FRANKFURT (Reuters) - A consortium led by German real estate firm Patrizia (>> Patrizia Immobilien AG) won the bidding for GBW in Germany's largest residential property deal and the group's second major purchase from a bailed-out public sector bank within two years.

Patrizia said on Monday the deal values GBW, sold by state-backed lender BayernLB , at 2.45 billion euros $3.26 billion including debt. GBW owns 32,000 flats.

In Germany's largest residential property deal last year, a consortium also led by Patrizia bought real estate assets worth 1.4 billion euros from LBBW .

BayernLB put the unit up for sale to meet European Commission bailout requirements. The lender received a 10 billion euro from the state of Bavaria after risky investments turned sour in the financial crisis in 2008.

Patrizia, which had teamed up with about a dozen co-investors, mostly pension funds and insurers, said that it would contribute capital of about 58 million euros.

Investors are piling into assets with relatively strong and reliable income streams, such as property and infrastructure projects, rather than German sovereign bonds with meagre yields.

Patrizia shares surged 12 percent to 7.99 euros at 1218 GMT, their highest in 5-1/2 years.

"The fee volume will be up substantially in the future, as the assets under management are up from 7.5 to 10 billion euros now," said DZ Bank analyst Ulrich Geis.

Patrizia outbid a consortium led by the Bavarian cities of Munich and Nuremberg and a third consortium for whom Austrian group Conwert (>> conwert Immobilien Invest SE) would have managed the properties.

In the second-largest residential property transaction in Germany last year, Deutsche Wohnen (>> Deutsche Wohnen AG) bought a portfolio valued at about 1.24 billion euros ($1.55 billion) from Barclays (>> Barclays PLC).

(Reporting by Kathrin Jones and Andreas Kroener; Writing by Ludwig Burger; Editing by Louise Ireland)