H.I.G. Capital Expands Real Estate Portfolio Through Life Sciences and Logistics Investments
Real estate has become a growth driver for H.I.G. Capital’s diversified investment platform, with the firm completing multiple acquisitions targeting specialized property sectors including life sciences, logistics, and residential development. The strategy capitalizes on evolving demand patterns for specialized commercial real estate across key metropolitan markets.
H.I.G. Realty’s acquisition of Radio House and St. Andrew’s House in Cambridge, UK, positions the firm within Europe’s premier technology and life sciences hub. The 85,000-square-foot complex serves innovation-led companies while offering development opportunities in a supply-constrained market driven by research institutions and emerging technology firms.
“RHSAH represents a step in our strategy to invest in high-growth sectors in Europe,” said Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe. “We are committed to investing in high-quality locations and contributing to the thriving Life Science market in Cambridge.”
The Cambridge acquisition reflects H.I.G.’s focus on properties serving specialized tenant bases with limited alternative locations. Life sciences companies require specific infrastructure and proximity to research institutions, creating barriers to entry that support premium valuations and stable cash flows.
Logistics Real Estate Strategy
Continental European logistics represents another growth area for H.I.G.’s real estate investments. The firm acquired a logistics portfolio in France’s Paris and Lyon metropolitan areas, comprising six properties with approximately 50,000 square meters of space positioned for last-mile delivery applications.
“Last-mile logistics remains one of the most resilient and attractive asset classes, particularly in supply-constrained markets such as Paris and Lyon,” said Jérôme Fouillé, Managing Director at H.I.G. Realty. “This acquisition reinforces our confidence in the sector’s strong fundamentals and long-term growth potential.”
The French logistics assets benefit from direct highway and airport access while serving e-commerce and distribution demands across major metropolitan areas. H.I.G. identified capital improvement opportunities to enhance the properties’ positioning for grade-A logistics users requiring modern specifications.
Urban logistics has attracted institutional investment as e-commerce growth drives demand for distribution facilities near population centers. H.I.G.’s portfolio targets properties with development potential and strategic locations that support tenant expansion within constrained urban markets.
Life Sciences Real Estate Platform
H.I.G.’s life sciences real estate strategy extends beyond property acquisition to include development partnerships and tenant relationships. The firm signed a partnership with Queen Mary BioEnterprises Innovation Centre to deliver 40,000 square feet of incubator space in London’s Whitechapel district.
The Whitechapel project involves collaboration with Barts Life Sciences, Barts Health NHS Trust, Queen Mary University of London, and the UK Department of Health & Social Care. The development creates shared services and venture-building infrastructure critical for attracting startup companies and university spinouts.
“We are thrilled to partner with QMB in developing this first-class incubator space at Cavell Street,” said Fouillé. “Our collaboration marks a step in creating a vibrant life sciences cluster in Whitechapel and furthering the growth of H.I.G.’s life sciences real estate platform in the U.K.”
Ted Webster, Chairman of QMB, noted the partnership’s expansion potential: “Our partnership with H.I.G. is an exciting opportunity to expand our proven model of supporting life science startups. The new space will enable us to nurture the next generation of innovative companies.”
European Residential Development
German residential development has attracted H.I.G.’s investment through its acquisition of a controlling stake in The Grounds Real Estate Development AG. The Berlin-focused developer owns a diversified portfolio comprising standing assets, developments, and land bank across the Greater Berlin Area.
“Our investment in TGD and its management team gives us outstanding access to the German residential market, allowing us to leverage value-add opportunities at a pivotal time in the cycle,” said Dallolio.
Berlin’s housing shortage creates opportunities for residential developers with established land positions and development expertise. TGD’s portfolio includes high-quality residential properties addressing evolving resident needs across Berlin’s growing metropolitan area.
Stelios Theodosiou, Managing Director at H.I.G. Realty in Europe, emphasized long-term investment potential: “This transaction underscores our strong belief in the enduring value of the German residential sector. We are eager to join forces with TGD’s management team to drive forward our shared vision.”
H.I.G. Capital’s Real Estate Investment Philosophy
The firm’s real estate approach emphasizes value-added properties benefiting from improved asset management practices and market repositioning. H.I.G. Realty targets assets with operational improvement potential, tenant diversification opportunities, and geographic expansion possibilities.
Education real estate represents an emerging focus area through H.I.G.’s investment in Intellego Education, a European operator of private anglophonic schools. The platform provides support and operational expertise to independent schools across major European cities, capitalizing on growing demand for international education services.
“Intellego represents a unique opportunity to enter the private K-12 space with a best-in-class management team,” said Theodosiou. “We are excited to partner with Intellego to execute a growth strategy focused on creating a platform of unique, educationally excellent schools across continental Europe.”
Peter Burdon, CEO of Intellego, outlined the partnership’s objectives: “Intellego seeks to be the partner of choice for exceptional schools that are committed to retaining their individual ethos. Building on H.I.G.’s extensive expertise in the European real estate space, we look forward to partnering with schools who share our vision and purpose.”
Infrastructure and Specialized Assets
H.I.G.’s infrastructure investments complement its real estate strategy through acquisitions targeting essential services and specialized facilities. The firm’s infrastructure arm acquired Fluo Group, a Finnish waste management and recycling platform operating across the circular economy value chain.
Fluo’s integrated operations span waste collection, sorting, treatment, and downstream production of recycled materials including plastic granules and recovered lubricants. The platform serves over 3,000 businesses and 35,000 households through public-private partnerships across Finland.
“The waste management industry across Finland and the broader Nordic region is undergoing transformation driven by the move to a circular economy,” said Andrew Liau, Head of Europe Infrastructure at H.I.G. “We see potential to grow the business in new waste streams and to consolidate the market.”
Petri Aaltonen, CEO of Fluo, noted H.I.G.’s operational expertise: “This investment marks a milestone in Fluo’s journey to develop circular economy solutions. We look forward to partnering with H.I.G. to deliver even greater value to municipalities, businesses, and the environment.”
Market Trends and Investment Outlook
Specialized real estate sectors continue attracting institutional capital as investors seek properties with defensive characteristics and growth potential. H.I.G.’s focus on life sciences, logistics, and residential development positions the firm to benefit from demographic trends and technological advances driving space requirements.
Life sciences real estate benefits from pharmaceutical industry growth and biotechnology advancement requiring specialized laboratory and office facilities. Cambridge’s research ecosystem provides tenant demand and limited supply that supports premium valuations for well-positioned properties.
Urban logistics faces similar supply constraints as e-commerce growth drives demand for distribution facilities near population centers. H.I.G.’s French acquisitions target markets with limited development opportunities and established logistics infrastructure supporting last-mile delivery operations.
Residential development in supply-constrained markets like Berlin offers value creation opportunities through land assembly, entitlement processes, and construction management. H.I.G.’s partnership with established developers provides local expertise while leveraging the firm’s capital and operational resources.
Current real estate portfolio companies benefit from H.I.G.’s global platform and sector expertise across property types and geographies. The firm’s approach emphasizes operational improvements, tenant relationships, and market positioning that enhance asset values and generate returns through property fundamentals rather than financial leverage alone.