Velero and Asterion buy residential portfolio with 600 apartments at the end of the year.

At the end of the year, Velero made another investment as part of its exclusive mandate for the Luxembourg-based Asterion Group. A total of 592 residential units were acquired in one transaction. Individual locations in the portfolios include Magdeburg, Riesa and Lostau. The remaining units are located between Leipzig and Dresden. Most of the properties were built or renovated in the 1990s.

The portfolio currently generates an annual net cold rent of €1.94 million with a vacancy rate of 7.7%. The economic transition is expected to be completed in the first quarter of 2017.

Since March of this year, Velero has acquired properties with a total of 3,840 residential units for the Asterion Group. Growth is set to continue in the coming year. Talks are currently underway for the purchase of further properties. “As before, the focus is on pure residential portfolios, which ideally start at 200 units, but smaller portfolios of 100 units or more can also be interesting if they are located in the vicinity of the portfolios already acquired,” says Thomas Lange.

Velero was advised by the law firm Greenberg Traurig Germany, LLP, Berlin, during the contract negotiations. The technical due diligence was carried out by BBT GmbH from Berlin.