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

H.I.G. Realty's Strategic Recapitalization

H.I.G. Capital, one of the world’s leading alternative investment firms, has recently announced a significant recapitalization process worth $1.6 billion for its subsidiaries, Ella Resorts and OB Streem. This move is designed to bolster both entities' growth potential, further enhancing H.I.G.'s position in the global market.

Ella Resorts: Expanding Luxury Hospitality

Ella Resorts stands as a premier hotel platform under H.I.G. Realty, focusing on high-end vacation destinations across the Mediterranean. With a current portfolio housing approximately 4,400 rooms, the company is actively pursuing an ambitious expansion plan aimed at reaching a target of 10,000 rooms. This increase would involve strategic acquisitions in lucrative markets such as Italy, Greece, and Spain. The recapitalization not only aids in financing new acquisitions but also facilitates ongoing renovations and repositioning of existing resort properties, ensuring that they meet the evolving expectations of luxury travelers.

OB Streem: Strengthening Integrated Logistics

On the logistics front, OB Streem operates as a fully integrated platform managing over 400,000 square meters of warehouse space. Their infrastructure is pivotal for key European trade routes and includes a wide array of services from refrigerated facilities to container depots. The financial recapitalization will empower Streem to elevate its service offerings further, expand its logistical footprint, and enhance its operational efficiency.

According to Riccardo Dallolio, Managing Director at H.I.G. Realty Europe, the successful refinancings of these two significant platforms mark an important milestone in their evolution. This enables H.I.G. to maintain its commitment to acquiring and developing real estate within sectors that are foundational to the European economy. Dallolio emphasized that by harnessing their combined expertise in real estate and private equity, H.I.G. Realty is well-positioned to push forward with these strategic initiatives.

Confidence in Future Growth

The recapitalization was led and underwritten by the Piraeus Bank with participation from several other prominent European financial institutions. This transaction reflects the banking syndicate's confidence in the long-term growth prospects of both Ella Resorts and OB Streem, which are instrumental to the European economy. Stelios Theodosiou, also a Managing Director of H.I.G. Realty Europe, reiterated that this successful refinancing allows both platforms to enter a new phase of development.

Streem is focused on solidifying its local market position while simultaneously expanding its international reach, particularly in Italy and Spain. The robust backing from institutional financiers underscores the quality of the platforms that have been built and enables continued investment in assets to optimize equity utilization.

About H.I.G. Capital

Founded in 1993 and headquartered in Miami, H.I.G. Capital has established itself as a leading alternative investment firm managing $74 billion in equity across various sectors, with a keen focus on mid-market companies. The firm specializes in providing flexible capital solutions, including debt and equity investments, and is committed to creating value through disciplined management and a strong operational focus. H.I.G. is globally recognized for its strong performance and has successfully managed over 400 companies worldwide, with a portfolio of over 100 businesses contributing a combined revenue exceeding $53 billion.

For more information on H.I.G. Capital, visit hig.com.