H.I.G. Realty Acquires a Portfolio of Three Buildings in a Prime Residential area of Madrid
LONDON – October 19, 2023 – H.I.G. Capital, LLC (“H.I.G.”), a leading global alternative investment firm with $59 billion of capital under management, is pleased to announce that one of its affiliates has completed the acquisition of a real estate portfolio in central Madrid, Spain, comprised of three buildings totalling 20,000 sqm. The buildings will undergo an extensive renovation and transformed into a high-standard residential asset with strong environmental credentials, benefitting from consistent growth of demand for housing accommodation in Madrid.
Located in the consolidated residential area of Arturo Soria, the portfolio is currently comprised of three commercial properties, two office buildings and one hotel. All three buildings have received the approval to be converted into a residential scheme consisting of 267 units for rent and sale. The asset will have a comprehensive suite of amenities including swimming pools, gym, food courts, cinema, terraces, and roof top with dining areas.
Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe commented: “We believe that the current residential market in Madrid benefits from strong fundamentals due to a lack of quality accommodation and high demand. This transaction demonstrates our ability to access sizeable assets in undersupplied markets with the potential of becoming a highly liquid, institutional product as the result of implementing our value-add initiatives”.
Esteban Caja Samboal, Managing Director at H.I.G. Realty in Europe, added: “We plan to deliver a high-quality scheme which caters to the demand from young professionals and families for new housing with luxury amenities, within an exceptionally located Madrid district. Given the strong market dynamics, we continue looking for opportunities in this sector, including converting obsolete office assets into state of the art residential properties.”
About H.I.G. Capital
H.I.G. is a leading global alternative investment firm with $59 billion of capital under management.* Based in Miami, and with European offices in London, Hamburg, Madrid, Milan, Paris and U.S. and Latin American offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, Bogotá, Rio de Janeiro, São Paulo. H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche, and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
- H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $52 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.