H.I.G. Realty Expands Logistics Portfolio with Strategic Acquisition in France

H.I.G. Capital, a prominent global alternative investment firm with a robust $66 billion in assets under management, has recently made headlines by acquiring a significant portfolio of logistics properties in France. This strategic move reflects the company's unwavering commitment to growth in the logistics sector, particularly in last-mile and parcel delivery services.

The newly acquired portfolio consists of four key logistics assets located in prime urban markets within France, specifically Toulouse, Bordeaux, Caen, and Rennes. Each of these sites is fully leased to top-tier tenants, including well-known names like Amazon, XPO, and Kuehne+Nagel, which are recognized leaders in logistics and supply chain management.

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, expressed enthusiasm about the transaction, emphasizing its alignment with the firm’s strategy to expand its logistics and last-mile delivery platform across Europe. "We are very pleased with this acquisition, as it complements our efforts to tap into the long-term growth potential of the logistics sector," he stated.

Jérôme Fouillé, another Managing Director at H.I.G. Realty in Europe, highlighted the strategic advantage of the acquisition. He noted that the properties are located in logistics sub-markets characterized by a favorable supply and demand imbalance. This situation is expected to fuel rental growth potential in the future, thus enhancing the portfolio’s value.

H.I.G. Capital, which was established in 1993, has since invested in and managed over 400 companies globally, with a focus on mid-sized firms that demonstrate promising growth opportunities. Its breadth of operations spans multiple sectors, including real estate, infrastructure, and distressed assets, allowing the firm a unique vantage point in identifying lucrative investment opportunities.

With offices located in major U.S. cities such as Miami, New York, and Los Angeles, as well as international locations in cities like London, Madrid, and São Paulo, H.I.G. Capital is well-positioned to leverage its market expertise and extensive network. The firm specializes in both debt and equity investments, targeting companies that range from prosperous enterprises to those that could benefit significantly from operational improvements.

The logistics sector, particularly last-mile delivery, has seen a surge in demand due to the evolving retail landscape, with e-commerce driving the need for efficient and rapid delivery solutions. This trend has only accelerated with the global shift toward online shopping in recent years. Investing in strategic logistics assets not only aligns with H.I.G.'s aggressive growth strategy but also positions the firm to capitalize on the ongoing transformation within the logistics and delivery markets.

Future Outlook

As H.I.G. Realty integrates these new assets into its portfolio, the firm aims to implement enhanced management practices to optimize operations and drive profitability. The acquisition is not just a venture into logistics but represents a larger strategy of adapting to market demands and capturing opportunities that arise from emerging trends.

In summary, H.I.G. Capital's acquisition of last-mile logistics properties in France marks a significant advancement in its European logistics strategy, positioning the firm to benefit from the growth projected in the logistics sector. The focus on high-quality assets and reputable tenants speaks volumes about H.I.G.'s strategy to ensure sustainable growth and value creation in its investments.