Medical Properties Trust Announces $434 Million Acquisition of Eight Private Hospitals in England

On July 23, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Medical Properties Trust, Inc. (“MPT”) announced the acquisition of eight private hospitals located in England for approximately $434 million. Through this acquisition, MPT will hold the freehold title to these eight hospitals. Under the existing net lease agreements, the remaining lease term for these hospitals is approximately 18 years, including fixed annual market rent escalations.

The transaction achieved a GAAP lease rate generally consistent with MPT’s global cap rate, generating an attractive investment spread, and is expected to close in the third quarter of 2019, subject to customary closing conditions. The Company expects to initially finance the transaction through available cash balances and borrowings under its existing credit facilities.

Furthermore, leading global healthcare provider Ramsay Health Care has also announced its participation in the MPT. Ramsay Health Care (hereinafter referred to as “Ramsay”) is the fifth-largest private hospital operator globally and one of the leading operators in Western Europe. Headquartered in Sydney, Australia, Ramsay Health Care operates 480 healthcare facilities across 11 countries, including 34 acute care hospitals and day surgery centers in the United Kingdom.

MPT successfully acquired BMI Harbour Hospital in Poole, UK, earlier this year and established a partnership with Circle Health, which currently comprises two acute hospitals and one rehabilitation hospital. Including the Ramsay hospitals currently under acquisition by MPT, the company will operate 12 hospital facilities in the UK, with a total of 463 licensed beds. The Ramsay hospitals have a combined total of 255 licensed beds.

Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer of MPT, stated: “The acquisition of these excellent hospitals demonstrates that our strong global channel presents significant short-term opportunities.” “This transaction is particularly successful as it establishes an important new relationship between MPT and Ramsay Health Care. Ramsay Health Care is a dynamic, leading healthcare operator with an extensive global portfolio. We are delighted to forge this long-term partnership, especially as we strive to enhance geographic diversification; approximately half of the hospitals included in the total purchase price are located in Greater London, a high-demand region,” said Ramsay Health Care.

Medical Properties Trust is a real estate investment trust (REIT) focused on acquiring and developing net-leased hospital facilities. The company’s financing model facilitates acquisitions and recapitalizations, enabling hospital operators to unlock the value of their real estate assets to fund facility improvements, technology upgrades, and other operational investments.

(Compiled by: Xu Wenjuan)