DigitalBridge to Sell Healthcare Holdings in $3.2B Deal
The portfolio includes more than 300 facilities across senior housing, skilled nursing, medical office buildings and hospitals.
DigitalBridge Group has sold the last of its legacy healthcare real estate holdings as part of its transformation to a digital infrastructure REIT. Namely, it has sold some 300 facilities across senior housing, skilled nursing, medical office buildings and hospitals in a deal valued at $3.2 billion to two real estate investment firms, Highgate Capital Investments and Aurora Health Network.
Alongside the 300 healthcare real estate facilities, DigitalBridge’s so-called Wellness Infrastructure business includes its equity interest in and management of its sponsored non-traded REIT, NorthStar Healthcare Income.
DigitalBridge’s net proceeds come to $316 million—comprising $226 million in cash and a $90 million 5-year seller note—and the buyers are assuming $2.6 billion in consolidated investment-level debt and $294 million of subsidiary-level debt.
“We are thrilled to announce an agreement to sell our Wellness Infrastructure business ahead of schedule and in-line with our carrying values. 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 company has sold or monetized six non-digital, legacy segments in the past two years. This latest sale increases its corporate liquidity to over $1.5 billion on a pro forma basis,
DigitalBridge expects the sale to be completed in early 2022, subject to closing conditions and third-party approvals.
Barclays served as financial advisor to DigitalBridge in connection with the transaction and Willkie Farr & Gallagher 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.