
Private Equity Continues Logistics Push: H.I.G. Capital Acquires French Last-Mile Portfolio
The race for prime last-mile delivery assets intensified this week as H.I.G. Capital acquired a portfolio of four French logistics facilities, highlighting private equity’s growing appetite for delivery infrastructure in key European markets.
Transaction Details
The Miami-based investment firm added facilities in Toulouse, Bordeaux, Caen, and Rennes to its European portfolio, securing long-term leases with major logistics operators Amazon, XPO, and Kuehne+Nagel. The deal strengthens H.I.G.’s presence in France’s increasingly competitive last-mile delivery market.
Industry Landscape
The acquisition underscores the growing strategic importance of last-mile delivery assets. Recent market research indicates retailers face mounting pressure to accelerate delivery times, with 25% of consumers ready to switch providers when deliveries exceed three and a half days. This consumer behavior has transformed last-mile capabilities from a competitive advantage to a survival necessity.
“The last-mile delivery segment has become a critical battleground,” says Jérôme Fouillé, Managing Director at H.I.G. Realty in Europe. “Markets with supply-demand imbalances, like those where these facilities are located, present particularly compelling opportunities for rental growth.”
Market Dynamics
The deal reflects several key market trends:
Urban-Rural Balance
The acquired facilities serve both metropolitan areas and regional markets, addressing distinct operational challenges. Urban locations contend with traffic congestion and limited expansion possibilities, while rural coverage requires efficient solutions for longer-distance deliveries.
Infrastructure Gap
Despite growing e-commerce demand, many European markets face shortages of modern last-mile delivery facilities. The gap between available infrastructure and market needs has attracted increased investment in the sector.
Tenant Quality
The presence of major logistics operators as tenants signals the portfolio’s strategic value. These operators require specific facility features to support rapid delivery capabilities, making well-positioned assets increasingly valuable.
Industry Challenges
The last-mile delivery sector faces several operational hurdles:
- Rising Costs: The final delivery leg typically represents the most expensive part of the shipping process
- Urban Congestion: Metropolitan delivery routes face growing traffic challenges
- Rural Coverage: Extended distances between delivery points impact operational efficiency
- Consumer Expectations: Demand for faster delivery times continues to increase
Investment Implications
The transaction adds to H.I.G.’s $66 billion portfolio and expands its European logistics footprint. While financial terms remained undisclosed, industry observers note that valuations for prime last-mile assets have remained resilient despite broader market uncertainties.
Looking Ahead
The acquisition signals continued institutional interest in logistics infrastructure, particularly assets supporting last-mile delivery operations. As e-commerce penetration grows and delivery expectations evolve, demand for strategically located facilities is likely to intensify.
Market watchers expect further consolidation in the sector as investors seek to build scaled platforms capable of serving evolving e-commerce needs. The focus on last-mile delivery assets specifically reflects their crucial role in meeting consumer demands for rapid delivery.
The success of such investments may ultimately depend on operators’ ability to solve the “last-mile problem” – delivering packages efficiently despite increasing urban congestion and rising consumer expectations. As traditional retail continues its transformation toward omnichannel delivery, the strategic value of well-positioned last-mile facilities could increase further.
Sector Outlook
Industry analysts anticipate continued investment in European logistics assets, particularly those supporting last-mile delivery operations. The sector’s resilience during recent market volatility has reinforced its appeal to institutional investors seeking stable, long-term returns backed by secular growth trends.
For logistics operators and retailers, access to modern last-mile facilities increasingly represents a key competitive differentiator. As consumer expectations for delivery speed continue to rise, the strategic importance of these assets is likely to grow further.