H.I.G. Capital Strengthens Its European Logistics Presence
LONDON — H.I.G. Capital, a prominent global alternative investment firm managing $70 billion in capital, has taken a significant step in its European logistics strategy by acquiring four logistics and light-industrial properties in Norway. This strategic addition enhances H.I.G.'s operational portfolio and expands its reach into the Nordic market.
Details of the Newly Acquired Assets
The newly acquired portfolio encompasses approximately 25,000 square meters of built area, situated on 110,000 square meters of land. These properties are designed to meet the high demand for logistics services, featuring flexible building configurations that include warm and covered storage space as well as cross-dock potential. Moreover, the assets boast excellent motorway connectivity, making them ideal for logistics operations. H.I.G. is committed to implementing a targeted value enhancement strategy for these properties, which will include operational improvements and selective capital investments aimed at upgrading building specifications and stabilizing occupancy rates.
Strategic Goals for the Portfolio
In line with its commitment to sustainability, H.I.G. will integrate a comprehensive Environmental, Social, and Governance (ESG) improvement program within the new portfolio. This program will focus on enhancements such as rooftop solar readiness, LED lighting upgrades, and the installation of electric vehicle charging infrastructure. By undertaking these initiatives, H.I.G. aims to not only improve the properties' operational performance but also contribute positively to the environment.
Market Opportunities in Norway
Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, emphasized the strategic importance of this transaction. He noted that the acquisition of these properties solidifies H.I.G.'s presence in the Nordic market, which is currently experiencing supply constraints. According to Dallolio, this portfolio includes well-located assets that present substantial opportunities for growth, marking a significant milestone for H.I.G.'s operations in Norway following their previous sale of notable industrial parks.
Continued Growth in the Nordic Region
Jérôme Fouillé, another Managing Director at H.I.G. Realty, pointed out the specific advantages of the Borgeskogen acquisition. He highlighted the considerable demand for modern, energy-efficient logistics space in Norway amidst limited development around Oslo. H.I.G. sees robust market fundamentals that support both rental growth and the potential for long-term value creation within this strategically important region.
About H.I.G. Capital
Founded in 1993, H.I.G. Capital is a leading global private equity and alternative investment firm headquartered in Miami. The firm has a diverse portfolio, encompassing over 400 companies across various sectors worldwide. With a keen focus on middle-market companies, H.I.G. specializes in providing both debt and equity capital, making it a significant player in the investment landscape. The firm’s real estate funds actively seek value-added investment opportunities, ensuring continuous growth and stability in their portfolio.
Global Presence and Operational Strategy
H.I.G. maintains a robust international network with offices spanning key economic regions, including several cities in the United States, Europe, South America, the Middle East, and Asia. This expansive footprint enhances H.I.G.’s capacity to engage with various markets and capitalize on regional opportunities. The firm’s operationally focused approach enables it to improve the value of its investments strategically.
Contact Information
For further inquiries regarding H.I.G. Capital, interested parties can reach out to:
Riccardo Dallolio
Managing Director
Phone: +44 (0) 207 318 5700
Jérôme Fouillé
Managing Director
Frequently Asked Questions
What is the significance of H.I.G. Capital's acquisition in Norway?
The acquisition strengthens H.I.G.'s presence in the European logistics market and enhances its operational portfolio in a growth-constrained area.
How does H.I.G. Capital plan to enhance the new logistics properties?
H.I.G. plans to implement a focused strategy that includes operational improvements and sustainable upgrades to meet modern logistical needs.
What are the key features of the newly acquired portfolio?
The portfolio includes flexible building configurations, strong tenant demand, and excellent motorway connectivity, making it well-suited for logistics operations.
What future expectations does H.I.G. Capital have for the logistics market in Norway?
The firm anticipates significant rental growth due to increasing demand for energy-efficient logistics spaces in supply-constrained markets.
What is H.I.G. Capital's approach to investments?
H.I.G. adopts an operationally focused approach that emphasizes enhancing the value of middle-market companies through strategic investment initiatives.
