First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 4.10 price target.

Abstract
Aroundtown will lift its stake in Grand City Properties from 62.5% to 81.5% upon settlement of the nearly 33.4m GCP shares tendered (~19% of GCP’s total share count) during the voluntary exchange offer. We think the final tally was good considering the maximum 89.5% ceiling. The outcome is strategically sound and fits neatly with the broader capital allocation story outlined in our March note. The landlord is gradually shifting towards a more offensive strategy combining internal growth, capital recycling and shareholder returns with the share buyback programme that is now about 72% complete. In our view, the deal gives management another lever to drive absolute FFO growth, which should also translate into per share expansion over time. Adjustments to our forecasts result in an unchanged €4.1 TP. Our rating remains Buy (upside: 55%).