German property group Deutsche Wohnen launched a 1.75 billion euro ($2.34 billion) all-share bid for rival GSW Immobilien , creating a company focused on the thriving real estate market of Berlin.

Deutsche Wohnen said on Tuesday it would offer 51 of its shares for every 20 shares in GSW, which will give GSW investors 43 percent of the enlarged company.

The offer represents a premium of 15.4 percent over the volume-weighted average share price of GSW over the past three months.

(Reporting by Christiaan Hetzner)