Blue Colibri beats target on latest European opp fund

The Luxembourg-based opportunistic real estate investor held a final close on €165 million for its Fund II, exceeding its original €150 million target goal.

Blue Colibri, a Luxembourg-based private equity real estate fund manager, has held a €165 million final close on its second European opportunity fund, Blue Colibri Capital Partners II.

The firm exceeded its €150 million target for the fund which will make opportunistic real estate investments in office, retail, and hotel properties in select cities across Germany, Austria, and France.

The firm received about 70 percent of the commitments from existing investors, and the rest from new backers, including endowments, funds-of-funds and family offices.

The investment strategy will mirror the firm’s previous fund which collected €205 million back in 2006 which aimed to buy distressed real estate below replacement cost, refurbish at the property level, and sell to core buyers seeking cash flow. This vehicle is nearly fully divested.

Blue Colibri will target deal sizes ranging from approximately €25 million to €75 million for the fund, and has already made four investments. It has deployed about 20 percent of the fund’s capital on two offices in Dusseldorf, one in Frankfurt and one in Paris.

The firm is run by managing partner Collin Schmitz-Valckenberg who started at Munich private equity group GMM before founding Orlando Real Estate which changed its name to Blue Colibri back in 2012.

MVision Private Equity Advisers acted as placement agent to the firm and King & Wood Mallesons acted as legal advisor.