BERLIN—US-based Medical Properties Trust, Inc.says it has entered into definitive agreements to acquire and leaseback substantially all of the real estate assets of privately-heldMEDIAN Kliniken Group, the largest private provider of post-acuteand acute rehabilitation services in Germany. The deal is worthabout $900 million (€705M).

|

“This transaction further demonstrates MPT's success inleveraging its deep understanding of the healthcare markets andcontinues its track record of completing highly accretiveinvestments across diverse geographies,” said EdwardAldag, chairman, president and CEO of Medical PropertiesTrust. “This is an important transaction because it significantlyincreases our asset base to approximately $4.5billion, and builds on our recent entry into theattractive Western European market. The acquisition of the MEDIANreal estate is a very compelling and unique opportunity for MPT andis fully aligned with our strategy to diversify our market-leadinghospital portfolio across geography, operator and facilitytype.”

|

Under the terms of the sale/leaseback agreement, MPT willacquire from and leaseback to MEDIAN the real estate assets of 38rehabilitation and 2 acute care hospitals throughout Germanypursuant to a 27 year master lease that providesan initial lease rate well within MPT's 8.0% to 11.0% target range,with annual escalators at the greater of one percent or 70% ofGerman CPI.

|

In addition to the MEDIAN acquisitions, MPT also announcedMonday approximately $155 million in recent,previously undisclosed commitments and investments. These hospitalassets include three acute facilities in theUnited States (located in Alabama, Texas and WestVirginia) with an aggregate value of approximately $74 million andthree additional German rehabilitation hospitalswith an aggregate value of approximately $81 million (based onagreed pricing of €64 million) to be leased to RHM Kliniken, acurrent tenant of the Company's assets in Germany, and owned byaffiliates of Waterland Private Equity, the expected futuremajority owner of MEDIAN. With these transactions, MPT hascommitted to investments totaling approximately $1.4 billionyear-to-date, the highest amount of investments the Company hasmade in a single year in its history.

|

Consistent with MPT's standard agreements, the new U.S. hospitalfacilities, as well as those included in the new commitment withRHM Kliniken, will be leased back to the operators under long-termnet leases with a weighted average initial cash lease rate ofapproximately 9.3%.

|

MPT expects to consummate the MEDIAN transaction through atwo-step process. All transactions are expected to be completedduring the first quarter of 2015.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.