BrightSpire Capital, Inc. Closes Previously Announced $223 Million Co-Invest Portfolio Sale to Fortress
BrightSpire Capital (NYSE: BRSP) announced the completion of a sale involving 5 historical development and/or non-accrual assets to Fortress Investment Group for $223 million. The net proceeds received by the company were approximately $198 million. This transaction simplifies BrightSpire’s portfolio and resolves several legacy assets, enhancing its focus on senior mortgages. The sale aligns with the company’s goal to preserve book value, achieving proceeds in line with the assets' GAAP book value as of March 31, 2021.
- Successful Asset Sale: Completed the sale of assets for $223 million, netting approximately $198 million.
- Portfolio Simplification: Reduced exposure to larger scale development investments.
- Preservation of Book Value: Sale proceeds aligned with the GAAP book value of assets.
- None.
“This portfolio sale accelerates our business plan to simplify the portfolio and effectively concludes BrightSpire’s portfolio rotation. We will continue to build a diversified portfolio consisting of primarily senior mortgages generating current and predictable earnings. We want to thank the team at Fortress for their commitment to the transaction and working together throughout the process to bring it to a successful conclusion,” said
The Co-Invest Portfolio Sale completed certain key objectives of the Company, including:
-
Resolve Several Historical Development and/or Non-Accrual Assets – Co-Invest Portfolio Sale included (i) the four co-investments subject to the Company’s “5-Investment Preferred Financing,” which includes bothDublin, Ireland development loans and two otherU.S. mixed-use and single family development loans, and (ii) a residual hotel loan equity participation interest inAustin, Texas . The Co-Invest Portfolio Sale resolved 5 (of 6) legacy co-invest assets owned alongsideDigitalBridge Group, Inc. (NYSE: DBRG), previously known asColony Capital, Inc. OnDecember 20, 2021 ,Colony Capital completed its portfolio sale with Fortress that included its joint venture interests in such five underlying investments;
- Portfolio Simplification – Reduced exposure to larger scale development investments, including two in non-US markets;
-
Preservation of Book Value –
in gross proceeds, resolved substantially in line with the assets’ combined GAAP book value as of$223 million March 31, 2021 .
About
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward- looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward- looking statement. Factors that could cause actual results to differ materially from BrightSpire Capital’s expectations include, but are not limited to, the preservation of and/or net effect on Company book value for such events; the ability to simplify the portfolio and/or realize efficiencies, as well as achieve anticipated strategic and financial benefits of the internalization; and uncertainties regarding the ongoing impact of the novel coronavirus (COVID-19). The foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20211220005980/en/
Investor Relations
Addo Investor Relations
310-829-5400
Source:
FAQ
What was the value of the asset sale by BrightSpire Capital on December 20, 2021?
How much did BrightSpire Capital net from the asset sale?
What assets were included in BrightSpire Capital's sale to Fortress Investment Group?
How did the asset sale impact BrightSpire Capital's investment strategy?