MPT Agrees to Acquire 8 British Hospitals, Bringing Total Investments Year-to-Date To a Record $3.4 Billion

July 22, 2019 – Medical Properties Trust’s commitment to acquire eight private hospitals located throughout England from Secure Income REIT (LSE: SIR) for approximately $434 million brings the company’s total year-to-date investments to a record $3.4 billion.

“Our acquisition of these outstanding hospitals, which is expected to close in the third quarter, demonstrates the strong near-term opportunities embedded in our robust global pipeline,” said Edward K. Aldag, Jr., MPT’s Chairman, President and CEO.

“This transaction is particularly powerful as it initiates an important new relationship between MPT and Ramsay Health Care, the fifth largest operator of private hospitals in the world and one of the leading operators in Western Europe,” Aldag noted. 

Headquartered in Sydney, Australia, Ramsay operates 480 healthcare facilities across 11 countries, including 34 acute care hospitals and outpatient centers in the UK. The transaction further expands MPT’s UK footprint, building upon the company’s acquisition of BMI Harbour Hospital in Poole, England in April, and the company’s relationship with Circle Health that has grown to include two acute hospitals and a rehabilitation hospital.

Including the Ramsay hospitals that the company is acquiring, Medical Properties Trust will own 12 hospitals across the UK.

“We are excited to establish this long-term relationship, with approximately 18 years remaining on the lease terms,” Aldag added. “This transaction enhances our geographic diversification, with hospitals representing about half of the total purchase price located in the highly-desirable Greater London area.”

The agreement to purchase the freehold interests of these eight British hospitals comes on the heels of MPT’s announcement on July 10th that it would acquire 14 acute care hospitals and two behavioral health facilities operated by Prospect Medical Holdings in California, Connecticut and Pennsylvania for $1.55 billion, as well as seven not-for-profit community hospitals operated by Saint Luke’s Health System in the Kansas City, Missouri metropolitan area for $145 million.

MPT: Expanding across the globe 

Also included in MPT’s $3.4 billion of year-to-date investments are:

  • The acquisitions of 11 Australian hospitals operated by Healthscope Ltd. on June 6th for approximately $858 million;
  • The purchase of a 46 percent stake in Swiss healthcare real estate company, Infracore SA, which currently owns 13 acute care campuses and two additional properties in Switzerland, on May 27th for approximately $236.5 million;
  • The purchase of a 4.9 percent stake in Aevis Victoria SA, which owns 19 percent of Infracore and 100 percent of Swiss Medical Network SA, Switzerland’s second-largest hospital operator, on June 28th for approximately $46 million, and
  • The purchase of a 150-bed acute care hospital located in Big Spring, Texas, in April for $26 million.

“We have not only achieved – but surpassed – our full year acquisition goal of $2.5 billion at just the half-way mark of the year,” said Aldag, “which further reinforces our reputation as the global leader in hospital real estate.”

All of the acquisitions will be immediately accretive to Medical Properties Trust’s Normalized Funds from Operators (“NFFO”) per share.

As a result, MPT’s preeminent global hospital real estate portfolio will grow to 333 properties and more than 37,500 licensed hospital beds. Company assets on a proforma basis are approximately $13 billion – up 37 percent since the end of 2018.

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