DigitalBridge agreed to sell its legacy health care wellness infrastructure business for $3.2 billion to Highgate Capital Investments and Aurora Health Network. DigitalBridge, formerly known as Colony Capital, Inc., is a global digital infrastructure real estate investment trust (REIT). The portfolio includes more than 300 facilities across senior housing, skilled nursing, medical office buildings, and hospitals. It also includes the DigitalBridge’s equity interest in and management of its sponsored non-traded REIT, NorthStar Healthcare Income, Inc.
The deal represents the final step in DigitalBridge’s digital transformation, which has seen six non-digital, legacy segments monetized in the past two years. On June 22, 2021, the company rebranded from Colony Capital to DigitalBridge. The new name is intended to reflect the company’s significant business transformation from a diversified REIT to focus exclusively on the digital infrastructure sector. In 2019, Colony Capital had acquired Digital Bridge, an early innovator in digital infrastructure. The DigitalBridge team manages a $35 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders; these assets include cell towers, data centers, fiber, small cells, and edge infrastructure.
The sale of the legacy wellness segment is anticipated to reduce organizational complexity, generate overhead savings, and allow DigitalBridge to solely focus on digital infrastructure. The sale also increases company liquidity. The total consideration includes $316 million of net value to DigitalBridge (comprised of $226 million in cash and a $90 million five-year seller note) and the assumption of $2.6 billion in consolidated investment-level debt and $294 million of subsidiary-level debt.
Highgate is a real estate investment and hospitality management company with over $15 billion of assets under management. 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.
After the transaction closes the former DigitalBridge wellness segment facilities will be managed by Aurora Health Network. Aurora is a health care-focused investment firm that manages high-performing facilities throughout the United States.
This was reported by DigitalBridge Group, Inc. on September 8, 2021.
Contact information: Severin White, Managing Director, Head of Public Investor Relations, DigitalBridge Group, Inc., 750 Park Of Commerce Drive, Suite 210, Boca Raton, FL 33487; 561-570-4644; Email: email@example.com; Website: https://www.digitalbridge.com/