DigitalBridge Group, Inc. (NYSE: DBRG), announced on Wednesday that it will be selling its wellness infrastructure business, which includes 83 skilled nursing facilities and other health care assets, in a transaction valued at $3.2 billion.
The global infrastructure REIT, formerly known as Colony Capital, announced its sale to an investment group composed of two real estate investment firms, Highgate Capital Investments and Aurora Health Network.
New York City-based Aurora Health Network was co-founded by managing directors Joel Landau — chairman and founder of nursing home operator The Allure Group — and fellow health care operator Leo Friedman, CEO of Citadel Care Centers, according to its website.
Aurora Health Network was part of a joint venture announced earlier this year that saw 35 former Genesis assets sold for a total of $500 million. The joint venture included Aurora, Welltower Inc. (NYSE: WELL) and Peace Capital.
The real estate in the wellness infrastructure portfolio was previously valued at $3.3 billion and includes — as of May 2021 — a total of 83 skilled nursing facilities among a portfolio of more than 300 facilities across senior housing, skilled nursing, medical office buildings and hospitals.
The deal includes $316 million of net value to DigitalBridge consisting of $226 million in cash and a five-year, $90 million seller note.
The sale is the final step in the Boca Raton-based REIT’s digital transformation and 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 thrilled to announce an agreement to sell our wellness infrastructure business ahead of schedule and in-line with our carrying values,” Marc Ganzi, president and CEO of DigitalBridge, said in the press release. “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.”
The company currently expects the sale to be completed in early 2022, subject to closing conditions and third-party approvals.
“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,” Mahmood Khimji, co-founder and managing principal of Highgate, said in the press release.
Companies featured in this article:
Aurora Health Network, DigitalBridge Group, Highgate Capital Investments
