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DigitalBridge Closes Sale of Other Equity & Debt Portfolio to Fortress Investment Group
Rhea-AI Impact
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Rhea-AI Summary
DigitalBridge Group, Inc. (NYSE: DBRG) has completed the sale of its Other Equity & Debt portfolio to Fortress Investment Group for a net value of $506.8 million. This includes $443.4 million in cash received at closing and $32.2 million in future payments. The transaction aligns with the company's goal to leverage funds for future digital investments. Additionally, one asset valued at $28.0 million was removed from the sale, to be marketed separately in 2022.
Positive
Generated $506.8 million from the sale, including $443.4 million in cash.
Allows for reinvestment into future digital infrastructure ventures.
Negative
Retained one asset worth $28.0 million that may delay liquidity.
Potential risks associated with realizing the anticipated benefits from the sale.
BOCA RATON, Fla.--(BUSINESS WIRE)--
DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge” or the “Company”) today announced it has completed the previously announced sale of the bulk of its Other Equity & Debt (OED) portfolio of real estate assets to Fortress Investment Group LLC (“Fortress”), a leading, diversified global investment manager.
The total net value DigitalBridge realized from the sale is $506.8 million, including $443.4 million in cash received at closing, $31.2 million of net cash already received principally for asset monetizations realized between the sale announcement and closing, and $32.2 million of future payments for assets expected to be transferred in early 2022.
“We are pleased to generate over half a billion dollars of value to fuel future digital investments, drive growth and create shareholder value,” said Jacky Wu, Chief Financial Officer of DigitalBridge. “I want to thank our partners at Fortress and the team at DigitalBridge, whose hard work enabled us to deliver on our commitment to finalize this complex transaction by the end of the year.”
“We have worked with the DigitalBridge team extensively over the years and could not be more pleased with their partnership in closing this highly complex and large-scale transaction on such an ambitious timetable,” said Fortress Managing Director Noah Shore. “This business and its underlying assets fit perfectly with Fortress’ experience and expertise, and we are thrilled to welcome an exceptional group of new limited partners to Fortress.”
Prior to closing, DigitalBridge and Fortress agreed to remove one asset, with a carrying value of $28.0 million, from the transaction. This asset will be retained by the Company and is expected to be sold pursuant to a separate sale process in 2022. The parties also mutually agreed to a customary transition services agreement in which the Company will continue to provide certain services to Fortress for a period of six months following closing.
As previously announced on June 7, 2021, the realized value generated by the OED sale is directly in line with the net equity carrying value of the underlying assets as of March 31, 2021.
About DigitalBridge
DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure REIT. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages a $40 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, DigitalBridge has key offices in Los Angeles, New York, London, and Singapore.
About Fortress
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $53.9 billion of assets under management as of June 30, 2021, on behalf of approximately 1,800 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
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 might cause such a difference include, without limitation, the Company’s ability to obtain necessary consents and transfer certain assets from the OED portfolio in 2022, whether the Company will realize any of the anticipated benefits from the sale of the OED portfolio and other risks and uncertainties, including those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 and its other reports filed from time to time with the U.S. Securities and Exchange Commission. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. The Company cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. DigitalBridge is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and DigitalBridge does not intend to do so.
