(Bloomberg) --

Adler Group SA has reached a deal to sell its real estate assets for more than 1 billion euros ($1.1 billion). 

Adler didn’t name the buyer of the assets, only saying the purchase is being done by “a leading alternative investment firm” in a statement on Tuesday. The assets are mostly located in eastern Germany. 

“The sale may lead to a significant reduction in Adler’s leverage and return capital to its bondholders,” the company said.

Adler said the deal includes 14,368 real estate units and that they’re being valued at a higher price compared to the book value appraised by CBRE in June. The closing of the transaction is expected in the first quarter of 2022. 

Adler’s longer term bonds jumped on the news with its 400 million euro notes due July 2024 rising 0.7 cents on the euro to 91.3, according to Bloomberg’s prices. Shares gained as much as 5.7% on the Frankfurt Stock Exchange. 

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