H.I.G. Realty Expands Urban Logistics Presence in London
H.I.G. Capital, a renowned alternative investment firm managing approximately $70 billion, has successfully acquired two prime last-mile logistics estates in Greater London. These acquisitions represent a strategic move to enhance their UK urban logistics platform.
The newly acquired properties in Erith and Rainham are ideally situated along important logistics routes that offer direct access to Central London and significant arterial roads. One of the notable advantages of these sites is their ability to provide immediate income alongside the potential for substantial value addition through strategic renovations, rental adjustments, and environmentally friendly upgrades.
Acquired at a notable discount compared to replacement costs, these assets are fully occupied but currently under-rented due to outdated lease structures. H.I.G. Realty’s strategic vision involves unlocking this latent value through a phased refurbishment plan and site reconfiguration, thereby delivering high-standard, eco-friendly logistics spaces tailored for last-mile needs, outdoor storage, and adaptable multi-occupancy use.
With these acquisitions, H.I.G. Realty's UK logistics portfolio expands over 1.5 million square feet and boasts a gross asset value exceeding £300 million. The platform is particularly focused on high-demand, supply-constrained submarkets within London, where the demand for modern, high-quality logistics properties continues to surpass supply.
Riccardo Dallolio, Managing Director at H.I.G. Realty for Europe, remarked on these acquisitions, stating, "These additions to our portfolio illustrate our strong belief in the ongoing growth trajectory of urban logistics and our capability to identify undervalued opportunities within one of Europe’s most vibrant industrial markets. The properties not only generate immediate income and offer promising rental potential but also come with significant opportunities for long-term repositioning. We are excited to scale our UK presence further with these strategically located assets.”
Adding further insight, Jérôme Fouillé, another Managing Director at H.I.G. Realty in Europe, expressed, "Our focus is on constructing a robust and resilient portfolio of logistics properties in urban regions that showcase clear fundamentals and limited new supply. These transactions embody our thematic investment strategy, which emphasizes operational execution targeting properties that are under-managed yet hold the promise of becoming modern, environmentally friendly products in the market. We are actively assessing a promising pipeline of similar opportunities across the UK and Europe.”
About H.I.G. Capital
Established in 1993, H.I.G. Capital stands as a prominent global alternative investment firm overseeing $70 billion in capital. Headquartered in Miami, the firm operates numerous offices across the United States, as well as several international locations, focusing primarily on offering both equity and debt financing to mid-market enterprises through a flexible and hands-on approach.
H.I.G. Capital’s equity funds are minted for management buyouts, recapitalizations, and corporate carve-outs of both thriving and underperforming businesses within the manufacturing and services sectors. Additionally, the debt funds provide capital ranging from senior debt to junior financing across a diverse array of businesses, emphasizing direct origination processes as well as secondary market investments. The firm’s real estate funds target value-added properties with potential for enhanced management practices.
With its extensive portfolio, H.I.G. has invested in and managed over 400 companies worldwide, ensuring many of them thrive with combined sales exceeding $53 billion. For more information, you may find details on H.I.G.’s official website.
Contact:
Riccardo Dallolio
Managing Director
London W1K 4QB
P: +44 (0) 207 318 5700
Jérôme Fouillé
Managing Director
Frequently Asked Questions
What recent acquisitions has H.I.G. Realty made?
H.I.G. Realty has acquired two last-mile logistics estates in Greater London to strengthen its urban logistics platform.
Why are these acquisitions significant?
They are located along key logistics corridors offering immediate income potential and substantial value-add opportunities through planned renovations.
What is H.I.G. Capital's investment focus?
H.I.G. Capital specializes in providing both equity and debt capital to middle-market companies, focusing on operational improvements.
How large is H.I.G. Realty's UK logistics platform?
It encompasses over 1.5 million square feet with a gross asset value exceeding £300 million.
What are the future plans for H.I.G. Realty?
H.I.G. Realty aims to expand its portfolio by targeting additional undervalued logistics opportunities across the UK and Europe.
