Fortress Investment Group Completes DigitalBridge and BrightSpire Deals
Posted on 12/29/2021
Disclosed on December 22, 2021, Fortress Investment Group LLC and its affiliates have completed previously announced transactions with DigitalBridge Group Inc. (NYSE: DBRG, “DigitalBridge”) and BrightSpire Capital Inc. (NYSE: BRSP, “BrightSpire”), with total consideration of approximately US$ 730 million.
Under terms of the DigitalBridge transaction, affiliates of Fortress are now General Partner and Manager to DigitalBridge’s DCVR series of funds, co-investment vehicles and other non-digital real estate positions, representing approximately US$ 2.7 billion in combined assets under management at the time of the agreement’s announcement. The assets are diversified by investment type (senior debt, junior debt and equity), underlying asset class (office, hotels, land, multifamily), geography (U.S., Ireland, Spain, UK and France) and underlying industry (real estate, securities, energy). Fortress provided a “one-stop solution” to DigitalBridge as it sought to resolve virtually all of its remaining “Other Equity and Debt” assets in a single transaction, while assuring continued responsible stewardship for DCVR investors by a leading global investment manager.
BrightSpire Deal
Under terms of the BrightSpire acquisition, Fortress has acquired five historical development and/or non-accrual assets for gross proceeds of US$ 223 million. The Co-Invest Portfolio Sale resolves 5 (of 6) legacy co-invest assets owned alongside Colony Capital, Inc. (now known as DigitalBridge Group.
BrightSpire Capital, Inc. (NYSE: BRSP), formerly Colony Credit Real Estate, Inc. (NYSE: CLNY), is one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments and net leased properties predominantly in the United States. CRE debt investments primarily consist of first mortgage loans, which we expect to be the primary investment strategy. BrightSpire Capital is organized as a Maryland corporation and taxed as a REIT for U.S. federal income tax purposes.
