Global digital infrastructure REIT (real estate investment trust) DigitalBridge Group, Inc. recently announced it will sell its Wellness Infrastructure business to real estate investment firms Highgate Capital Investments and Aurora Health Network in a deal valued at $3.2 billion. The total consideration includes $316 million of net value to DigitalBridge and the assumption of $2.6 billion in consolidated investment-level debt and $294 million of subsidiary-level debt.
The Wellness Sale will help advance several of DigitalBridge’s strategic goals, the company said. Those goals include completing its digital transformation, reduce organizational complexity, which will in turn generate overhead savings and increase the company’s corporate liquidity to more than $1.5 billion on a pro forma basis, while also reducing its consolidated investment-level debt by $2.6 billion and subsidiary-level debt by an additional $294 million.
“We’re thrilled to announce an agreement to sell our Wellness Infrastructure business ahead of schedule and in-line with our carrying values,” DigitalBridge President and CEO Marc Ganzi said in a statement. “Having completed our digital transformation in less than two years, this final step will allow us to emerge as the pure-play, fast-growing digital infrastructure REIT we envisioned from day one. I want to thank Rich Welch and his team, who have done an incredible job managing our Wellness business through the pandemic, strategically positioning our team to generate positive equity value for our shareholders and remain focused on growing our digital infrastructure platform.”
“We are excited to announce another significant transaction with DigitalBridge,” Mahmood Khimji, Co-Founder and Managing Principal of Highgate said in a statement. “In partnership with Aurora, we look forward to continuing to operate and effectively steward these high-quality healthcare facilities, serving patients and communities across the United States and the United Kingdom.”
The Wellness Infrastructure businesses comprises a portfolio of more than 300 facilities across senior housing, skilled nursing, medical office buildings and hospitals. It also includes DigitalBridge’s equity interest in and management of its sponsored non-traded REIT, NorthStar Healthcare Income, Inc. DigitalBridge currently expects the sale to be completed by early 2022, subject to closing conditions and third-party approvals.
“We are pleased to enter into this transaction, Aurora Co-Founder and Managing Director Joel Landau said in a statement. “We look forward to a productive and value-enhancing partnership with Highgate in accordance with our core principles, which combine a focus on clinical excellence and quality of care alongside our deep knowledge of the market.”
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