KKR and Velero form platform for residential real estate in Germany
KKR has acquired a majority stake in Velero Immobilien AG. Part of the transaction is the acquisition of a portfolio of around 7,500 residential units, which Velero already managed as an asset manager.
KKR, a leading global investor, acquired shares in the company from the founders of Velero, who remain co-investors in the company. Sascha Giest and Thomas Lange, Co-Founders and Co-CEOs of Velero, said: “We are very proud to enter the next phase of our development with the support of KKR. We know the market and the residential units like no other. With this set-up, we will continue to offer our tenants first-class service and, together with KKR, continue on our growth path.”
Jan Baumgart, Head of Real Estate Germany at KKR: “We are delighted to lay the foundation for a fully integrated and first-class residential company with Velero. We are convinced that Velero will benefit from the momentum in the German real estate sector. We will now work together to grow the platform and further improve the quality of life for tenants and the environmental footprint of the portfolio.”
With the support of KKR, Velero is evolving from an asset manager into an independent, fully integrated real estate platform. As part of the transaction, a real estate portfolio was acquired that Velero already managed for an institutional investor. In addition to expanding the portfolio through acquisitions, Velero and KKR plan to invest further in the quality of the portfolio, outdoor facilities and playgrounds as well as in modernization measures to improve the energy balance. The aim is to reduce vacancy and ensure affordable rents.
“The acquisition is further evidence of the importance of the German market in KKR’s investment strategy and at the same time an important step in expanding our local presence. With Velero, we are creating an exclusive platform for further investments in the German rental housing market,” said Christian Ollig, Partner and Head of Germany at KKR.