Stocks to Watch

Aroundtown thrives under the radar

Bankenskyline Frankfurt am Main
Looking for an office with a view? Source: Boris Roessler/dpa

If you’re an international real estate investor, you’ve probably been looking closely at Germany residential property market over the past few years. The real estate wave set off by the financial crisis has continued rolling into 2017 — and by all indications is not about to break in the coming year. When you think of companies in the sector, you might think of Vonovia, Germany’s largest residential property group and the real estate flagship in the country’s blue-chip DAX index.

But the best surfer this year didn’t come from the residential sector. Instead, that award goes to a little-known Luxembourg-based company called Aroundtown. Rather than homes, it focuses on the offices, hotels and logistics properties that have gotten shorter shrift in Germany. Operating under the radar, Aroundtown has become the largest commercial real estate company in the country, growing its portfolio from just €2.4 billion in 2015 to nearly €9 billion today.

Any investor that picked up a piece of Aroundtown a year ago will have seen their shares jump more than 50 percent, better than any other member of the Stoxx Europe 600 Real Estate index.

Want to keep reading?

Subscribe now or log in to read our coverage of Europe’s leading economy.