBS Group AG is a multinational Investment banking, investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres ...

, SocGen, Nomura, Santander, Barcleys, CS, HSBC, RBC and others. The majority of the portfolio is located in the cities of

Berlin Berlin ( , ) is the capital and largest city of Germany by both area and population. Its 3.7 million inhabitants make it the European Union's most populous city, according to population within city limits. One of Germany's sixteen constitue ...

(25%),

Frankfurt Frankfurt, officially Frankfurt am Main (; Hessian: , "Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on its na ...

Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the States of Germany, German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the List of cities in Germany by popu ...

Cologne Cologne ( ; german: Köln ; ksh, Kölle ) is the largest city of the German western States of Germany, state of North Rhine-Westphalia (NRW) and the List of cities in Germany by population, fourth-most populous city of Germany with 1.1 m ...

Hamburg (male), (female) en, Hamburger(s), Hamburgian(s) , timezone1 = Central (CET) , utc_offset1 = +1 , timezone1_DST = Central (CEST) , utc_offset1_DST = +2 , postal ...

Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the Capital of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

and other major

European European, or Europeans, or Europeneans, may refer to: In general * ''European'', an adjective referring to something of, from, or related to Europe ** Ethnic groups in Europe ** Demographics of Europe ** European cuisine, the cuisines of Europe ...

metropolitans. Approximately half of the portfolio is offices, the remaining is primarily hotels and residential (through 40% holdings in Grand City Properties). Aroundtown owns over 170 hotels, mainly in Germany and other major

metropolitans. The company owns hotels such as Hiltons in Berlin/London/Dublin/Edinburgh, Interconti Frankfurt, Sheraton Rome, Marriot Paris, Crown Plaza Berlin and Mercure Munich.

History

The Group's business activity was founded in 2004 by

Yakir Gabay Yakir Gabay ( he, יקיר גבאי, born 1966) is a Cypriot-Israeli billionaire real estate businessman, based in London. He owns 10% of Frankfurt-listed Luxembourgish real estate company Aroundtown SA. Gabay is the son of Meir Gabay, a form ...

, who is 10% shareholder. The first acquisitions started in the center of Berlin, in neighbourhoods such as

Mitte Mitte () is the first and most central borough of Berlin. The borough consists of six sub-entities: Mitte proper, Gesundbrunnen, Hansaviertel, Moabit, Tiergarten and Wedding. It is one of the two boroughs (the other being Friedrichshain-Kreuzb ...

and

Charlottenburg Charlottenburg () is a Boroughs and localities of Berlin, locality of Berlin within the borough of Charlottenburg-Wilmersdorf. Established as a German town law, town in 1705 and named after Sophia Charlotte of Hanover, Queen consort of Kingdom ...

. The company's stock was listed on the

Euronext Euronext N.V. (short for European New Exchange Technology) is a pan-European bourse that offers various trading and post-trade services. Traded assets include regulated equities, exchange-traded funds (ETF), warrants and certificates, bonds, de ...

Stock Exchange in mid 2015 at a price per share of €3.2 and market cap of €1.5 billion. As of mid 2018, the company is listed on the Frankfurt Prime Standard and is included in the MDAX index. The company trades with at ticker "AT1" and has a full market cap of around €10 billion.

Management

Aroundtown is managed by the management board, and is led by the Co-CEO Barak Barchen, head of capital markets Oschrie Massachi, Chief Development Officer Klaus Krägel and

CFO The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financ ...

Eyal Ben David. The

chairman The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the grou ...

of the

advisory board An advisory board is a body that provides non-binding strategic advice to the management of a corporation, organization, or foundation. The informal nature of an advisory board gives greater flexibility in structure and management compared to th ...

is Gerhard Cromme, who served in past positions as the chairman of

Siemens Siemens AG ( ) is a German multinational conglomerate corporation and the largest industrial manufacturing company in Europe headquartered in Munich with branch offices abroad. The principal divisions of the corporation are ''Industry'', '' ...

and

ThyssenKrupp ThyssenKrupp AG (, ; stylized as thyssenkrupp) is a German industrial engineering and steel production multinational corporation, multinational Conglomerate (company), conglomerate. It is the result of the 1999 merger of Thyssen AG and Krupp and h ...

, as well as member on the boards of

Lufthansa Deutsche Lufthansa AG (), commonly shortened to Lufthansa, is the flag carrier of Germany. When combined with its subsidiaries, it is the second- largest airline in Europe in terms of passengers carried. Lufthansa is one of the five founding m ...

Allianz Allianz ( , ) is a German multinational financial services company headquartered in Munich, Germany. Its core businesses are insurance and asset management. The company is one of the world's largest insurers and financial services groups. The ...

BNP Paribas BNP Paribas is a French international banking group, founded in 2000 from the merger between Banque Nationale de Paris (BNP, "National Bank of Paris") and Paribas, formerly known as the Banque de Paris et des Pays-Bas. The full name of the grou ...

, E.ON,

Volkswagen Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...

and

Axel Springer Axel Cäsar Springer (2 May 1912 – 22 September 1985) was a German publisher and founder of what is now Axel Springer SE, the largest media publishing firm in Europe. By the early 1960s his print titles dominated the West German daily press ma ...

References

{{Reflist Real estate companies of Luxembourg Real estate companies established in 2004 Financial services companies established in 2004 Luxembourgian companies established in 2004 Companies in the MDAX