Velero buys residential portfolio in Magdeburg for Asterion
June 30, 2017
Velero has acquired a further residential portfolio for the Luxembourg-based Asterion under an exclusive mandate. The portfolio consists of 360 residential units in Magdeburg, the capital of Saxony-Anhalt, which were built in 1973/1974 and partially renovated between 1992 and 1994.
The portfolio currently generates an annual net cold rent of approx. 954,000 €. By investing in the portfolio in the form of apartment renovations, a significant reduction in vacancies is planned. Together with the portfolio in Magdeburg and Lostau, which was only acquired in April of this year, Velero was able to expand the stock in Magdeburg with this additional purchase.
The economic transfer of the properties is scheduled to take place in the 3rd quarter of 2017.
In the first half of 2017, the Asterion Group was able to increase its residential portfolio by 25.0% to over 4,700 units through transactions at the locations 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. We will continue to focus on purchasing portfolios of at least 200 units, but smaller volumes to supplement our portfolio will also be considered," said Thomas Lange.
Velero was advised in the contract negotiations by the law firm Greenberg Traurig Germany, LLP, Berlin. The technical due diligence was carried out by BBT GmbH from Berlin.