• February 12, 2025

Last-Mile Delivery Assets Emerge as New Real Estate Crown Jewels

The humble warehouse is getting a serious upgrade. H.I.G. Capital’s latest acquisition of four French logistics facilities signals how yesterday’s storage spaces are becoming tomorrow’s prime real estate, as the $66 billion investment firm joins the intensifying competition for strategic delivery assets.

The deal, which includes facilities in Toulouse, Bordeaux, Caen, and Rennes, captures a critical moment in retail’s evolution. With Amazon, XPO, and Kuehne+Nagel as anchor tenants, these properties represent more than just industrial space – they’re the new foundation of digital retail success.

The math is simple but brutal: lose a delivery race, lose a customer. Recent data shows 25% of consumers abandon retailers whose deliveries take more than three and a half days, transforming rapid fulfillment from a nice-to-have into a survival imperative.

“These markets present clear opportunities for continued growth,” says Jérôme Fouillé, managing director at H.I.G. Realty Europe. That growth is driven by a perfect storm of surging e-commerce demand and scarce prime logistics space.

France’s unique geography turns these facilities into strategic gold mines. Each location serves both dense urban populations demanding instant delivery and broader rural regions hungry for e-commerce access. It’s a dual-purpose capability that has investors racing to secure similar assets across Europe.

For H.I.G., which has backed over 400 companies since 1993, the acquisition represents more than just another deal. It’s a strategic bet on retail’s digital future, adding to a portfolio that already includes more than 100 companies generating $53 billion in combined sales.

The message is clear: in today’s retail landscape, the path to profit increasingly runs through strategically placed delivery hubs. As digital commerce continues its relentless expansion, these once-overlooked assets are emerging as the kingmakers of retail success.