North Cypress Med Center Nets IRR of 17%
The $148 million sale resulted in an approximate $100 million gain for Medical Properties Trust which plans to use proceeds to make additional investments in US hospital real estate and elsewhere.
CYPRESS, TX—Medical Properties Trust Inc. has completed the sale of North Cypress Medical Center, a 139-bed acute care hospital located near Houston to Hospital Corporation of America. The $148 million sale resulted in an approximate $100 million gain for Medical Properties Trust and an unlevered internal rate of return of more than 17% since the completion of development in 2007. The company expects to use proceeds to make additional investments in US hospital real estate and for other corporate purposes.
“North Cypress Medical Center was founded by local physicians who wanted to create a sophisticated, upscale experience for patients in the Houston community,” said Edward K. Aldag Jr., Medical Properties Trust’s chairman, president and CEO. “We were pleased to develop this magnificent facility for Dr. Robert Behar, the hospital’s founder, chairman and CEO, beginning in 2005, the same year that Medical Properties Trust became a publicly traded company. Through investments such as North Cypress Medical Properties Trust has generated shareholder returns far exceeding benchmark REIT indices and also the S&P 500 over the past 10 years and since our IPO.”