#H.I.G. Capital #Norway #Oslo #Norway Logistics #ESG Improvement

H.I.G. Capital's New Logistics Acquisition in Norway

H.I.G. Capital, a prominent player in the global alternative investment landscape, continues to strengthen its European logistics presence. Recently, the firm announced the acquisition of four logistics and light-industrial properties located in Norway. This strategic move comes as part of H.I.G.'s ongoing commitment to expanding its real estate portfolio, which currently amounts to $70 billion in assets under management.

Portfolio Overview

The newly acquired logistics portfolio boasts a substantial footprint of approximately 25,000 square meters of built area, situated on a 110,000 square meter parcel of land. One of the key attractions of these properties is their ability to meet the increasing tenant demand in a market characterized by limited supply. These locations offer flexible building configurations that include both warm and covered storage options, thereby enhancing their appeal.

Moreover, the properties feature cross-dock capabilities and are supported by excellent motorway connectivity. This strategic advantage allows for more efficient logistics operations, which is critical in today’s fast-paced business environment.

Value Enhancement Strategy

H.I.G. Capital’s approach to maximizing the value of this portfolio involves a comprehensive strategy designed to enhance operational efficiency and bolster tenant occupancy. The firm plans to implement selective capital investments aimed at upgrading building specifications. This will not only improve site efficiency but also allow for additional development opportunities within the framework of existing zoning regulations.

Commitment to Sustainability

An essential aspect of H.I.G.'s strategy includes a robust commitment to environmental sustainability. The portfolio will undergo a rigorous ESG improvement program. This endeavor features initiatives such as preparing rooftops for solar energy installations, upgrading to LED lighting, and installing electric vehicle charging stations. These enhancements position the properties to be more energy-efficient and environmentally friendly, aligning with global sustainability trends.

Market Context in Norway

Norway represents a key market for H.I.G. Capital, particularly because of its status as one of the most supply-constrained logistics markets in Europe. With increasing demand for modern, energy-efficient warehouse spaces, the fundamentals for rental growth appear strong. This acquisition signals H.I.G.'s return to the Norwegian Industrial Logistics market, building upon its prior engagements which included selling assets like Kongsberg Technology Park and Raufoss Industripark.

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, remarked on the strategic significance of this acquisition, stating, "The Portfolio is a cluster of well-located, functional assets in a supply-constrained market." By recognizing the unique characteristics of the Norwegian logistics landscape, H.I.G. aims to thrive in this competitive environment.

Future Prospects

The addition of these properties is expected to play a pivotal role in H.I.G.'s broader European logistics strategy, which includes other recent investments in the United Kingdom, France, and Southern Europe. Collectively, these assets are projected to exceed a stabilized value of over €1 billion.

Jérôme Fouillé, another Managing Director at H.I.G. Realty in Europe, emphasized the opportunities presented by their acquisition in Borgeskogen, stating, "With limited new logistics development around Oslo, and increasing tenant demand for modern, energy-efficient space, we see strong fundamentals supporting rental growth and long-term value creation."

As H.I.G. Capital continues to expand its reach in the logistics sector, this acquisition is poised to not only enhance its portfolio but also contribute significantly to the improvement of sustainability standards within the industry.