Velero buys residential portfolio in Saxony for Asterion.

Residential portfolio in Bischofswerda, Saxony

Velero has acquired a small residential portfolio in Bischofswerda, Saxony, for Luxembourg-based Asterion as part of an exclusive mandate. The portfolio consists of four apartment buildings, three of which were built between 1993 and 1997 and one of which was extensively renovated in 1999. The portfolio comprises 73 residential and 13 commercial units.

With a current vacancy rate of 6.9%, the portfolio generates an annual net cold rent of around €416,000. Velero plans to significantly reduce the vacancy rate by converting the commercial units. The commercial transfer of the properties is expected to take place by the beginning of Q3 2017 at the latest.

This acquisition increases the Asterion Group’s portfolio to over 4,000 residential units. “This smaller transaction is a good complement to the portfolio acquired last year in nearby Kamenz and already offers an attractive initial yield upon acquisition. In addition to portfolios comprising at least 200 units, we are currently also examining the acquisition of smaller properties with at least 50 residential units in locations in North Rhine-Westphalia, Saxony and Saxony-Anhalt, where Asterion has already acquired portfolios,” said Thomas Lange, Managing Director of Velero.

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.