H.I.G. Capital launches €1bn German residential platform

By Courtney Rivera 05/08/2026 3 min read 22 views

H.I.G. Capital has launched Highground Living, a €1 billion German residential platform headquartered in Berlin, marking a focused effort to address the country’s chronic housing shortage.

Consolidation and New Investment in Key Cities

The new vehicle brings together H.I.G.’s existing Berlin assets under a single institutional structure, but the move goes beyond a simple rebrand. In parallel with the consolidation, the firm is allocating fresh capital to acquire a €450 million portfolio of high‑quality rental properties in Leipzig and Dresden. This gives Highground an operational footprint across three of Germany’s strongest urban markets from day one.

According to the company, the platform combines institutional ownership with a local operating team that aims to improve asset performance while scaling housing delivery nationwide. The strategy reflects a belief that Germany’s structural housing shortages, resilient demand and limited new supply will sustain growth opportunities for investors.

Strategic Statements from H.I.G. Leadership

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty Europe, described the launch as a “strategic milestone” for the firm’s European residential strategy. He said, “Highground marks an important milestone for H.I.G. Realty’s European residential strategy. We have identified German residential as one of our high‑conviction markets and have built a scalable platform to capitalise on the current market opportunity.”

Stelios Theodosiou, Managing Director at H.I.G. Realty in Europe, added that the platform is designed to generate long‑term value. “Highground provides an institutional operating platform capable of creating long‑term value through active asset management and disciplined portfolio growth. We look forward to supporting the management team as the business grows across Germany’s residential market.”

The initiative sits within H.I.G.’s broader global operation, which manages €65.4 billion in capital across offices in Miami, Hamburg, London, Luxembourg, Madrid, Milan and Paris. Since its founding in 1993, the firm has overseen more than 400 companies worldwide, with a current portfolio of over 100 firms generating combined sales of €46.2 billion. This scale provides Highground with substantial institutional backing as it pursues further acquisitions.

Investors and developers with exposure to Berlin, Leipzig or Dresden should expect increased competition for residential assets and development land, as the initiative signals intent to expand both its portfolio and operating capabilities over time.

From a broader perspective, the creation of a dedicated German residential vehicle highlights a growing trend among global private‑equity firms to target stable, income‑generating assets in markets where supply constraints are acute. In Germany, rental demand has remained robust despite economic fluctuations, and the limited pipeline of new construction makes existing stock valuable. By consolidating assets and deploying new capital, firms like H.I.G. can achieve economies of scale that smaller owners might struggle to replicate, potentially leading to more professional management and higher returns for investors.

Highground’s immediate focus will be on integrating its Berlin holdings, executing the Leipzig‑Dresden acquisition, and building out its operating platform. The company has not disclosed a timeline for additional purchases, but the leadership’s comments suggest a long‑term view that could shape the housing environment in these cities for years to come.

Highground aims to reshape housing in Germany.