DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge” or the
“Company”) today announced it has completed the previously
announced sale of its Wellness Infrastructure business (the
“Wellness Sale”) to an investment group comprised of two leading
real estate investment firms, Highgate and Aurora Health
Network.
The $3.2 billion Wellness Sale includes total net value to
DigitalBridge of $316 million (comprised of $161 million in cash
and a $155 million 5-year seller’s note), the assumption of $2.6
billion in consolidated investment-level debt, and $294 million of
subsidiary-level debt.
“We are pleased to close this complex transaction on our
original timetable thanks to the hard work of Rich Welch and his
team, who led this division through an unprecedented pandemic,”
said Jacky Wu, Chief Financial Officer of DigitalBridge. “This
transaction marks the completion of our ‘diversified to digital’
transformation and further strengthens our corporate capitalization
as we focus on continuing to build our industry-leading digital
infrastructure platform.”
“Highgate is excited to conclude another significant transaction
with DigitalBridge,” said Mahmood Khimji, Co-Founder and Managing
Principal of Highgate. “This investment marks a meaningful
commitment by Highgate to the diversified healthcare real estate
space. Highgate looks forward to partnering with Aurora and the
many valued employees across this business and bringing Highgate’s
existing operating capabilities to bear in executing on the
business plan and delivering high-fidelity services.”
“We are proud to have smoothly and successfully closed this
transaction,” said Joel Landau, Co-Founder and Managing Director of
Aurora. “We look forward to leveraging our many deep relationships
across the healthcare space as we join with Highgate in managing
this portfolio in accordance with our core principles, focusing on
clinical excellence and quality of care to achieve optimal
results.”
To steward this diverse portfolio, Highgate and Aurora have
partnered to launch Santerre Health Investors, a new
healthcare-focused investment and operating platform. Santerre will
invest in healthcare-centric businesses by leveraging Highgate’s
investment and operational management expertise and Aurora’s
extensive healthcare real estate capabilities. Santerre welcomes
DigitalBridge’s 35-person team that has and will continue to
oversee the assets being acquired by Highgate and Aurora through
the Wellness Sale and will lead the platform’s future growth in the
space.
As previously announced on September 8, 2021, the realized value
generated by the Wellness Sale is in line with the net equity
carrying value of the underlying assets as of June 30, 2021 when
accounting for the transfer of the $294 million in subsidiary-level
debt included in the Wellness Sale.
The parties also mutually agreed to a customary transition
services agreement in which the Company will continue to provide
certain services for a period of 180 days following closing.
Additional details regarding the terms of Wellness Sale will be
contained in a Current Report on Form 8-K to be filed by the
Company with the U.S. Securities and Exchange Commission.
Barclays served as financial advisor to DigitalBridge in
connection with the transaction and Sullivan & Cromwell LLP
served as legal counsel. Deutsche Bank Securities Inc. served as
financial advisor to Highgate and Aurora and Latham & Watkins
LLP served as legal counsel.
About DigitalBridge
DigitalBridge (NYSE: DBRG) is a leading global digital
infrastructure REIT. With a heritage of over 25 years investing in
and operating businesses across the digital ecosystem including
cell towers, data centers, fiber, small cells, and edge
infrastructure, the DigitalBridge team manages a $45 billion
portfolio of digital infrastructure assets on behalf of its limited
partners and shareholders. Headquartered in Boca Raton,
DigitalBridge has key offices in New York, Los Angeles, London, and
Singapore. For more information, visit: www.digitalbridge.com
About Highgate
Highgate is a leading real estate investment and hospitality
management company with over $15 billion of assets under
management. Highgate has a 30-year track record as an investment
manager, operating partner, and developer for REITs, private equity
firms, sovereign wealth funds, high net worth individuals, and
other institutional investors. With a particular focus in
hospitality real estate, Highgate’s portfolio includes over 350
owned and/or managed hotels comprising over 65,000 rooms across the
United States, Europe, Latin America, and the Caribbean. Highgate’s
capabilities extend to adjacent real estate verticals including
multifamily, short-term rentals, and diversified healthcare real
estate, as well as investments in real estate-linked securities,
technology platforms, and hospitality-related operating businesses.
Highgate maintains corporate offices in New York, Dallas, London,
Miami, Seattle, and Waikiki. For more information, visit:
www.highgate.com
About Aurora
Aurora Health Network is a premier healthcare-focused investment
firm managing high-performing facilities throughout the US. Through
a strategic, long-term outlook, Aurora develops lasting value for
both investors and the healthcare establishments within its
portfolio. With an acquisition focus on skilled nursing, assisted
living, rehabilitation, subacute, transitional, and other classes
of healthcare facilities, Aurora partners with operators who are an
established part of their community and who prioritize clinical
excellence and resident care.
About Santerre
Santerre Health Investors is a new venture between Highgate and
Aurora Health Network that invests in healthcare-centric real
estate and operating businesses across the United States, the
United Kingdom, and Continental Europe. For more information,
visit: www.SanterreHealth.com
Cautionary Statement regarding Forward-Looking
Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases which are predictions
of or indicate future events or trends and which do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond our control, and may cause
actual results to differ significantly from those expressed in any
forward-looking statement. Factors that might cause such a
difference include, without limitation, whether the Company will
realize any of the anticipated benefits from the Wellness Sale and
other risks and uncertainties, including those detailed in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2021 and its other reports filed from time to time with the
U.S. Securities and Exchange Commission. All forward-looking
statements reflect the Company’s good faith beliefs, assumptions
and expectations, but they are not guarantees of future
performance. The Company cautions investors not to unduly rely on
any forward-looking statements. The forward-looking statements
speak only as of the date of this press release. DigitalBridge is
under no duty to update any of these forward-looking statements
after the date of this press release, nor to conform prior
statements to actual results or revised expectations, and
DigitalBridge does not intend to do so.
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version on businesswire.com: https://www.businesswire.com/news/home/20220228006090/en/
Investors: Severin White Managing Director, Head of Public
Investor Relations (212) 547-2777
severin.white@digitalbridge.com
Media: Joele Frank, Wilkinson Brimmer Katcher Aura Reinhard /
Jon Keehner (212) 355.4449 dbrg-jf@joelefrank.com
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