Velero buys residential portfolio in Saxony for Asterion
June 13, 2017
Velero has acquired a small residential portfolio in Bischofswerda, Saxony, for Luxembourg-based Asterion under 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 approx. 416,000 €. Velero plans to significantly reduce the vacancy rate by converting the commercial units. The economic transfer of the properties is to take place at the beginning of the 3rd quarter of 2017 at the latest.
This purchase will increase the portfolio of the Asterion Group to over 4,000 residential units. "This smaller transaction is a good addition to the portfolio acquired last year in nearby Kamenz and offers an attractive initial yield already with the takeover. In addition to portfolios of at least 200 units, we are currently also considering 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 holdings", says 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.