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.