FRANKFURT, Sept 23 (Reuters) - German residential propertyfirm Vonovia SE said on Monday it is buying a majoritystake in Swedish peer Hembla from a subsidiary of investmentfirm Blackstone Group Inc for 1.14 billion euros ($1.26billion).
Vonovia would acquire a 61.2% stake from Vega Holdco, givingthe real estate company 69.3% voting right, subject toclearances by Swedish antitrust authorities, which are expectedby November.
The acquisition would be done via its subsidiary HomeStartInvestco, Vonovia said.
The move is in line with Vonovia's international expansionstrategy and is the company's second major deal in Sweden afterits acquisition of Victoria Park in 2018.
Hembla has 21,411 residential flats, primarily in Stockholm.
Bochum-based Vonovia owns just under 400,000 residences andmanages 79,000 in Germany, Austria and Sweden, employing about10,000 people.
"We are long-term investors in residential housing and offerattractive and high-quality living," said Chief Executive RolfBuch.
"Our investment in Hembla is fully complementary with ourpresent footprint."
Shares in DAX-listed Vonovia dropped up to 3% in thinpre-market trade.
($1 = 0.9073 euros)(Reporting by Vera Eckert, editing by Riham Alkousaa and RashmiAich)