H.I.G. Capital acquires controlling stake in German real estate developer TGD

H.I.G. Capital, a global alternative investment firm managing $67 billion in assets, has announced its affiliate’s acquisition of a controlling stake in The Grounds Real Estate Development AG (TGD). This move was facilitated through a subscription in a rights issue, marking a significant milestone for both companies.

TGD, a Berlin-based real estate developer founded in 2007, is known for its diversified residential property portfolio. The company manages standing assets, new developments, and a substantial land bank across the Greater Berlin Area. TGD has built a reputation for delivering high-quality residential properties tailored to Berlin’s dynamic housing demands.

With H.I.G.’s backing, TGD plans to expand its operations, optimize its offerings, and position itself to address Berlin’s acute housing shortage. The investment also aims to enable TGD to capitalize on strategic acquisition opportunities in the competitive residential market.

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, emphasized the firm’s enthusiasm for the partnership, stating that the investment grants exceptional access to the German residential market, allowing them to pursue value-add opportunities during a critical market phase.

Stelios Theodosiou, also a Managing Director at H.I.G. Realty in Europe, highlighted the firm’s confidence in the German residential sector’s resilience and long-term growth potential. He expressed eagerness to collaborate with TGD’s management to realize their shared vision for sustainable market expansion.

This acquisition underscores H.I.G. Capital’s strategic focus on real estate investments across Europe, particularly in markets with high growth potential like Germany. By combining H.I.G.’s investment expertise with TGD’s market knowledge, the partnership seeks to enhance housing solutions in Berlin and create value for stakeholders.