Velero buys residential portfolio in Brandenburg for Asterion

January 27, 2017

 

Velero acquired a residential portfolio in Wittstock, Brandenburg, for the Luxembourg-based Asterion under 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 approximately € 400,000. Velero plans to significantly reduce the vacancy rate by converting the commercial units into age-appropriate living. After the economic transfer of the properties, which will take place at the latest at the beginning of the 2nd quarter of 2017, the conversion is to begin immediately.

 

This purchase will increase the Asterion Group's portfolio to approximately 3,960 residential units. Velero is already in further review to further increase the portfolio for the Asterion Group.

 

"This smaller transaction complements Asterion's portfolio in a meaningful way and offers further opportunities to increase returns through the planned restructuring. However, the focus of acquisitions this year will again be on portfolios comprising at least 200 units," says Thomas Lange, one of the managing directors of Velero.

 

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.