H.I.G. Realty Expands Its Logistics Portfolio in Europe

H.I.G. Realty Expands Its Logistics Portfolio in Europe

In an exciting development for logistics investment, H.I.G. Capital, a prominent global alternative investment firm with an impressive $66 billion in capital under management, has made a strategic acquisition. An affiliate of H.I.G. recently acquired a portfolio comprising four logistics assets in critical metropolitan areas, marking a significant move in their logistics expansion strategy.

Overview of the Strategic Acquisition

This notable portfolio includes four essential last-mile and parcel delivery assets situated in key logistics hubs. These properties are located in vital areas that facilitate efficient delivery services. Notably, they are fully leased to top-tier tenants, including major players in the industry such as Amazon, XPO, and Kuehne+Nagel, ensuring a stable income stream and strong investment potential.

Insights from H.I.G. Realty Management

Speaking on the acquisition, Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, expressed enthusiasm. He emphasized that this acquisition aligns well with H.I.G.'s strategy to enhance their logistics and last-mile delivery platform across Europe. Dallolio stated, "The quality of these assets positions us well to capture the long-term growth potential in the logistics sector."

Strategic Importance of the Portfolio

Jérôme Fouillé, another Managing Director at H.I.G. Realty in Europe, further elaborated on the strategic significance of these assets. He noted, "This acquisition showcases our ability to pinpoint and capitalize on attractive investment opportunities, contributing to our broader pan-European logistics strategy. The properties are located in logistics sub-markets experiencing a favorable supply/demand imbalance, which sets the stage for continued rental growth."

About H.I.G. Capital

H.I.G. Capital stands out as a leading global alternative investment firm with a diverse portfolio. Established in 1993 and based in Miami, the firm has cultivated a vast network of offices across major cities such as Atlanta, Boston, Chicago, Los Angeles, New York, and San Francisco in the United States. Internationally, they have a strong presence in cities including Hamburg, London, Luxembourg, Madrid, Milan, and Paris.

Investment Strategies

H.I.G. focuses on a variety of investment strategies, providing both equity and debt resources to mid-sized companies. The firm's equity strategies encompass management buyouts, recapitalizations, and corporate carve-outs of both thriving and struggling businesses. Meanwhile, H.I.G.'s debt funds are involved in financing across the spectrum, offering senior, unitranche, and junior debt options. Furthermore, H.I.G. manages a publicly traded BDC named WhiteHorse Finance.

Real Estate and Infrastructure Investments

In addition to equity and debt investments, H.I.G. has strategically cultivated real estate funds aimed at acquiring value-added properties. These properties are identified for their potential to benefit significantly from improved management practices. Their infrastructure division places emphasis on value-add and core plus investments, aimed at fostering growth in essential infrastructure sectors.

The Path Ahead for H.I.G. Capital

With more than 400 companies under its management globally and a current portfolio that boasts over 100 companies generating combined sales exceeding $53 billion, H.I.G. Capital is well poised for continued growth. This latest acquisition not only strengthens their footprint in logistics but also enhances their overall investment strategy across Europe.

Frequently Asked Questions

What is the significance of H.I.G. Capital's recent acquisition?

The acquisition of four logistics assets enhances H.I.G. Capital's portfolio and signifies their commitment to expanding their logistics and last-mile delivery operations in Europe.

Who are the tenants in the newly acquired portfolio?

The portfolio is leased to notable companies, including Amazon, XPO, and Kuehne+Nagel, ensuring a reliable income stream for H.I.G. Realty.

What strategy does H.I.G. Capital follow for investments?

H.I.G. Capital employs a flexible approach, engaging in management buyouts, recapitalizations, and corporate carve-outs, alongside debt financing for a diverse range of companies.

Where are H.I.G. Capital's offices located?

The firm has offices in several key U.S. cities and maintains a global presence with offices in major international cities, including London, Hamburg, and Paris.

How does this acquisition align with H.I.G.'s goals?

This acquisition aligns with H.I.G.'s strategy of expanding its logistics platform, enabling them to capture growth opportunities in regions with favorable market dynamics for logistics.

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