#Norway #Oslo #H.I.G. Realty #Norway Logistics #European Investments

H.I.G. Realty Expands Its European Footprint in Norway

H.I.G. Capital, a prominent global alternative investment firm managing $70 billion in assets, has made a significant move by acquiring a portfolio of four logistics and light-industrial properties in Norway. This acquisition represents a strategic step for H.I.G. Realty to enhance its European logistics platform, thus reinforcing its presence in a market characterized by growing demand.

Overview of the Acquisition

The newly acquired portfolio encompasses approximately 25,000 square meters of built space situated on a sprawling 110,000 square meter plot. This strategic location is expected to capitalize on robust tenant demand, offering flexible building configurations that include temperature-controlled spaces and cross-dock capabilities. The properties boast excellent connectivity to the highway network, which is crucial for operational efficiency in logistics.

H.I.G. Realty aims to implement a targeted value-add strategy for this portfolio. This will encompass operational enhancements juxtaposed with selective capital investments aimed at upgrading building specifications, stabilizing occupancy rates, and unlocking additional development potential permitted under existing zoning regulations. Furthermore, the assets will undergo a comprehensive ESG improvement program that involves preparing for solar energy utilization on rooftops, upgrading to LED lighting, and installing electric vehicle charging infrastructure for both passenger and freight vehicles.

Future Growth Prospects

These acquisitions dovetail with H.I.G.'s recent investments in innovative operating systems (IOS) across the UK, France, and Southern Europe, positioning the portfolio to achieve a stabilized value exceeding €1 billion in the near future. Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, remarked: "This transaction marks our expansion into the Nordic countries and represents a collection of well-located, functional assets in a region with limited supply. It illustrates our strategic recapitalization in the Norwegian industrial and logistics market following previous sales in the area."

Jérôme Fouillé, also a Managing Director at H.I.G. Realty in Europe, noted, "The acquisition of Borgeskogen allows us to extend our European logistics and IOS platform into Norway, a market experiencing significant supply constraints. Given the limited new construction of logistics properties around Oslo, coupled with rising tenant demand for modern, energy-efficient spaces, we see compelling fundamentals that support rental growth and long-term value creation."

About H.I.G. Capital

H.I.G. Capital operates as a global leader in alternative investing. With its base in Miami, H.I.G. maintains offices across the United States as well as global locations including London, Hamburg, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, Dubai, and Hong Kong. The company focuses on providing financing solutions to mid-sized companies, employing a flexible and operations-oriented approach aimed at creating high value.

The firm's equity funds primarily invest in management buyouts, recapitalizations, and corporate divestitures of both profitable and underperforming manufacturing and service businesses. Moreover, H.I.G.'s credit funds engage in senior, unitranche, and subordinate financing for businesses of various sizes, both on a primary direct basis and in secondary markets. H.I.G. also manages a publicly traded investment company, WhiteHorse Finance. Additionally, its real estate funds target value-add properties that can benefit from improved asset management procedures.

Since its inception in 1993, H.I.G. Capital has invested in over 400 companies worldwide, with its current portfolio comprising more than 100 companies generating a collective revenue exceeding $53 billion. Additional information can be found on their official website at hig.com.