Medical Properties Trust Acquires 8 UK Hospitals for $434M
The company will own a total of 12 UK hospital facilities upon the transaction, which is expected to close in the third quarter of 2019.
BIRMINGHAM, AL – Medical Properties Trust Inc. (MPT) has entered into an agreement with Secure Income REIT to acquire freehold interests in eight private hospitals in a $434 million transaction.
Ramsay Health Care currently operates the eight hospitals located in England and is the guarantor of the leases. The global health care provider will join MPT operators upon the transaction.
The Ramsay hospitals, comprising 255 licensed beds, are leased in accordance to in-place net leases with an 18-year remaining lease term, and include annual-fixed and period market-based escalations. The transaction secures a GAAP lease rate consistent with overall global cap rates for MPT’s recent transactions.
MPT plans to initially finance the transaction from its existing credit facility’s cash balances and borrowings. The transaction is expected to close in the third quarter of 2019.
Earlier this year, MPT acquired BMI Harbour Hospital in Poole, England, as well as two acute hospitals and a rehabilitation hospital through Circle Health; further expanding its footprint in the UK. MPT will own 12 UK hospital facilities totaling 463 licensed beds upon the transaction this year.
Ramsay Health Care headquartered in Sydney, Australia, operates 480 healthcare facilities across 11 countries. It is the fifth largest private hospital operator in the world.
Medical Properties Trust Inc. (MPT) is a self-advised real estate investment trust that focuses on acquiring and developing net-leased hospital facilities. The company aims to facilitate hospital acquisitions and recapitalizations through its financing model.