German prosecutors say they've arrested five people on suspicion of founding a right-wing terror group to attack refugee homes and other facilities.

The federal prosecutors' office said the five German nationals were arrested on Tuesday and several apartments in the eastern state of Saxony searched. They say they formed the "Freital Group," named after a Dresden suburb that has seen a string of anti-refugee protests and other incidents, by July last year.

Prosecutors said the group acquired more than 100 firecrackers from the Czech Republic.

They say members are believed to have carried out three attacks last fall — two on refugee homes in Freital and the other on a left-wing housing project in Dresden — in which windows were blown out and one person suffered cuts to the face.