BOCA RATON, Fla.–(BUSINESS WIRE)–DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge” or the “Company”) today announced that it has completed the previously announced sale of its wellness infrastructure business (the “Sale of Wellbeing -be”) to an investment group made up of two major real estate investment firms, Highgate and Aurora Health Network.
The $3.2 billion wellness sale includes a total net worth for DigitalBridge of $316 million (including $161 million in cash and a 5-year seller’s rating of $155 million), taking supported $2.6 billion in consolidated investment-level debt and $294 million in subsidiary-level indebtedness.
“We are thrilled to complete this complex transaction on our original schedule thanks to the hard work of Rich Welch and his team, who have 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 business capitalization as we focus on continuing to build our state-of-the-art digital infrastructure platform. industry.”
“Highgate is delighted to complete another significant transaction with DigitalBridge,” said Mahmood Khimji, co-founder and CEO of Highgate. “This investment marks a significant commitment by Highgate to the diverse healthcare real estate space. Highgate looks forward to partnering with Aurora and the company’s many valued employees and leveraging Highgate’s existing operational capabilities to execute the business plan and deliver high fidelity services.
“We are proud to have closed this transaction smoothly and successfully,” said Joel Landau, co-founder and CEO of Aurora. “We look forward to leveraging our many deep healthcare relationships as we join Highgate to manage this portfolio in accordance with our core principles, focusing on clinical excellence and quality of care to achieve optimal results.”
To manage this diverse portfolio, Highgate and Aurora have partnered to launch Santerre Health Investors, a new investment and operating platform focused on healthcare. 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 overseen and will continue to oversee the assets acquired by Highgate and Aurora as part of 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 from the sale of wellness is in line with the net book value of the underlying assets as of June 30, 2021 upon accounting for the transfer of $294 million of debt at the level subsidiaries. included in the wellness sale.
The parties have 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 the wellness sale will be contained in a current report on Form 8-K to be filed by the company with the United States Securities and Exchange Commission.
Barclays served as financial advisor to DigitalBridge on the transaction and Sullivan & Cromwell LLP served as legal advisor. Deutsche Bank Securities Inc. served as financial advisor to Highgate and Aurora and Latham & Watkins LLP served as legal advisor.
About Digital Bridge
DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure REIT. With a legacy of more than 25 years of investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells and edge infrastructure, the he DigitalBridge team manages a $45 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Based in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London and Singapore. For more information, visit: www.digitalbridge.com
Highgate is a leading property investment and hotel management company with over $15 billion in assets under management. Highgate has 30 years of experience 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 on hotel real estate, Highgate’s portfolio includes over 350 owned and/or managed hotels comprising over 65,000 rooms in the United States, Europe, Latin America and the Caribbean. Highgate’s capabilities extend into adjacent vertical real estate sectors, including multi-family properties, short-term rentals and diversified healthcare real estate, as well as investments in real estate-related securities, technology platforms and operating activities related to the hotel industry. Highgate has offices in New York, Dallas, London, Miami, Seattle and Waikiki. For more information, visit: www.highgate.com
Aurora Health Network is a leading healthcare-focused investment firm managing high-performing facilities across the United States. Through a long-term strategic perspective, Aurora develops sustainable value for both investors and the healthcare institutions in its portfolio. With a focus on acquiring skilled nursing, assisted living, rehabilitation, subacute, transitional and other facilities, Aurora partners with operators who are an integral part of their community and who prioritize clinical excellence and resident care.
Santerre Health Investors is a new venture between Highgate and Aurora Health Network that invests in healthcare-centric real estate and operations in the US, UK and continental Europe. For more information, visit: www.SanterreHealth.com
Caution 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 regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking words such as “may”, “will”, “should”, “expect”, “intend”, “anticipate”, “anticipate “, “believes”, “estimates”, “predicts” or “potential” or the negative of these words and expressions or similar words or expressions which are predictions 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 materially from those expressed in any forward-looking statement. factors that could cause such a difference include, but are not limited to, whether the company will realize any of the anticipated benefits of the wellness sale and other risks and uncertainties, including co including those detailed in the company’s annual report on Form 10-K for the fiscal year ended December 31, 2021 and its other reports filed from time to time with the United States Securities and Exchange Commission. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but are not guarantees of future performance. The Company cautions investors not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this press release. DigitalBridge is under no obligation to update any such forward-looking statements after the date of this press release, or to conform any prior statements to actual results or revised expectations, and DigitalBridge does not intend to do so.