FLORENCE, AZ-Medical Properties Trust Inc. has inked an agreement with Visionary Health LLC to acquire Florence Hospital at Anthem, a 36-bed acute care and emergency room facility currently under construction.
The Birmingham, AL-based REIT will invest $30 million in the project including development funding and will achieve double-digit cash returns on it. The company’s Chairman, President and CEO Edward Aldag Jr. made the announcement during Medical Properties Trust’s third quarter earnings conference call.
Visionary Health has leased the facility back from Medical Properties Trust and will operate the facility. It scheduled to open in early 2012, according to Aldag.
Florence Hospital represents the first project between Medical Properties Trust and Gilbert, AZ-based Visionary Health, Aldag noted. “We believe this will be the first of several acquisitions with the group,” he said, adding that Visionary Health is an experienced operator of Gilbert Hospital, a four-year-old acute care facility in suburban Phoenix.
With the Florence Hospital investment, Medical Properties Trust is close to achieving its goal of investing $150 million in acquisitions and/or development projects in 2010. In Houston, for example, the REIT is investing roughly $45 million in the former River Oaks campus of Twelve Oaks Medical Center into River Oaks Medical Center.
During the third quarter, it began a $17 million redevelopment of the project. The redevelopment is expected to bring the facility into compliance with requirements of the Texas Department of Health for multiple health care providers in a single facility.
Medical Office Properties is currently negotiating with several prospective tenants that would result in occupancy of six of the eight floors as of completion of redevelopment, which is expected at the end of the third quarter 2011.
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