HighBrook Investors: Company Profile

Background

Founded in 2010, HighBrook Investors is a real estate private equity firm specializing in acquiring and actively managing properties across select growth markets in Europe and the United States. The firm focuses on identifying deep value and special situation opportunities, aiming to unlock intrinsic property value through strategic investments and management. HighBrook's mission is to deliver superior risk-adjusted returns by capitalizing on market inefficiencies and emerging macro trends. With offices in London, West Palm Beach, New York, Amsterdam, and Luxembourg, the firm leverages its global presence to navigate diverse real estate markets effectively.

Key Strategic Focus

HighBrook Investors employs a value-oriented investment strategy, targeting properties that require repositioning or restructuring. The firm's core objectives include:

• Acquiring Well-Located Assets Below Intrinsic Value: Focusing on properties with multiple avenues for value realization.

• Adaptability to Market Conditions: Utilizing a nimble approach to identify opportunities amidst changing market dynamics.

• Off-Market Sourcing: Leveraging a proprietary network to access investments not widely available.

• Institutional Risk Management: Combining entrepreneurial agility with conservative operating procedures.

The firm specializes in various property types, including industrial, residential, and creative office spaces, with a particular emphasis on urban logistics driven by the surge in e-commerce demand. HighBrook's primary markets encompass Western Europe—specifically the Netherlands, Germany, and Denmark—and select regions in the United States.

Financials and Funding

Since its inception, HighBrook Investors has successfully raised and managed multiple funds:

• HighBrook Income Property Fund I: $232 million

• HighBrook Income Property Fund II: $308 million

• HighBrook Property Fund III: $427 million

• HighBrook Property Fund IV: $632 million

In addition to these funds, the firm has managed €308 million in co-investments and sidecars. The most recent fund, Fund IV, closed in November 2022, significantly oversubscribed above its target, reflecting strong investor confidence. Investors include leading endowments, foundations, public pension funds, family offices, and wealth managers. The capital is intended for deep value and special situation investments, particularly in industrial, residential, and creative office assets across Western Europe and the U.S.

Pipeline Development

HighBrook's investment portfolio showcases a diverse range of properties at various stages of development and management:

• Dutch CityLink Logistics Portfolios (Randstad, Netherlands): An aggregation of over 100 infill industrial assets exceeding 700,000 square meters, focusing on last-mile logistics driven by e-commerce growth. Acquired between November 2020 and present; partially realized in July 2022.

• Northern VA Industrial Portfolio (Northern Virginia, USA): A 343,784 square foot portfolio of four properties, acquired in June 2022, strategically located to serve industrial-type services within the Washington, D.C. metro area.

• Porchlight East Hill (Nashville, TN, USA): A collection of 63 newly constructed single-family and townhome units totaling 121,023 square feet, repositioned into a luxury rental community. Acquired in April 2024.

• A-House (Copenhagen, Denmark): A 23,463 square meter multifamily residential building with high-end amenities, achieving DGNB Platinum certification for sustainable design and operations. Acquired in November 2020.

Technological Platform and Innovation

HighBrook Investors distinguishes itself through:

• Proprietary Investment Approach: Combining entrepreneurial agility with institutional risk management to identify and capitalize on market inefficiencies.

• Data-Driven Decision Making: Utilizing comprehensive market analysis and local insights to inform investment strategies.

• Sustainability Initiatives: Implementing sustainable practices, as evidenced by the DGNB Platinum certification of A-House in Copenhagen.

Leadership Team

HighBrook's leadership comprises seasoned professionals with extensive experience in real estate investment:

• Brian Carr: Co-Founder and Managing Partner, overseeing the firm's strategic direction and investment activities.

• David O’Connor: Co-Founder, instrumental in establishing HighBrook's investment philosophy and operational framework.

• Robert Giusti: Partner and Chief Investment Officer, leading European investment strategies and operations.

• Stephen Shaw: Partner, contributing to the firm's investment decisions and portfolio management.

Leadership Changes

In 2018, Robert Giusti was appointed Chief Investment Officer, reflecting his significant contributions to HighBrook's European investment initiatives.

Competitor Profile

Market Insights and Dynamics:

The real estate private equity sector is characterized by:

• Market Size and Growth Potential: Substantial capital inflows seeking value-add and opportunistic investments in both developed and emerging markets.

• Industry Trends: Increased focus on urban logistics, residential conversions, and sustainable building practices driven by evolving consumer behaviors and regulatory environments.

Competitor Analysis:

Key competitors include:

• AEW: A global real estate investment firm managing diverse property portfolios across various regions.

• Fortress Investment Group: A diversified global investment manager with a significant focus on real estate assets.

• Castleforge: A UK-based real estate investment firm specializing in value-add opportunities.

These firms share a focus on value-add and opportunistic real estate investments, leveraging extensive market networks and capital resources to identify and execute on compelling opportunities.

Strategic Collaborations and Partnerships

HighBrook has engaged in significant partnerships to enhance its market position:

• CityLink: Established in 2022 in partnership with Proptimize, CityLink is a vertically integrated operating platform focusing on urban logistics real estate, managing over 123 assets across three countries.

• Foundry Commercial: In August 2021, HighBrook partnered with Foundry Commercial to acquire the Americas International Center, a 147,000-square-foot industrial park in Doral, Florida, enhancing its U.S. industrial portfolio.

Operational Insights

HighBrook's strategic considerations include:

• Market Positioning: Focusing on underperforming assets in prime locations to unlock value through active management and repositioning.

• Competitive Advantages: A nimble investment approach, deep market knowledge, and strong local partnerships enable HighBrook to source and execute off-market transactions effectively.

Strategic Opportunities and Future Directions

Looking ahead, HighBrook aims to:

• Expand Urban Logistics Portfolio: Continue capitalizing on the growth of e-commerce by investing in last-mile logistics facilities.

• Enhance Sustainability Practices: Further integrate sustainable design and operations across its portfolio to meet evolving regulatory standards and tenant preferences.

• Strengthen European Presence: Leverage existing partnerships and market expertise to identify new investment opportunities in key European markets.

Contact Information

• Website: HighBrook Investors

• LinkedIn: HighBrook Investors LinkedIn

HighBrook Investors continues to demonstrate a robust investment strategy, leveraging its expertise and partnerships to navigate complex real estate markets and deliver value to its investors.