Gagfah SA (GFJ), the biggest residential landlord in Germany, rose to the highest since May 19 after Dresden’s city council approved a settlement for a dispute over the privatization of the WOBA Dresden unit.

Gagfah rose as much as 7.8 percent and was trading 6.6 percent higher at 6.13 euros as of 9:50 a.m. in Frankfurt, valuing the company at 1.36 billion euros ($1.8 billion). The city council approved a total settlement from the Luxembourg- based company of 36 million euros through 2020.

Dresden sued the company for 1.08 billion euros in April 2011, claiming it broke a sales agreement. Gagfah filed a countersuit over the claim in June.

To contact the reporter on this story: Alex Webb in Berlin at awebb25@bloomberg.net.

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net.