EBRD Mulls Investment In Bluehouse Real Estate Fund

The European Bank for Reconstruction and Development is considering pouring €25 million (US$32.2 million) in Bluehouse Accession Property II, a real estate investment fund investing in emerging markets, according to a Bank release. The fund is managed by Greek private equity and venture capital management firm T2 Bluehouse Capital. The EBRD project depends on final review, with the Bank expecting a board decision by July 11. Bluehouse AP II will be established for the purpose of acquiring, developing, renovating, reconstructing, owning and managing real estate property in Romania, Bulgaria, Ukraine, Moldova and Serbia and Montenegro, with aggregate capital commitments of up to €100 million (US$129 million).

The Cyprus-registered fund announced in early March plans to raise €146 million (US$188 million) to fund development projects mainly in Romania and Bulgaria. Bluehouse intended to offer shares by private placing to institutional investors and then float on the Alternative Investment Market of the London Stock Exchange. Deutsche Bank is the global co-coordinator and book-runner to Bluehouse’s placing. Bluehouse Capital Partners, the fund already managed by the Greek firm, has already acquired a diversified real estate portfolio in Bulgaria and Romania valued at approximately €55 million (US$70.9 million).