H.I.G. Capital is betting big on Europe’s last-mile delivery boom, scooping up four strategic logistics facilities in France as the private-equity firm moves to capitalize on surging e-commerce demand.
The $66 billion investment powerhouse announced Monday its acquisition of facilities in Toulouse, Bordeaux, Caen, and Rennes, all anchored by industry heavyweights Amazon, XPO, and Kuehne+Nagel. The deal, whose terms weren’t disclosed, positions H.I.G. to profit from retailers’ desperate hunt for delivery speed in an increasingly competitive digital marketplace.
The timing couldn’t be more critical. Recent market data shows that one in four shoppers will jump ship to competitors when deliveries take longer than three and a half days, forcing retailers to radically rethink their distribution networks. That pressure has transformed last-mile delivery facilities from conventional warehouses into prized assets that can make or break a retailer’s digital strategy.
“These markets show clear supply-demand imbalances,” said Jérôme Fouillé, managing director at H.I.G. Realty Europe. The firm is banking on continued rental growth as retailers compete for limited prime logistics space.
The French market offers unique appeal, combining dense city centers with sprawling rural regions. Success in both environments requires sophisticated delivery networks – exactly what H.I.G.’s new facilities promise to deliver. The properties’ strategic locations allow tenants to serve both urban customers demanding rapid delivery and rural populations traditionally underserved by e-commerce.
For H.I.G., which has invested in over 400 companies since its 1993 founding, the deal marks another milestone in its European expansion. The firm’s current portfolio spans more than 100 companies generating combined sales above $53 billion.
The acquisition signals a broader shift in real estate investing, as traditional property categories give way to specialized assets supporting the digital economy. As e-commerce continues its relentless growth, these last-mile facilities – once overlooked as simple warehouses – are emerging as the new crown jewels of retail infrastructure.