MPT Announces £1.5 Billion Acquisition of 30 UK Hospital Facilities
December 23, 2019 – Medical Properties Trust, Inc. (NYSE: MPW) announced agreements to acquire the real estate of 30 acute care hospital facilities located throughout the United Kingdom for approximately £1.5 billion, or approximately $2.0 billion. The facilities are leased to affiliates of BMI Healthcare (“BMI”), the largest private operator of acute hospitals in the UK.
In a related transaction, affiliates of Circle Health (“Circle”) are to acquire BMI and assume operations of its 52 facilities in the UK. Circle, an award winning operator of UK acute hospitals and successful MPT tenant, has committed to a multi-million pound program of investment in facility infrastructure, technology and people as part of the transaction.
MPT expects the transaction with BMI to close in the first quarter of 2020 and the lease arrangement is expected to provide a GAAP-basis yield of 8.9%.
“These hospitals represent a unique collection of facilities that are critical to the delivery of acute health services across the United Kingdom,” said Edward K. Aldag, Jr., MPT’s Chairman, President and CEO. “We are confident in the growing opportunities for private hospital operators in UK healthcare. We look forward to advancing our relationship with our UK operators in contributing to improved facility efficiency, quality of care and health outcomes for all hospital patients throughout the United Kingdom."