Velero buys residential portfolio in Magdeburg for Asterion.

Magdeburg Lübecker Straße

Velero has acquired a further residential portfolio for Luxembourg-based Asterion as part of an exclusive mandate. This involves 360 residential units in the state capital of Saxony-Anhalt, Magdeburg, which were built in 1973/1974 and partially renovated between 1992 and 1994.

The portfolio currently generates an annual net cold rent of around €954,000. A significant reduction in the vacancy rate is planned through investments in the portfolio in the form of apartment renovations. Together with the portfolio acquired in Magdeburg and Lostau in April of this year, Velero was able to expand its portfolio in Magdeburg with this acquisition.

The commercial transfer of the properties is expected to take place in the third quarter of 2017.

In the first half of 2017, the Asterion Group increased its residential portfolio by 25.0% to over 4,700 units through transactions in Wittstock, Bischofswerda, Neuruppin and now Magdeburg.

“This transaction strengthens our presence in Magdeburg, allowing us to leverage synergies in management and refurbishment. With this acquisition, we have taken another important step towards expanding our portfolio through continuous growth. Our focus for acquisitions continues to be on portfolios with at least 200 units, but smaller volumes to supplement our portfolio are also being considered,” says Thomas Lange.

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