H.I.G. Capital, a global alternative investment firm with $59 billion of capital under management, and an affiliate made an investment in The Grounds Real Estate Development AG, a German real estate investment company listed on the Düsseldorf alternative stock exchange. Proceeds will be used to fund capital expenditures of The Grounds’ existing projects.
Headquartered in Berlin, The Grounds specializes in German residential properties in major metropolitan areas. As part of the transaction, The Grounds’ major shareholders, currently holding a combined 73% stake in the company, have provided H.I.G. with the right to participate in future rights issuances.
“We believe that the German residential market is at an inflection point and should offer numerous investment opportunities and are excited to partner with The Grounds and its strong management team to invest in value-add opportunities with a focus on the Berlin residential market,” Riccardo Dallolio, managing director and head of H.I.G. Realty in Europe, said.
“The collaboration with a well-capitalized and experienced strategic investment partner like H.I.G. Capital creates new opportunities for The Grounds, especially in the current market environment,” Jacopo Mingazzini, CEO of The Grounds, said. “This is true both for the development of ongoing projects and for the company’s further expansion. We very much look forward to the partnership.”
