November 6, 2019
Birmingham-based real estate investment firm Medical Properties Trust (MPT) has entered into an agreement with affiliates of LifePoint Health to acquire the real estate assets of 10 acute care hospitals in six U.S. states for $700 million. The facilities will then be leased back to LifePoint under the agreement.
The initial term of the lease is 20 years with two five-year extension options. The transaction is expected to close by Q1 2020.
Upon closing of the transaction, MPT’s portfolio will include total gross assets of nearly $14 billion, representing approximately 40,000 beds in 34 U.S. states and in Germany, the United Kingdom, Switzerland, Italy, Spain and Australia. The location of the facilities sold was not disclosed.
“This immediately and strongly accretive acquisition of well-run facilities from sophisticated operators and owners demonstrates the expanding market for hospital real estate,” said Edward Aldag, Jr., president and CEO at MPT. “Importantly, the transaction further solidifies our relationship with LifePoint, and is a strong indicator that interest in MPT’s sale and leaseback structure continues to grow not only in the U.S. but globally.”
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