Property firm Deutsche Wohnen to acquire Isaria

FRANKFURT, March 25 (Reuters) - German property group Deutsche Wohnen has agreed to acquire the bulk of the operations of peer Isaria for 600 million euros ($649 million), it said on Wednesday.

Buyout group Lone Star, which owns Isaria, started preparations for a divestiture of the company last year, hoping to benefit from buoyant real estate valuations.

The transaction on the sale of most of Isaria’s operations, except for a few selected projects, is subject to the customary closing conditions and will be concluded in the course of this year, Deutsche Wohnen said.

Deutsche Wohnen added that it is planning to invest more than 3 billion euros in building new residential, nursing and commercial properties.

$1 = 0.9241 euros Reporting by Arno Schuetze; editing by Thomas Seythal