BIRMINGHAM, AL—Locally based Medical Properties Trust is investing in a healthcare services company based in Los Angeles through a $1.55 billion sale leaseback. The company, Prospect Medical Holdings, is leasing back its real estate assets in California, Connecticut and Pennsylvania, but is leaving out its properties in Rhode Island, New Jersey, and Texas. The portfolio includes 14 acute care hospitals and 2 behavioral health hospital facilities.
Prospect will continue to own and operate all its hospitals and ancillary operations in California, Connecticut, Pennsylvania, Texas and New Jersey as well as its Rhode Island joint venture. The transaction is expected to close in the second half of 2019, subject to customary closing conditions. Prospect will use the funds to retire the company's existing term-loan debt.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
