DigitalBridge is selling a portfolio of senior housing, medical office buildings and hospitals to Highgate Capital Investments and Aurora Health Network in a $3.2bn (€2.7bn) deal.
The NYSE-listed global digital infrastructure real estate investment trust (REIT) said the disposal of its Wellness Infrastructure business represents the final step in DigitalBridge’s digital transformation, which has seen six non-digital, legacy segments monetised in the past two years.
The Wellness business comprises a portfolio of more than 300 facilities across senior housing, skilled nursing, medical office buildings and hospitals. The business also includes DigitalBridge’s equity interest in and management of its sponsored non-traded REIT, NorthStar Healthcare Income.
DigitalBridge said the total consideration includes $316m of net value to DigitalBridge and the assumption of $2.6bn in consolidated investment-level debt and $294mn of subsidiary-level debt
Marc Ganzi, president and CEO of DigitalBridge, said: “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.”
Mahmood Khimji, co-founder and managing principal of Highgate Capital Investments, said: “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 UK.”
Joel Landau, co-founder and managing director of Aurora Health Network, said: “We look forward to a productive and value-enhancing partnership with Highgate in accordance with our core principles, which combine a focus on clinical excellence and quality of care alongside our deep knowledge of the market.”
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