(Bloomberg) -- A Deutsche Bank AG fund and Prelios SpA are in talks to sell almost 18,000 homes in northern Germany to Immofinanz AG’s Buwog unit. The properties are valued at about 942 million euros ($1.3 billion).

The acquisition will increase Buwog’s real estate assets before an initial public offering planned for 2014, Immofinanz said in a statement today. A deal may be reached by the end of the year, the Vienna-based property company said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.