Yakir Gabay Mergers €28 Billion in Real Estate Assets

Yakir Gabay Mergers €28 Billion in Real Estate Assets
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Real estate tycoon Yakir Gabay founded the real estate conglomerate AroundtownSA back in 2004. Nearly 11 years later, in 2015, the company shares were listed for €3on the Frankfurt stock exchange and also on Euronext in Paris with a combined market cap of €1.6 billion euros.

In nearly 5 years of public market trading, the property conglomerates public stock has consistently appreciated in value and currently trades at €8.7 per share as Aroundtownhas become the largest public-traded commercial real estate company across Germany, while also becoming one of the leading forces in Europe as a whole.

In September 2019, Yakir Gabay sold 15% of Aroundtown AG stock for a total of €1.5 billion to TLG Immobilien, a competitor in the residential, hotel and office real estate market.

The $1.5 billion stock sale of Yakir Gabay to TLG immediately ignited discussions between the latter and Aroundtownregarding a possible merger of interests worth €13 billion, yielding an expected €1 billion in annual revenue.

The goal of the merger between the two European real estate giants is said to achieve the DAX company listing status (listing the top 30 blue-chip companies in Germany), along with an S&P A rating.  According to insiders, the merger of interests would create over €100m in combined synergies.

The main shareholders in Aroundtown are  Avisco (10%),, Blackrock (5%), and other various investments from Fidelity, Norges Bank, Allianz, Vanguard, and more. Aviscois controlled by Gabay, while Amir Dayan was a 28% major shareholder in TLG.

As the largest TLG shareholder, Dayan threw his backing behind such a potential merger during the early stages by signing an irrevocable contract that would see his 28% stock shares in TLG swapped for the newly-issued Aroundtown stocks.

Following the contractual agreement with Mr. Dayan, Aroundtown received a combined 78% acceptance rate from TLG Immobilien investors to swap their existing stocks for the newly-issued Aroundtown stocks..

The majority of shareholders in Aroundtown also put their confidence and support behind the potential merger, which is estimated to create a market leader in the real-estate sector. Such a merger would combine assets to amount to €28 billion, including residential, office, and hotel assets. The majority of these would be located within Germany.

Statistics from Marketbeat Ratings and Slater Sentinel revealed that Aroundtown shares were given a ‘buy’ rating from an impressive 14 different research companies.

However, Yakir Gabay is not limited to Aroundtown as his sole venture, as he also founded Grand City Properties, taking them public back in 2012. In mid-2012, stocks for GCP were being traded at €2.7 per share, increasing at a consistent rate above  800% of this value today, sat at around €24. This meteoric rise saw it become the fourth largest residential real estate company in all of Germany.

It is expected that the UK property market will appreciate after Brexit, meaning that Grand City Properties’ 2,500 apartments in London should do nicely, as well as the 80,000 located across Germany.