Medical Properties Trust Completes Joint Venture of 71 German Hospitals
September 05 2018 - 8:30AM
Business Wire
Largest European Healthcare Transaction in
2018
Medical Properties Trust, Inc. (“MPT” or the “Company”)
(NYSE:MPW), today announced that it has completed the previously
announced joint venture among certain of its European affiliates
and affiliates of Primonial Group (“Primonial”). As previously
disclosed, the joint venture agreements establish a value of the 71
assets of €1.63 billion, reflecting an unlevered internal rate of
return exceeding 15% since MPT’s acquisition of the assets. Total
proceeds to MPT, including its portion of secured debt, are
approximately €1.14 billion. The company expects to use such
proceeds to repay balances under its revolving credit facility,
make investments in additional U.S. and European hospital assets
and for other corporate purposes.
“This partnership with Primonial demonstrates MPT’s unique
expertise and ability to create long term value for our
shareholders, reduce our cost of capital and provide permanent
capital for reinvestment to create additional highly attractive
hospital real estate portfolios,” said Edward K. Aldag, Jr., MPT’s
Chairman, President and CEO. “Already we are highly focused on
reinvestment of proceeds to acquire hospital real estate leased to
high-quality operators in Europe, the U.S. and elsewhere.”
MPT also disclosed that the joint venture has entered into a
€655 million secured financing arrangement with a consortium of
lenders, including Societe Generale S.A. Frankfurt Branch as
Mandated Lead Arranger and affiliates of AXA. Provisions of the
financing agreement include a term of seven years and a swapped
fixed rate of approximately 2.3%.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate
investment trust formed to capitalize on the changing trends in
healthcare delivery by acquiring and developing net-leased
healthcare facilities. MPT’s financing model helps facilitate
acquisitions and recapitalizations and allows operators of
hospitals and other healthcare facilities to unlock the value of
their real estate assets to fund facility improvements, technology
upgrades and other investments in operations. Facilities include
acute care hospitals, inpatient rehabilitation hospitals, long-term
acute care hospitals, and other medical and surgical facilities.
For more information, please visit the Company’s website at
www.medicalpropertiestrust.com.
About Primonial Group
Primonial Group, specialized in all aspects of wealth
management, selects, combines and offers comprehensive solutions
for wealth management professionals and their clients. It is
supported by a large number of specialists in residential property
investments and real estate funds, life insurance and annuities,
structured products and asset management, and has assets under
management (managed or advised) of €23.44 billion. For more
information, please visit the Company’s website at
www.primonial.com.
The statements in this press release that are forward looking
are based on current expectations and actual results or future
events may differ materially. Words such as "expects," "believes,"
"anticipates," "intends," "will," "should" and variations of such
words and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause the actual results of the Company or future events to differ
materially from those expressed in or underlying such
forward-looking statements, including without limitation: the
satisfaction of all conditions to, and the timely closing (if at
all) of pending transactions; the amount of acquisitions of
healthcare real estate, if any; results from potential sales and
joint venture arrangements, if any; capital markets conditions;
estimated leverage metrics; the repayment of debt arrangements;
statements concerning the additional income to the Company as a
result of ownership interests in certain hospital operations and
the timing of such income; the payment of future dividends, if any;
completion of additional debt arrangements, and additional
investments; national and international economic, business, real
estate and other market conditions; the competitive environment in
which the Company operates; the execution of the Company's business
plan; financing risks; the Company's ability to maintain its status
as a REIT for income tax purposes; acquisition and development
risks; potential environmental and other liabilities; and other
factors affecting the real estate industry generally or healthcare
real estate in particular. For further discussion of the factors
that could affect outcomes, please refer to the "Risk factors"
section of the Company's Annual Report on Form 10-K for the year
ended December 31, 2017 and as updated by the Company’s
subsequently filed Quarterly Reports on Form 10-Q and other SEC
filings. Except as otherwise required by the federal securities
laws, the Company undertakes no obligation to update the
information in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180905005522/en/
Medical Properties Trust, Inc.Tim Berryman, 205-969-3755Director
– Investor Relationstberryman@medicalpropertiestrust.com
Medical Properties (NYSE:MPW)
Historical Stock Chart
From Aug 2024 to Sep 2024
Medical Properties (NYSE:MPW)
Historical Stock Chart
From Sep 2023 to Sep 2024