DigitalBridge Group, Inc. (NYSE: DBRG) yesterday announced it has reached an agreement to sell its Wellness Infrastructure business to an investment group comprised of two real estate investment firms, Highgate Capital Investments and Aurora Health Network, in a transaction valued at $3.2 billion. The portfolio includes more than 300 facilities across senior housing, skilled nursing, medical office buildings, and hospitals. 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.
“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,” said Marc Ganzi, President and CEO of DigitalBridge.
The Wellness sale, upon completion, advances several of the company’s stated strategic goals:
- ‘Finish the Mission’ – the sale represents the final step in the company’s digital transformation, which has seen six non-digital, legacy segments monetized in the past two years, in line with net carrying values and ahead of schedule by over a year.
- Simplification – the sale of the final legacy segment reduces organizational complexity, generates overhead savings, and allows for a sole focus on digital.
- Enhance Liquidity, Reduce Leverage – the sale increases corporate liquidity to over $1.5 billion on a pro forma basis, while at the same time reducing consolidated investment-level debt by $2.6 billion and subsidiary-level debt by an additional $294 million.
“We are excited to announce another significant transaction with DigitalBridge,” said Mahmood Khimji, Co-Founder and Managing Principal of Highgate. “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.”
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