H.I.G. Realty Expands Urban Logistics Platform in the UK through Strategic Acquisitions

H.I.G. Realty Expands Urban Logistics Platform in the UK

H.I.G. Capital, a prominent global alternative investment firm managing over $70 billion in assets, has made headlines with its recent acquisition of two top-tier logistics properties in the Greater London area. This strategic move aims to bolster its urban logistics platform in the UK, aligning with trends in e-commerce and urban distribution.

Key Acquisitions

The properties, acquired off-market in Erith and Rainham, are strategically located along critical logistics corridors with direct access to Central London and major transportation routes. These sites are fully leased, but due to the existing lease structures, they are significantly under-rented, presenting a unique opportunity for value enhancement.

H.I.G. plans to implement a systematic renovation and repositioning strategy to unlock the potential of these assets, focusing on high-quality, sustainable logistics spaces tailored for last-mile delivery, industrial outdoor storage, and flexible multi-tenant use. This proactive approach not only aims to transform the properties but also adheres to environmental, social, and governance (ESG) principles, responding to modern market demands.

Growth of the UK Platform

With these acquisitions, H.I.G. Realty's UK urban logistics platform now exceeds 1.5 million square feet, with a gross asset value (GAV) of over £300 million. The company's strategy targets high-demand, supply-constrained niche markets within London and the Golden Triangle—areas where demand for modern institutional logistics properties continues to exceed supply.

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, expressed confidence in the potential of these acquisitions, stating, “This acquisition reflects our belief in the ongoing structural growth of urban logistics and our ability to identify mispriced opportunities in one of Europe’s most dynamic industrial markets. Both sites offer immediate cash flow and solid rental yields, as well as long-term repositioning potential.”

Commitment to Resilient Properties

Jérôme Fouillé, another Executive Director at H.I.G. Realty, emphasized the firm’s continued focus on building a superior and resilient portfolio of logistics properties in urban infill markets characterized by strong fundamentals and limited new supply. “These transactions exemplify our thematic approach and operational execution targeting under-managed real estate that has the potential for modern, ESG-compliant products,” he noted.

The firm remains attentive to various promising opportunities within the UK and Continental Europe, seeking to further enhance its portfolio in urban logistics.

About H.I.G. Capital

Founded in 1993, H.I.G. Capital is one of the world's leading alternative investment firms, with investments across various asset classes and sectors. From management buyouts and recapitalizations to corporate carve-outs, H.I.G. proactively manages its investments to create lasting value. The company has invested in over 400 businesses worldwide, managing an extensive portfolio that generates substantial revenue. For more information about H.I.G. Capital, visit hig.com.