KKR: and Velero expand their residential real estate portfolio with the acquisition of approximately 14,400 units from Adler Groupread more

• KKR acquires c. 14,400 residential and commercial real estate units as part of an Adler Group asset sale
• The portfolio will be managed by KKR’s holding company, Velero, and is complementary to Velero’s existing footprint with units located in eastern Germany, the greater Berlin area and North Rhine-Westphalia
• All existing rental contracts and leases as well as c. 170 employees connected to the portfolio will be supported

Frankfurt, Berlin, January 13, 2022 – KKR, a leading global investment firm, today announced that KKR has signed definitive agreements to acquire a portfolio of approx. 14,400 residential and commercial real estate units of the Adler Group. The vast majority of units are residential. The properties will be managed by KKR’s holding company, Velero, a fully integrated platform for residential property and asset management. Most of the acquired units are located in strong and stable markets in which Velero is already active, including the cities of Cottbus, Leipzig, Halle, Erfurt, Jena, Dresden and Chemnitz, as well as other cities in eastern Europe. Germany, the Greater Berlin Area and North Rhine-Westphalia.

As a result of the transaction, the managed portfolio grew to more than 23,000 residential real estate units, making it one of the largest private real estate companies in the German residential real estate market (by number of residential real estate units managed).

Jan Baumgart, Managing Director and Head of Real Estate Germany at KKR, commented: “The acquisition of this portfolio demonstrates our ability to seize very attractive opportunities in the German residential real estate market. We look forward to working with Velero to improve quality of life, improve energy efficiency, reduce vacancy and drive operational improvements. We will invest significantly in properties to achieve these goals.

Sascha Giest and Thomas Lange, co-CEOs and founders of Velero, added: “We are very proud to have, together with KKR, found such an attractive and rare portfolio through our long-standing network within the German real estate community. This transaction marks a significant milestone in the growth journey of Velero. The acquired units are a valuable addition to our existing portfolio of managed properties and our location strategy. The acquisition of the portfolio will enable us to take advantage of economies of scale in property management – ​​while ensuring a smooth transition and high quality services to our tenants.

Additionally, Velero will support all c. 170 Adler employees performing operational and other asset-related tasks in relation to the acquired portfolio. This will ensure that on-site support for tenants will continue to be provided by staff who are already familiar with the properties and the tenants.

Lease agreements for all tenants in the portfolio will remain unchanged by the transaction in order to continue to provide high quality housing at affordable rates.

KKR makes its investments from Real Estate Partners Europe II (REPE II) and other managed funds. The transaction is structured as an asset transaction and subject to customary closing conditions for an asset transaction and clearance from the German Federal Cartel Office.

About KKR
KKR is a leading global investment firm providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive returns on investment by following a patient and disciplined investment approach, employing world-class people and supporting the growth of its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer pension, life insurance and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Velero
Founded in 2015, Velero is a Berlin-based asset management company specializing in the acquisition and management of German residential real estate, with a focus on affordable housing. With the acquisition of a majority stake by global private equity leader KKR in 2020, the company has grown into a fully integrated residential real estate platform. Together with its partners, Velero invests in residential portfolios in emerging cities and regions across Germany. In addition to transactions and financing, the range of services includes the entire value chain of asset management, property management and facility management. The portfolio managed by Velero consists of more than 23,000 residential units with a current focus on the eastern states of Germany and North Rhine-Westphalia.

Media Contacts

KKR Germany

Finsbury Glover Hering
Thea Bichmann
Mobile: +49 172 13 99 761
Email: [email protected]

Finn Bode
Mobile: +49 151 16 30 36 59
Email: [email protected]

Velero

Jürgen Herres
Feldhoff & Cie.
Mobile: +49 176 60 73 86 82
Email: [email protected]

Anke Sostmann
Feldhoff & Cie.
Mobile: +49 159 04 02 85 05
Email: [email protected]

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