Velero buys residential portfolio in Brandenburg for Asterion.

Residential portfolio in Wittstock, Brandenburg

Velero acquired a residential portfolio in Wittstock, Brandenburg for Luxembourg-based Asterion as part of an exclusive mandate at the beginning of the year. The properties, which were built in 1996, comprise 122 residential and 9 commercial units.

With a current vacancy rate of 16%, the portfolio generates an annual net cold rent of around €400,000. Velero plans to significantly reduce the vacancy rate by converting the commercial units into senior-friendly housing. After the economic transfer of the properties, which will take place at the beginning of the 2nd quarter of 2017 at the latest, the conversion is to begin immediately.

This acquisition increases the Asterion Group’s portfolio to around 3,960 residential units. Velero is already conducting further reviews in order to further increase the portfolio for the Asterion Group.

“This smaller transaction is a sensible addition to Asterion’s portfolio and offers further opportunities to increase returns through the planned conversion. However, the focus for acquisitions this year will again be on portfolios comprising at least 200 units,” says Thomas Lange, one of Velero’s managing directors.

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.