* Transaction may wrap up by year's end
* BUWOG adding flats before flotation next year
FRANKFURT/VIENNA Nov 7 Austrian property group
Immofinanz's BUWOG unit is in talks to acquire nearly
18,000 housing units in Germany, as the group aims to increase
its portfolio in Europe's largest economy, Immofinanz said on
Immofinanz said talks are being held with Solaia RE S.a.r.l.
Group, a joint venture of Italian real estate management company
Prelios and an investment fund managed by Deutsche
Asset & Wealth Management.
"The outcome of these discussions is expected around the end
of 2013," it said in a statement.
Taking over the so-called Baubecon portfolio would mark an
important step towards BUWOG's plans to list on the Frankfurt
stock exchange next year. It aims to have at least 15,000 to
20,000 units in Germany by then to whet investors' appetites.
Immofinanz has 7,200 units in Germany now and 27,200 in
Baubecon flats are mostly in Berlin, Hanover and Magdeburg.
Deutsche Bank fund unit RREEF and Pirelli Re bought the
portfolio, then including 27,000 units, from U.S. investor
Cerberus in 2007 for around 350 million euros ($473.5
RREEF had 60 percent and its Italian partner the rest.
Immofinanz did not say how it would finance a takeover,
which would still leave it smaller than rivals Deutsche
Annington with 179,000 units, Gagfah with
145,000 and Deutsche Wohnen with 89,500.