Medical Properties Trust has formed a JV with Primonial Group for a new property fund focusing on the health care sector. Medical Properties Trust, a hospital real estate finance company, will leave management of the real estate to Primonial while handing over a 50 percent share in a portfolio of 71 hospitals around Germany. An MPT affiliate will manage the hospitals under the transaction surrounding a portfolio valued at €1.6bn. Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust said that MPT “assembled this portfolio during the last few years in competition with other large U.S. REITs, sovereign wealth, private equity and other investors. “This transaction will validate MPT’s pioneering entry into European hospital real estate.” A 6% valuation of the portfolio’s 2017 rents means that MPT should gain €500m once the deal is closed. Total proceeds to MPT, including its portion of the secured debt, is estimated at €1.14bn.
Illustrative picture: MPT
