“The healthcare transactional market is extremely active, with demand for lower to mid-cap targets greatly outweighing the inventory of sellers.”
Andre Ulloa, M&A Healthcare Advisors
by Danielle Brown | McKnight’s Long-Term Care News
Florida-based real estate investment trust DigitalBridge Group has agreed to sell its wellness infrastructure business, which includes more than 140 skilled nursing and senior housing facilities, in a $3.2 billion deal, the company announced Wednesday.
DigitalBridge will sell the assets to an investment group composed of two real estate investment firms, Highgate Capital Investments and Aurora Health Network. The wellness portfolio is composed of 316 properties, including 83 skilled nursing and 65 senior housing facilities, according to filings with the Securities and Exchange Commission.
Under the agreement, DigitalBridge will get a $316 million of net value comprising $226 million in cash and a $90 million five-year seller note. Highgate and Aurora will assume $2.6 billion in consolidated investment-level debt and $294 million of subsidiary-level debt.
DigitalBridge added the agreement allows the company to increase its corporate liquidity to over $1.5 billion on a pro forma basis, while also reducing its debt.
The sale is expected to be completed in early 2022.