H.I.G. Realty Strengthens Last-Mile Logistics Investment in France

H.I.G. Realty Expands Last-Mile Logistics Investment in France

H.I.G. Capital, a prominent player in the alternative investment sector, recently announced a strategic enhancement of its logistics portfolio by acquiring properties in France’s two major cities: Paris and Lyon. This move showcases H.I.G.'s commitment to last-mile logistics, an area experiencing growth due to increasing e-commerce demands and evolving supply chain needs.

The acquisition includes two fully leased logistics assets strategically positioned for optimal accessibility. These properties are located near key highways and airports, ensuring efficient distribution channels for goods. The combined footprint of around 50,000 square meters spans six individual sites, which present significant opportunities for enhancements and upgrades. H.I.G.'s aim is to elevate these facilities to meet the rigorous standards expected of grade-A logistics spaces.

Riccardo Dallolio, who oversees H.I.G. Realty’s operations in Europe, expressed enthusiasm about the acquisition. He stated, "We are excited to further strengthen H.I.G. Realty's logistics presence in France with the addition of these key assets in Paris and Lyon. This investment aligns with our strategy of acquiring well-located properties that support the long-term expansion of our urban logistics platform."

Jérôme Fouillé, also a Managing Director at H.I.G. Realty, highlighted the attractiveness of the last-mile logistics sector, particularly in urban markets like Paris and Lyon, which face supply constraints. He emphasized that this acquisition reflects their confidence in the strong fundamentals of the last-mile logistics market and its long-term growth trajectory.

This acquisition aligns seamlessly with H.I.G.'s overall strategy, as the firm continuously seeks opportunities to bolster its logistical operations throughout France. The emphasis on last-mile logistics is crucial as online shopping continues to surge, making strategically located facilities vital for timely and efficient product delivery. By investing in these high-potential assets, H.I.G. aims to not only enhance operational efficiency but also tap into new revenue streams associated with online commerce.

H.I.G. Capital manages a substantial portfolio with $68 billion in capital across various sectors, demonstrating its robustness in navigating the complexities of global markets. The firm’s diverse investment strategy encompasses a range of sectors, including real estate, where it focuses on value-added properties, offering possibilities for improvement and repositioning.

For over two decades, H.I.G. has successfully invested in and managed more than 400 companies worldwide. Its impressive portfolio reflects a commitment to growth and value creation across various industries. With its latest acquisition in the logistics domain, H.I.G. Realty embarks on a promising journey toward investing in an asset class poised for resilience and longevity, aligning with the ongoing transformation of trade and logistics in metropolitan environments.

In summary, H.I.G. Realty’s recent acquisition in Paris and Lyon marks a significant milestone in its strategy to strengthen last-mile logistics capabilities. This strategic investment underscores the firm’s dedication to enhancing its logistics platform while capitalizing on the robust growth potential in urban logistics sectors across Europe.