#H.I.G. Capital #London #United Kingdom #Ella Resorts #OB Streem

H.I.G. Capital Completes Major Recapitalization

H.I.G. Capital, a prominent global alternative investment firm, has recently finalized a substantial recapitalization package worth $1.6 billion for its affiliates, Ella Resorts and OB Streem. This strategic move aims to bolster their operations in the hospitality and logistics sectors, providing a firm foundation for future growth.

Ella Resorts, which focuses on premium resort destinations across the Mediterranean, boasts an impressive portfolio containing around 4,400 lodging units. The company has plans to expand significantly in Italy, Greece, and Spain, aiming to increase its room count to 10,000 through a rigorous acquisition strategy. Such an ambitious plan reflects Ella's commitment to establishing a dominant presence in luxury hospitality.

On the other hand, OB Streem stands as a fully integrated logistics platform managing an extensive 400,000 square meters of warehousing. Streem is pivotal in facilitating critical logistics operations along essential trade routes in Europe. Its services include cold storage, ambient storage, container depot storage, and even plans for a new pier terminal, along with freight forwarding and transportation services.

Driving the Transactions

The financing deal was orchestrated primarily by Bank of Piraeus, incorporating several other esteemed European banks. This collaboration underscores the banking consortium's faith in the long-term prospects of both platforms within sectors crucial to the European economy.

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, shared his insights, stating, "The successful completion of these two refinancings is a significant milestone for both Ella Resorts and OB Streem. Our ongoing commitment focuses on acquiring and growing real estate platforms rooted in strong market fundamentals, benefitting from our expertise in real estate and private equity."

Similarly, Stelios Theodosiou, another key player in H.I.G. Realty, emphasized the advancements the companies are set to undergo. With this successful recapitalization, both Ella and Streem will enter a transformative development phase. Ella will work on its international expansion, while OB Streem continues solidifying its market presence. The backing received from institutional lenders demonstrates the quality and resilience of the platforms.

The H.I.G. Advantage

Since its inception in 1993, H.I.G. Capital has made substantial investments worldwide, managing over 400 companies. With an expansive capital under management approximating $74 billion, H.I.G.'s expertise spans multiple sectors, providing both debt and equity to middle-market companies. The firm's real estate funds are especially focused on value-added properties, which require effective management strategies for optimization.

In conclusion, the recapitalization of Ella Resorts and OB Streem not only reinforces H.I.G. Capital's strategic positioning in the hospitality and logistics sectors but also emphasizes the potential for future growth as both platforms navigate the dynamic market landscape over the coming years.