German real estate group Deutsche Wohnen announced Monday it will buy a real estate portfolio for 1.24 billion euros ($1.55 billion) from Barclays, according to a report.
Deutsche Wohnen said the deal includes 23,500 apartments with a low average vacancy rate of 2.7 percent, according to Reuters.
The German real estate group will use equity and debt to finance the deal, in which it is paying about 13 times annualized net rent to boost its stock of apartments by almost half to 73,500. It said it expects the deal to close in coming months.
Most of the real estate is located in or near cities including Hanover, Berlin and Magdeburg.
Overall, German real estate has seen a firm rise in values in the last couple of years.
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