Aroundtown, Germany’s second‑largest property owner, has taken a controversial position as a new large shareholder in LEG Immobilien AG, the country’s second‑largest residential landlord. The move was received positively on the stock market, but analysts reacted with surprise and raised a number of questions about the strategic implications.
Rising interest rates are being strongly felt, and the chief executive of Germany’s second‑largest real‑estate company warned that this upward trend will negatively impact the business, especially in a particular area of its operations.
In an interview, LEG Immobilien CEO Lars von Lackum discussed the challenges facing the German rental market, emphasizing that a rental apartment is more than just a financial asset and highlighting the impact of decaying housing stock in former East Germany.
LEG Immobilien AG reported a modest upward revaluation of its residential property assets in the first half of the year and confirmed its annual earnings forecast. The firm is also disposing of apartments to lower its leverage as it expects interest rates to rise.