Billionaire real-estate tycoon Yakir Gabay, founder of AroundTown, began listing shares in 2015 on the European stock exchange Euronext in Paris and the Frankfurt Stock Exchange in Germany, with a market cap of €1.6 billion euros and share price set at €3. Less than 5 years later, Aroundtown (ETR: AT1 is trading at €8.25 per share and rising) as it crosses the 10 billion euros market cap.
The main shareholders of Aroundtown are Avisco 12% (controlled by Yakir Gabay), TLG Immobilien 15% (Amir Dayan 28% shareholder), Blackrock 5%, Norges Bank, Fidelity, Allianz, Vanguard and various other leading global investors.
In September 2019, Mr. Gabay sold TLG Immobilien 15% of stock of Aroundtown S.A. for 1.5 billion euros.
Less than 3 months later, Aroundtown SA published a tender-offer to merge with TLG Immobilien AG by acquiring and exchanging TLG shares with their own. Amir Dayan, a 28% major shareholder of TLG, agreed to support the merger initiative by signing an irrevocable agreement to exchange his stocks with newly issued shares of Aroundtown. Based on the tender offer, Aroundtown has since received consent to acquire 70% of TLG Immobilien public stock from Dayan and the reminding TLG investors in exchange for Aroundtown shares.
The Aroundtown-TLG deal is estimated to create combined market cap of €13 billion, yielding around €1 billion in annual revenue for the company. The merger of the real-estate assets is expected to increase Aroundtown’s asset value to €28 billion.
The merger with TLG improves the company’s potential to receive around €100m in synergies and positions Aroundtown to achieve a DAX index inclusion, and it ultimately aspires to receive an A rating by the S&P.
In the midst of what appears to be one of the largest European real-estate mergers, AroundTown continues to expand its hotels interests with the purchase of the luxurious 5 star 109-room Seehof Hotel in Davos, Switzerland.
With this addition to its’ existing hotel portfolio, Aroundtown owns over 150 hotels (mainly 4 stars) across Europe valued at around €6 billion including Hilton Berlin (600 rooms), Bristol Kempinski Berlin (300 rooms), Interconti Frankfurt (500 rooms), 3 London Hiltons (500 rooms) and Marriott Rive-Gauche Paris (700 rooms).
The Seefhof hotel is world famous for its participation in the hosting the annual World Economic Forum (WEF), accommodating and events which included prestigious guests such as former US president Bill Clinton, Israeli Premier and president Shimon Peres, German Chancellor Angela Merkel, Russian President Vladimir Putin, actors Angelina Jolie and Richard Gere.
As one of the oldest historical hotels in Davos, the Seehof hotel combines traditional architecture with contemporary innovation. The AAA property includes 109 guestrooms and 3 luxurious apartments, 3 Restaurants, 5 meeting and banquet rooms, three of which are decorated entirely in Swiss stone pine.
The property has total of 10,000sqm including 400sqm dedicated to a state-of-the-art wellness area offering guests saunas, fitness rooms, hot tub, relaxation and treatment facilities.
Aroundtown has been an active member of the WEF, represented by Dr. Gerhard Cromme, Chairman of Aroundtown’s Advistory Board and Yakir Gabay, founder and major shareholder.