Annaly Capital Management Inc. (NYSE: NLY), the largest real estate investment trust that buys mortgage debt, agreed to purchase Hatteras Financial Corp. (NYSE: HTS) for $1.5 billion as the company expands its property business.

Annaly’s offer values Hatteras Financial at $15.85 a share and it will acquire the Winston-Salem, North Carolina-based REIT using a combination of cash and its own shares, the companies said in a statement on Monday. The offer is a premium of about 24 percent to the 60-day volume-weighted average price of Hatteras’ stock and the deal is expected to close in the third quarter.

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