Prime Highlights
- H.I.G. Capital has completed a $1.6 billion recapitalization to strengthen and expand its hospitality and logistics platforms.
- The deal signals strong investor confidence in European tourism and logistics growth sectors.
Key Facts
- H.I.G. Capital manages around $74 billion in assets globally, making it one of the leading alternative investment firms worldwide.
- The recapitalization supports expansion of Ella Resorts’ hotel portfolio and OB Streem’s logistics infrastructure.
Background
Global investment firm H.I.G. Capital has completed a $1.6 billion recapitalization of two of its European platforms, Ella Resorts and OB Streem, in a dual refinancing deal backed by a consortium of European banks. The move is designed to bolster financial structures and expand rapidly across Europe.
A group of European banks led by Bank of Piraeus financed the transaction, which delivers new funds to support growth projects in both the hospitality and logistics sectors that are vital for the region’s economic development.
The hospitality platform of the company, Ella Resorts, operates 4,400 rooms, which extends its services to Mediterranean locations while planning to expand its operations in Italy, Greece and Spain until it reaches 10,000 rooms.
Meanwhile, OB Streem operates more than 400000 square meters of logistics facilities, which include warehousing, cold storage and freight operations to establish its presence in major European trade routes.
The executives announced that the recapitalization will create a new development phase for both platforms, which will allow them to upgrade their resort facilities, expand their infrastructure and make new acquisitions. The transaction is also an acknowledgement of the lender community’s confidence in the long-term prospects of both businesses.
Industry analysts view the move as part of a broader trend in private equity, which shows that firms now use recapitalizations to generate value and obtain funds for expansion without having to sell their current assets.
For H.I.G., which manages approximately $74 billion in assets globally, this transaction strengthens its plan to expand real estate-backed businesses that operate in high-demand markets.
