H.I.G. Capital Expands European Last-Mile Delivery Network with Strategic French Acquisitions

In a significant move that strengthens its position in the rapidly evolving logistics sector, H.I.G. Capital has announced the acquisition of four strategic last-mile delivery facilities across major French metropolitan areas. The acquisition comes at a time when last-mile delivery capabilities have become increasingly crucial for retailers and logistics providers in meeting growing consumer demands for rapid delivery services.

Strategic Portfolio Expansion

The newly acquired portfolio encompasses four last-mile and parcel delivery assets strategically positioned in the key logistics hubs of Toulouse, Bordeaux, Caen, and Rennes. These facilities are fully leased to industry-leading tenants including Amazon, XPO, and Kuehne+Nagel, underscoring the portfolio’s strategic value in France’s logistics landscape.

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, emphasized the strategic importance of the acquisition: “We are very pleased with this transaction, as it aligns well with our strategy to grow our logistics and last-mile platform in key locations across Europe. We are confident that the high-quality assets in the Portfolio will help us to capture the long-term growth potential for the sector.”

Understanding Last-Mile Delivery’s Critical Role

The significance of this acquisition becomes clear when considering the vital role of last-mile delivery in today’s retail ecosystem. Last-mile delivery represents the final phase of the delivery process, where products move from warehouse shelves at distribution centers to customers’ doorsteps. While this final leg is often the most expensive and time-consuming part of the shipping process, it has become increasingly critical to customer satisfaction and retail success.

Recent market research indicates that consumer expectations for rapid delivery have risen dramatically, with 25% of shoppers willing to switch retailers if their orders don’t arrive within three and a half days. This consumer demand has transformed last-mile delivery capabilities from a luxury to a necessary competitive advantage for retailers and logistics providers.

Market Dynamics and Growth Potential

Jérôme Fouillé, Managing Director at H.I.G. Realty in Europe, highlighted the market opportunity: “This acquisition demonstrates our ability to identify and execute attractive investment opportunities in France, allowing us to scale our pan-European logistics strategy. The Portfolio is well positioned in logistics sub-markets with positive supply/demand imbalance, which will continue to drive rental growth.”

The investment comes as the logistics sector grapples with the challenges of efficient last-mile delivery, particularly in both urban and rural areas. Urban areas face delays due to traffic congestion, while rural deliveries are complicated by long distances between delivery points. H.I.G.’s strategic positioning of these facilities in key metropolitan areas suggests a focus on optimizing delivery efficiency in high-demand regions.

H.I.G. Capital’s Long History in Investment

H.I.G. Capital, with $66 billion of capital under management, continues to demonstrate its commitment to strategic infrastructure investment. The global alternative investment firm, headquartered in Miami with offices across the United States, Europe, South America, and Asia, has invested in and managed more than 400 companies worldwide since its founding in 1993. The firm’s current portfolio includes more than 100 companies with combined sales exceeding $53 billion.

This latest acquisition reflects H.I.G.’s understanding of the growing importance of last-mile delivery infrastructure in an increasingly e-commerce-driven economy. As consumer expectations for rapid delivery continue to rise, investments in strategic last-mile delivery facilities are likely to become increasingly valuable assets in the global logistics landscape.

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