An affiliate of H.I.G. Capital has launched Highground Living. This residential real estate platform in Germany aims for a volume of one billion euros and is based in Berlin. Highground's formation results from the consolidation of H.I.G.'s existing holdings in the Berlin area and a new investment in a residential real estate portfolio in Leipzig and Dresden. This portfolio is valued at 450 million euros.
Highground Living is designed to combine institutional ownership with an operational platform. The objective is to build a scalable residential real estate business focused on enhancing asset value. Concurrently, it aims to provide high-quality housing in German urban markets. Germany is considered one of Europe's largest residential real estate markets. There continues to be a structural housing shortage, coupled with solid demand and a limited supply of new builds.
Strategic Direction and Market Assessment
H.I.G. Capital views these long-term fundamentals as an attractive basis for further investment and platform growth. Riccardo Dallolio, Managing Director and Head of H.I.G. Realty Europe in London, commented accordingly. He described Highground's launch as a significant step for H.I.G. Realty's European residential strategy. The German residential market has been identified as a conviction market, and a scalable platform has been created to capitalise on current market opportunities.
The Berlin-based company plans to progressively expand both its portfolio and operational platform. Stelios Theodosiou, also a Managing Director at H.I.G. Realty Europe, highlighted that Highground represents an institutional operational platform capable of generating long-term value through active asset management and disciplined portfolio growth. The support of the management team in expanding within the German residential real estate market was stated as an objective.
Platform's Core Objectives
- —Continuous improvement of the performance of real estate holdings.
- —Provision of high-quality housing in established German urban markets.
- —Expansion of the portfolio and operational structures, supported by market dynamics.
- —Creation of long-term value through institutional asset management and portfolio growth.
The focus on the structural conditions of the German housing market, characterised by persistent demand and limited supply, forms the basis for the platform's expansion plans. H.I.G. Capital manages 75 billion US dollars in capital, making it a significant player in the global investment segment.
