#H.I.G. Capital #London #UK #Real Estate #Urban Logistics

H.I.G. Realty Expands Urban Logistics Platform

H.I.G. Capital, a prominent global alternative investment firm managing $70 billion in assets, recently made headlines with its strategic acquisition of two key last-mile logistics properties in Greater London. This significant move underscores H.I.G.'s commitment to strengthening its urban logistics platform and expanding its portfolio in one of Europe's most competitive real estate markets.

Strategic Acquisitions

The two properties, located in Erith and Rainham, were obtained off-market, strategically positioned along essential logistics corridors that provide direct access to central London and major traffic arteries. Both sites are not only fully leased but also possess substantial potential for value enhancement through targeted repositioning, rental reviews, and ESG-driven upgrades. This move reflects H.I.G.'s belief in the lasting structural growth of urban logistics in a landscape where demand for modern, institutional-grade logistics space continues to outstrip supply.

Unlocking Embedded Value

Despite being fully occupied, the acquired properties have been significantly under-rented due to legacy lease agreements. H.I.G. is poised to capitalize on these inherent advantages through a phased renovation and reconfiguration strategy. This approach aims to deliver high-quality, sustainable logistics settings tailored for last-mile, industrial outdoor storage and flexible multi-tenancy arrangements. The vision is clear: to transform these sites into premier logistics hubs capable of meeting modern demands.

Expansion of the Platform

With these acquisitions, H.I.G.'s British urban logistics platform now encompasses over 140,000 square meters, boasting a gross value of over £300 million. The platform is particularly focused on hard-to-access submarkets with limited supply, including areas around London and the Golden Triangle. This focused strategy positions H.I.G. favorably amid growing demand for cutting-edge logistics facilities.

Leadership Insights

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, commented, "These acquisitions reflect our conviction in the persistent structural growth of urban logistics and our ability to identify mispriced opportunities in one of Europe’s most dynamic industrial markets. Both locations offer immediate earnings potential and strong rental reversion, alongside long-term repositioning opportunities. We are excited to further expand our presence in the UK with high-quality, well-located assets."

Jérôme Fouillé, Managing Director at H.I.G. Realty in Europe, added, "We remain focused on building a premier and resilient portfolio of logistics properties in urban infill markets with clear entry points and restricted new supply. These transactions exemplify our thematic approach and operational execution on under-managed estates with the potential to introduce modern, ESG-based products to the market. We continue to seek promising opportunities like these, both in the UK and across Europe."

About H.I.G. Capital

Founded in 1993, H.I.G. Capital has established itself as a leader in the global investment landscape, having invested in and managed over 400 companies. The firm operates from its headquarters in Miami and maintains offices across various global locations, including New York, Chicago, San Francisco, and London.

H.I.G. specializes in providing both debt and equity to middle-market companies, applying a flexible, operationally-focused approach to add value. The firm’s asset management capabilities encompass numerous segments, including private equity, debt funds, public BDCs, and real estate investments. Its commitment to deploying capital effectively ensures continued success in capitalizing on emergent and promising investment landscapes.

For more details about H.I.G. Capital's recent initiatives and investments, visit hig.com.