H.I.G. Capital announces that its affiliate, H.I.G. Realty Partners, has acquired a two-office building portfolio comprising 15,000 square meters in Madrid’s Gobelas Street. The properties have traded for 25 million and were part of a portfolio purchased by Meridia Capital from GE Capital Real Estate in 2015.
Gobelas Street is in Madrid’s La Florida neighbourhood, on the A-6 highway corridor which is an established office district and the area is home to over 21,000 companies (INE, 2017) including DIA, Talgo and Tinsa as well as the Spanish headquarters of Hewlett Packard, LG Electronics, Oracle, Sodexo and Triumph Motorbikes amongst others.
H.I.G. Realty Partners has purchased numbers 41 to 49 of Gobelas street, a 2-asset complex: one of which was recently renovated, and the other asset is due to undergo a complete refurbishment.
The original portfolio which Meridia bought off GE Capital included eleven office buildings located in Madrid and Barcelona with a total GLA of 84,000m² including nº 518 of Alcala street and numbers 35-49 of Gobelas street.
H.I.G. Capital is a well-known name in Spain following their purchase, in 2013, of a portfolio distressed property from Sareb. The group also purchased the Valle Romano complex from Lone Star in early 2017 and entered Spain’s shopping center segment with the purchase of Park Ceuta and Plaza Éboli amongst others. More recently, in 2017, the fund led in Spain by Pedro Abella, invested €32 million in the acquisition of 430 tourist apartments from Neinor.
In early 2019, the group announced the closing of H.I.G. Europe Realty Partners II (the “Fund”) with aggregate capital commitments of €673 million, well above its target. The Fund will principally make value-add investments in the small and mid-cap real estate sector in Europe.
Sami Mnaymneh and Tony Tamer, Co-CEOs of H.I.G., commented: “We are delighted with the success of H.I.G. Europe Realty Partners II. The Fund will continue to build on our local, on the ground pan-European presence and is already 16% committed. We continue to find compelling opportunities to invest in the region.”
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $30 billion of equity 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, Stamford, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in growth investments, 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. is also a leading CLO manager, through its WhiteHorse family of vehicles, and 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.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.