The milestone reflects sustained investment in residential property sectors benefiting from structural supply-demand imbalances in the British capital.
The portfolio now encompasses student housing developments, purpose-built rental apartments, and institutional-grade residential properties positioned across sought-after London neighborhoods. HIG Realty has assembled these assets through selective acquisitions and development projects targeting demographic groups facing limited housing options in traditional markets, partnering with specialist managers and operating partners to execute its strategy.
HIG Capital, founded in 1993 by Sami Mnaymneh and Tony Tamer, manages approximately $74 billion across equity, credit, and real estate strategies. The firm’s real estate division pursues value-added opportunities where operational improvements, repositioning, or development can enhance returns relative to stabilised properties trading at premium valuations.
“We are delighted to reach this landmark and to continue backing the ongoing evolution of London’s residential sector,” said Jérôme Fouillé, managing director at HIG Realty in Europe. “Our portfolio reflects our conviction in the strength of the capital’s fundamentals and our ability to deliver high-quality living environments that meet the needs of students and young professionals.”
Student Housing and Build-to-Rent Focus
Student accommodation represents a core component of HIG Realty’s London portfolio, addressing persistent shortages of purpose-built housing near major universities. Purpose-built student accommodation supplies only a fraction of required beds, forcing many students into conventional rental markets or distant locations.
Purpose-built student housing offers amenities including study spaces, social areas, and building management addressing specific needs of university populations. These facilities command premium rents compared to shared houses or converted apartments while delivering higher occupancy rates and operational efficiency for institutional owners.
Build-to-rent apartments constitute the portfolio’s second major category, targeting young professionals and households seeking rental housing with professional management and building amenities. Traditional London rental stock consists primarily of individual landlords owning single properties, creating inconsistent tenant experiences and limited recourse when issues arise.
Institutional build-to-rent developments offer longer-term tenancies, responsive management, and communal facilities including gyms, lounges, and outdoor spaces. These properties appeal to renters prioritising stability and service quality over homeownership, particularly professionals relocating to London or deferring property purchases due to deposit requirements.
HIG Realty’s portfolio spans multiple Central London locations, providing geographic diversification while maintaining focus on neighborhoods demonstrating strong rental demand fundamentals. The firm evaluates opportunities based on transportation connectivity, employment center proximity, and local amenities supporting target demographics.
London Housing Market Dynamics
Central London residential markets face structural supply constraints due to planning restrictions, development costs, and land scarcity limiting new construction. Housing completions consistently lag household formation and population growth, sustaining upward pressure on rents across both conventional and institutional residential sectors.
Student housing demand correlates with university enrollment trends, which have remained resilient despite broader economic uncertainties. International students represent substantial portions of enrollment at London universities, paying premium tuition and requiring housing throughout academic terms.
Build-to-rent demand reflects demographic shifts including delayed homeownership among younger cohorts, increased labor mobility requiring rental flexibility, and preferences for amenity-rich buildings offering lifestyle benefits beyond basic shelter. These trends support occupancy rates and rental growth for professionally managed properties.
HIG Realty’s £1 billion portfolio positions the firm among active institutional investors in London residential markets, though substantially smaller than dedicated residential specialists managing tens of billions across United Kingdom housing sectors. The portfolio size enables meaningful scale economies while maintaining focus on specific property types and locations.
Fouillé emphasised ongoing investment objectives. “We look forward to continuing to work with our partners to expand our footprint in this dynamic and essential market,” he said.
Investment Strategy and Market Positioning
HIG Realty pursues acquisitions offering value-add opportunities through operational improvements, tenant experience enhancements, or strategic repositioning. The firm’s approach emphasises active asset management rather than passive ownership of stabilised properties generating predictable cash flows.
Working with specialist managers and operating partners allows HIG Realty to leverage sector-specific expertise while maintaining investment oversight and capital allocation decisions. These partnerships prove particularly valuable in student accommodation and build-to-rent sectors where operational excellence significantly influences tenant satisfaction and financial performance.
Student housing and build-to-rent properties generate recurring revenue through rental income while offering potential for appreciation as London property values increase over extended holding periods. These characteristics align with institutional investor preferences for income-producing assets with inflation protection.
The portfolio expansion occurs amid broader institutional capital flows into residential real estate, driven by yield-seeking investors facing compressed returns in traditional commercial property sectors. Residential assets demonstrate different risk-return profiles than office or retail properties, providing diversification benefits within real estate portfolios.
HIG Realty operates across European markets beyond the United Kingdom, pursuing life sciences facilities, logistics properties, and other specialised real estate categories. The firm’s London residential focus represents one component of a diversified real estate investment strategy spanning multiple property types and geographies.
The £1 billion milestone reflects cumulative investments rather than a single large transaction, indicating patient capital deployment through selective acquisitions aligned with investment criteria. This approach contrasts with opportunistic strategies involving concentrated bets on individual large assets or development projects.
London’s residential rental markets continue attracting domestic and international investors despite economic uncertainties affecting broader United Kingdom property sectors. The capital’s global city status, employment opportunities, and cultural amenities sustain housing demand across income segments and demographic groups.