H.I.G. Realty Becomes Majority Stakeholder in The Grounds, Leading German Developer

H.I.G. Realty Becomes Majority Stakeholder in The Grounds

H.I.G. Capital, a prominent global alternative investment firm with an impressive $67 billion in assets under management, has announced a strategic move that will significantly enhance its presence in the German real estate market. The firm has successfully completed a subscription in a capital raise, positioning itself as the majority stakeholder in The Grounds Real Estate Development AG (TGD).

Founded in 2007, The Grounds is recognized as one of Germany's leading real estate developers, particularly within the Greater Berlin area. The company boasts a diverse portfolio, which includes residential properties, development projects, and a substantial land bank. TGD has established itself as a key player in the market by consistently delivering high-quality residential projects that meet the evolving demands of Berlin’s residents.

This recent investment positions TGD favorably to expand its operational capacity, enhance its current offerings, and ensure sustainable growth within the competitive real estate landscape. Moreover, it provides the company with the opportunity to take advantage of lucrative acquisition prospects aimed at addressing the critical shortage of quality housing in Berlin.

Riccardo Dallolio, Managing Director and head of H.I.G. Realty in Europe, expressed enthusiasm about this significant investment: "Our interest in TGD and its management team offers us excellent access to the German housing market, allowing us to seize value-added opportunities at this critical juncture in the cycle."

Adding to this sentiment, Stelios Theodosiou, also a Managing Director at H.I.G. Realty in Europe, highlighted the enduring value of the German residential sector: "This transaction reaffirms our strong belief in the persistent value of the German housing market. We are eager to collaborate with the TGD management team to further develop our shared vision and capitalize on the long-term potential of the market."

About H.I.G. Capital

Established in 1993, H.I.G. Capital operates globally with a focus on mid-market companies. The firm is headquartered in Miami, Florida, and has offices in major U.S. cities such as Atlanta, Boston, and San Francisco, as well as international presences in locations including Hamburg, London, and Hong Kong. H.I.G. provides both debt and equity capital, utilizing a flexible, operationally oriented approach that drives added value in its investments.

H.I.G.'s private equity funds focus on management buyouts, recapitalizations, and corporate carve-outs, while their debt funds target senior and junior debt financing for businesses across various sectors. Additionally, H.I.G.'s real estate funds are dedicated to value-added investments that can benefit from enhanced asset management practices.

With a portfolio comprising over 100 companies generating more than $53 billion in revenue, H.I.G. has a rich history of investing in over 400 businesses worldwide. For more information about H.I.G., visit their website at hig.com.