A global alternative investment firm has launched a major new residential property business focused on the German market.

H.I.G. Capital, which manages $75 billion in capital, confirmed that one of its affiliates has set up Highground Living. The newly created company will be based in Berlin and holds a total portfolio value of €1 billion.

The platform has been established by merging the existing assets and operations of H.I.G. across the Berlin metropolitan area. Alongside this consolidation, the company has completed a fresh acquisition of a €450 million portfolio consisting of high quality homes in Leipzig and Dresden.

Company executives stated that the business model pairs institutional ownership with an experienced local management team. The firm intends to scale up its operations and portfolio size gradually. The strategy relies on strong underlying market factors in Germany, including persistent housing shortages, steady tenant demand and low numbers of new building projects. H.I.G. expects these long term economic conditions to provide a secure environment for future asset growth.

“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 capitalize on the current market opportunity,” said Riccardo Dallolio, Managing Director and Head of H.I.G. Realty Europe in London.

The corporate strategy will focus on upgrading the performance of existing properties while adding new units in strong urban economies across the country.

Stelios Theodosiou, Managing Director at H.I.G. Realty in Europe, commented: “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.”