Medical Properties Trust Closes $2B in Hospital Deals
The REIT has committed to $3.4 billion in acquisitions for the year.
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BIRMINGHAM, AL—Medical Properties Trust has completed the acquisition of real estate interests in eight UK hospitals operated by Ramsay Health Care and 16 hospitals operated by Prospect Medical Holdings for a total of $2 billion.
The Ramsay Health transaction, which closed on August 16, was first announced in July. Medical Properties Trust and Secure Income REIT partnered to acquire freehold interests in eight private hospitals in England in the $434 million transaction. Ramsay Health Care, headquartered in Sydney, Australia, is the guarantor of the leases. It operates 480 healthcare facilities across 11 countries and is the fifth largest private hospital operator in the world.
On August 23, Medical Properties Trust closed its $1.55 billion deal with Prospect Medical Holdings, which is headquartered in Los Angeles. The company owns 20 hospitals with over 3,790 licensed beds in Southern California, Connecticut, New Jersey, Pennsylvania, Rhode Island and South Central Texas. It also owns a network of more than 165 primary and specialty clinics.
The REIT started out the year with an initial 2019 acquisitions guidance for $1 billion. It increased that guidance in February to $2.5 billion. More recently it has announced that it has committed to $3.4 billion of its pipeline.
The $3.4 billion is made up of $1.55 billion for Prospect Medical Holdings, $145 million for Saint Luke’s, $440 million for the portfolio of Ramsay hospitals, $900 million for Healthscope, $237 million for Infracore, $45 million for BMI, $45 million for Aevis, the parent company of Swiss medical network, and $33 million of investments in properties for existing operators, according to comments made by CEO Ed Aldag during the REIT’s recent earnings call.