Highgate and Aurora’s $3.2 Billion Acquisition of Wellness Infrastructure

Latham & Watkins represented Highgate Capital Investment and Aurora Health Network in the transaction, while Willkie Farr & Gallagher represented DigitalBridge.

DigitalBridge Group, Inc., a leading global digital infrastructure REIT, has reached an agreement to sell its Wellness Infrastructure business to an investment group comprised of two leading real estate investment firms, Highgate Capital Investments (Highgate) and Aurora Health Network in a transaction valued at US$3.2 billion. The total consideration includes US$316 million of net value to DigitalBridge (comprised of US$226 million in cash and a US$90 million 5-year seller note) and the assumption of US$2.6 billion in consolidated investment-level debt and US$294 million of subsidiary-level debt.

DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure REIT. With a heritage of over 25 years of 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 $35 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders.

Highgate is a leading 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.

Aurora Health Network is a premier healthcare-focused investment firm managing high-performing facilities throughout the US. Through a strategic, long-term outlook, Aurora develops lasting value for both investors and the healthcare establishments within its portfolio.

Latham & Watkins represented Highgate Capital Investment and Aurora Health Network in the transaction, with a corporate team led by Chicago partners Gary Axelrod and Jonathan Solomon with associates Megan Staub, Henna Jalal, and Sarah Loiselle. Advice was also provided on tax matters by Los Angeles partner Pardis Zomorodi; on finance and real estate matters by Chicago partner Rachel Bates and London partner Quentin Gwyer with associates Ana De Santiago Ayon, Cristian Kelly, Euna Park, Danni Davies, Daniel Robot, Whitley Johnson, and Ben Rodger; and on employee benefit matters by Los Angeles Partner David Taub with associate Megan Ampe.

The Willkie deal team was led by partners Adam Turteltaub, Michael Brandt, Daniel Backer and Guy Inbar and senior counsel Henry Cohn.

Involved fees earner: Megan Ampe – Latham & Watkins; Gary Axelrod – Latham & Watkins; Rachel Bates – Latham & Watkins; Danni Davies – Latham & Watkins; Ana De Santiago Ayon – Latham & Watkins; Quentin Gwyer – Latham & Watkins; Henna Jalal – Latham & Watkins; Whitley Johnson – Latham & Watkins; Cristian Kelly – Latham & Watkins; Sarah Loiselle – Latham & Watkins; Euna Park – Latham & Watkins; Daniel Robot – Latham & Watkins; Ben Rodger – Latham & Watkins; Jonathan Solomon – Latham & Watkins; Megan Staub – Latham & Watkins; David Taub – Latham & Watkins; Pardis Zomorodi – Latham & Watkins; Daniel Backer – Willkie Farr & Gallagher; Michael Brandt – Willkie Farr & Gallagher; Henry Cohn – Willkie Farr & Gallagher; Guy Inbar – Willkie Farr & Gallagher; Adam Turteltaub – Willkie Farr & Gallagher;

Law Firms: Latham & Watkins; Willkie Farr & Gallagher;

Clients: Aurora Health Network; DigitalBridge; Highgate Capital Investments;

Author: Martina Bellini