H.I.G. Capital Enhances UK Urban Logistics with Strategic Acquisitions
H.I.G. Capital, a prominent global alternative investment firm managing a staggering $70 billion in capital, has made a significant expansion in its UK Urban Logistics portfolio. This expansion comes through the acquisition of two strategically located last-mile logistics estates in Greater London. The properties, acquired off-market in the towns of Erith and Rainham, are ideally situated along critical logistics corridors, providing direct access to Central London and major arterial routes.
Both sites are fully leased but present considerable potential for value enhancement through a combination of strategic repositioning, rental adjustments, and environmentally sustainable upgrades. H.I.G. acquired these assets at a notable discount below their replacement costs, highlighting a clear opportunity amidst the existing market conditions. The current leases are legacy contracts reflecting previous market rates, leading to the realization that the properties are significantly under-rented.
The firm has laid out plans for a phased refurbishment and reconfiguration strategy aimed at delivering high-specification, sustainable logistics facilities tailored for last-mile operations, industrial outdoor storage, and flexible multi-let occupiers. This strategic move is designed to meet the growing demand for modern logistics spaces as e-commerce continues to thrive along with intensified urban development.
Following these acquisitions, H.I.G. Realty's portfolio dedicated to UK IOS (Industrial Outdoor Storage) and logistics now extends over 1.5 million square feet, representing a gross asset value exceeding £300 million. The focus remains on high-barrier, supply-constrained submarkets across London and the Golden Triangle, where the need for modern, high-quality logistics stock outpaces availability.
Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, expressed confidence in the structural growth of urban logistics. "These acquisitions validate our strategy to identify mispriced opportunities in one of Europe’s most vibrant industrial markets. With immediate income generation and robust rental reversion opportunities available, we are pleased to amplify our presence in the UK through high-quality, well-situated assets."
He was echoed by his colleague Jérôme Fouillé, Managing Director at H.I.G. Realty in Europe, who emphasized their ongoing commitment to cultivating a prime and resilient portfolio within urban infill markets. "Our thematic approach prioritizes under-managed estates with the potential to deliver modern, environmentally aligned logistics solutions to the market," he stated.
In-depth analyses suggest that these acquisitions are indicative of H.I.G.'s operational execution strategy, targeting properties that await a renaissance under new management and investment. The firm continues to explore a pipeline of comparable opportunities, not just within the UK but extending to continental Europe, keen on harnessing market trends favoring urban logistics.
Operating since 1993, H.I.G. Capital specializes in providing capital solutions across various sectors, investing in management buyouts, recapitalizations, and existing businesses. Their expertise spans from debt to equity investments, enabling them to adapt swiftly to new market dynamics.
Both sites are fully leased but present considerable potential for value enhancement through a combination of strategic repositioning, rental adjustments, and environmentally sustainable upgrades. H.I.G. acquired these assets at a notable discount below their replacement costs, highlighting a clear opportunity amidst the existing market conditions. The current leases are legacy contracts reflecting previous market rates, leading to the realization that the properties are significantly under-rented.
The firm has laid out plans for a phased refurbishment and reconfiguration strategy aimed at delivering high-specification, sustainable logistics facilities tailored for last-mile operations, industrial outdoor storage, and flexible multi-let occupiers. This strategic move is designed to meet the growing demand for modern logistics spaces as e-commerce continues to thrive along with intensified urban development.
Following these acquisitions, H.I.G. Realty's portfolio dedicated to UK IOS (Industrial Outdoor Storage) and logistics now extends over 1.5 million square feet, representing a gross asset value exceeding £300 million. The focus remains on high-barrier, supply-constrained submarkets across London and the Golden Triangle, where the need for modern, high-quality logistics stock outpaces availability.
Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, expressed confidence in the structural growth of urban logistics. "These acquisitions validate our strategy to identify mispriced opportunities in one of Europe’s most vibrant industrial markets. With immediate income generation and robust rental reversion opportunities available, we are pleased to amplify our presence in the UK through high-quality, well-situated assets."
He was echoed by his colleague Jérôme Fouillé, Managing Director at H.I.G. Realty in Europe, who emphasized their ongoing commitment to cultivating a prime and resilient portfolio within urban infill markets. "Our thematic approach prioritizes under-managed estates with the potential to deliver modern, environmentally aligned logistics solutions to the market," he stated.
In-depth analyses suggest that these acquisitions are indicative of H.I.G.'s operational execution strategy, targeting properties that await a renaissance under new management and investment. The firm continues to explore a pipeline of comparable opportunities, not just within the UK but extending to continental Europe, keen on harnessing market trends favoring urban logistics.
Operating since 1993, H.I.G. Capital specializes in providing capital solutions across various sectors, investing in management buyouts, recapitalizations, and existing businesses. Their expertise spans from debt to equity investments, enabling them to adapt swiftly to new market dynamics.
Topics General Business）
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