Medical Properties Trust Pays $237M for Majority Stake in Swiss Hospital Portfolio
Switzerland-based Baloise Group, which entered into the share-capital of Infracore in December 2018, increased its participation in the firm from 20% to 35%. In the two transactions, Aevis Victoria SA sold 61% of its interest in Infracore SA and retained a 19% stake in the firm.
BIRMINGHAM, AL—Locally-based Medical Properties Trust, Inc. has acquired a 46% interest in Swiss healthcare real estate company Infracore SA from Aevis Victoria SA for $236.5 million.
Switzerland-based Baloise Group, which entered into the share-capital of Infracore in December 2018, increased its participation in the firm from 20% to 35%. In the two transactions, Aevis Victoria SA sold 61% of its interest in Infracore SA and retained a 19% stake in the firm.
Infracore maintains a portfolio of 13 state-of-the-art acute care hospital campuses located throughout Switzerland and operated primarily by the Swiss Medical Network, a wholly-owned Aevis subsidiary. MPT used cash on hand in Europe to fund the investment.
Infracore’s real estate is valued at approximately $900 million, making Medical Properties Trust’s share valued at approximately $410 million and makes MPT the largest shareholder in Infracore.
“This investment in Infracore presents MPT a unique opportunity to enter the Swiss healthcare market with the second largest private hospital operator in the country, and we are excited to establish a new long-term relationship with Swiss Medical Network,” says Edward K. Aldag, Jr., MPT’s chairman, president, and CEO. “Moreover, the investment provides near-term opportunities for MPT to grow our investment in Infracore as Infracore continues to strengthen its platform in Switzerland.”
The Infracore hospital campuses total approximately 1.5 million square feet with an average 23-year remaining lease term. MPT’s investment reflects an initial return of approximately 5.0% and will be adjusted annually by 100% of Swiss inflation. Infracore presently has debt approximating 50% of its real estate value with a weighted average interest rate of 1.7%, the company states.