BrightSpire Capital, Inc. (Formerly Colony Credit Real Estate) Announces Sale of Portfolio of Development and Non-Accrual Investments for $223 Million
Portfolio Sale Projected to be Substantially in Line with Company’s Book Value
The Co-Invest Portfolio Sale resolves 5 (of 6) legacy co-invest assets owned alongside
The Co-Invest Portfolio Sale advances key objectives of the Company, including:
Exits Several Historical Developmentand/or Non-Accrual Assets – Co-Invest Portfolio Sale includes (i) the four co-investments subject to the Company’s “5-Investment Preferred Financing”, which includes both Dublin, Irelanddevelopment loans and two other U.S.mixed-use and single family development loans, and (ii) a residual hotel loan equity participation interest in Austin, Texas(Loan 64 on the table of loans reported by the Company), each as described in further detail in the Company’s 10-Q for the quarterly period ended March 31, 2021;
- Portfolio Simplification – Reduces exposure to larger scale development investments, including two in non-US markets;
Preservation of Book Value –
$223 millionin gross proceeds, resolved substantially in line with the assets combined GAAP book value as of March 31, 2021; and
Reduce Leverage – Proceeds from the Co-Invest Portfolio Sale targeted to payoff the “5-Investment Preferred Financing,” a COVID-19 related financing secured in
June 2020for balance sheet protective purposes.
“We look forward to continuing to work with the Fortress team to effectuate this transaction which is another step toward simplifying our business by rebalancing our portfolio and reducing exposure to certain investment profiles that are no longer core to our strategy. We remain focused on delivering current and predictable earnings primarily through exposure to senior mortgages,” said
“This is another clear win-win transaction, following on our June agreement to become
The Co-Invest Portfolio Sale is subject to certain purchase price adjustments (including for contributions, distributions and currency adjustments during the executory period), customary closing conditions and third-party consents.
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 conditions to the completion of the Co-Invest Portfolio Sale may not be satisfied, or the approvals required for the transaction may not be obtained on the terms expected, on the anticipated schedule, or at all; the impact of timing, other conditions or adjustments on the ability to preserve book value; the timing or ability of the Company to payoff off the 5-Investment Preferred Financing following the Co-Invest Portfolio Sale and net effect on Company book value for such events (including the extent of purchase price adjustments); 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
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