US-based private equity investment firm HIG Capital has closed its first dedicated European real estate fund after raising €673 mln, nearly 35% above its €500 mln target.
The fund, HIG Europe Realty Partners II, will invest in small-cap properties with value-add potential across multiple asset classes but with a focus on offices, logistics and residential. The fund is prioritising more liquid markets including the Nordics, France, Germany, Italy and the UK.
HIG Capital has completed 47 transactions since it began investing in European real estate in 2013, most recently buying three offices in Norway with a total floor space of 100,000 m2. The new fund is already 16% committed to investments.
Riccardo Dallolio, managing director and head of HIG Europe Realty Partners, said: 'This closing validates HIG Europe Realty's differentiated strategy. The fund will invest in Europe across the capital structure and asset classes with a particular focus on its target market of small and mid-cap real estate opportunities.'