DGAP-Adhoc
Aroundtown SA announces accounting consolidation of GCP
DGAP-Ad-hoc: Aroundtown SA / Key word(s): Statement/Real Estate Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014 |
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS
AROUNDTOWN ANNOUNCES ACCOUNTING CONSOLIDATION OF GCP
Grand Duchy of Luxembourg, 23 July 2021.
Following IFRS guidelines, Aroundtown ('the Company' or 'AT') announces that it has resolved upon the accounting consolidation of Grand City Properties S.A. ('GCP') in its financial statements starting from Q3 2021. The resolution follows a thorough analysis of several cumulative circumstances which, together, from an accounting perspective, resulted in treating AT's investment in GCP as a position of de facto control, as defined under IFRS. These circumstances included, among others, the increase in the holding in GCP to 44.3%, excluding shares GCP holds in treasury, the historical attendance levels in GCP's AGMs, and the current composition of GCP's shareholding structure. The consolidation is an accounting adjustment and does not represent any change in AT's holding rate of GCP. As AT's FFO already includes the relative share in GCP's FFO, there is no material change expected as a result from the consolidation to AT's 2021 FFO guidance. As of today, AT does not intend to make any changes to GCP's management or business, and AT and GCP management teams will continue to explore all avenues for potential common future synergy generation.