The Grounds Set for Growth with H.I.G.'s Majority Stake

Deal News | Dec 19, 2024 | PR Newswire Cision H.I.G. Capital

H.I.G. Capital, a global alternative investment firm, has acquired a majority stake in The Grounds Real Estate Development AG, a leading real estate developer in the Greater Berlin Area. The acquisition was completed through a rights issue, reinforcing H.I.G.'s commitment to expanding its reach in the German residential sector. Founded in 2007, The Grounds boasts a diverse portfolio of residential assets, developments, and a land bank situated in Berlin, positioning itself to address the acute housing demand in the region. With this strategic investment, The Grounds aims to leverage H.I.G.'s significant resources and experience to enhance its offerings and capitalize on value-add opportunities. The move underscores H.I.G.'s belief in the long-term potential of the German housing market and its intent to collaborate closely with The Grounds' management team.

Sectors

Real Estate
Alternative Investment

Geography

Germany – The Grounds Real Estate Development AG operates primarily in the Greater Berlin Area, highlighting the geographical focus of the investment.
United States – H.I.G. Capital, headquartered in Miami, signifies a cross-border financial transaction involving a U.S.-based investment firm.

Industry

Real Estate – The article discusses H.I.G. Capital's investment in a real estate development company, indicating critical developments in the real estate industry in Berlin.
Alternative Investment – H.I.G. Capital operates as a global alternative investment firm, specializing in private equity, real estate, and other investment strategies.

Financials

$67 billion – The capital under management by H.I.G. Capital.
$53 billion – The combined sales of H.I.G. Capital's current portfolio companies.

Participants

Name	Role	Type	Description
H.I.G. Capital	Bidding Company	Company	A global alternative investment firm with $67 billion of capital under management, specializing in diverse investment strategies.
The Grounds Real Estate Development AG	Target Company	Company	A real estate development company based in the Greater Berlin Area, with a focus on residential properties.
Riccardo Dallolio	Managing Director, Europe	People	A key executive at H.I.G. Realty in Europe, involved in the investment in The Grounds.
Stelios Theodosiou	Managing Director, Europe	People	Another key executive at H.I.G. Realty in Europe, discussing the strategic aspect of the investment.