Private equity group strengthens European presence as investors compete for prime delivery infrastructure
H.I.G. Capital has acquired four French logistics facilities, marking another significant move in the increasingly competitive last-mile delivery sector, as institutional investors rush to secure strategic infrastructure assets across Europe.
The Miami-based investment group, which manages $66bn in capital, has secured facilities in Toulouse, Bordeaux, Caen and Rennes. The properties are fully let to blue-chip tenants including Amazon, XPO and Kuehne+Nagel. Financial terms were not disclosed.
The transaction highlights growing institutional interest in logistics infrastructure, particularly assets serving the crucial “last mile” of delivery networks. Research indicates that 25 per cent of consumers abandon retailers whose deliveries exceed three and a half days, creating pressure for sophisticated distribution networks.
“The positive supply-demand imbalance in these submarkets will continue to drive rental growth,” said Jérôme Fouillé, managing director at H.I.G. Realty Europe, pointing to the structural shortage of modern logistics facilities in key French metropolitan areas.
The deal comes as investors increasingly view last-mile logistics as critical infrastructure rather than conventional real estate. The final leg of delivery represents the most capital-intensive portion of the supply chain, with retailers and logistics operators competing for facilities that can support rapid fulfilment.
The French market presents particular strategic value due to its combination of dense metropolitan areas and extensive rural regions. Assets capable of serving both environments efficiently have attracted premium valuations from investors seeking defensive positions in the evolving retail landscape.
For H.I.G., which has invested in over 400 companies since its 1993 founding, the acquisition represents another step in building a pan-European logistics platform. The group’s current portfolio includes more than 100 companies with combined sales exceeding $53bn.
As consumer expectations continue to evolve and e-commerce penetration grows, the strategic value of well-positioned last-mile facilities appears set to increase further, despite broader market uncertainties.