BIRMINGHAM, AL – Medical Properties Trust Inc. has entered into definitive agreements to acquire five South Florida general acute hospitals from Tenet Healthcare for $900 million. In conjunction with the sale, Medical Properties Trust will leaseback the facilities to Steward Health Care.
The hospitals will be leased under Medical Properties Trust's master lease agreement with Steward Health Care, which is expected to extend the lease term to expire in 2041, leaving a five-year extension option remaining.
The sale-leaseback transactions are expected to close in the second half of 2021, subject to customary closing conditions.
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"We are excited to own these essential community hospitals in areas with positive demographic trends at a very attractive yield," states Edward K. Aldag Jr., Medical Properties Trust chairman, president and CEO. "Furthermore, we have a great deal of confidence in Dr. Ralph de la Torre and the Steward team and believe that their physician-led operating model will further enhance the level of care each facility has long been providing to its local population."
Medical Properties Trust intends to initially fund the total cash consideration with cash on hand, in addition to using funds from the closing of binding property sales, proceeds from loan repayments and funds from other anticipated capital recycling transactions projected to value a total of more than $1 billion.
The pricing of the collective transactions is expected to provide a cost of equity capital to fund the Florida sale-leaseback transaction and other announced investments, including Medical Properties Trust's recent agreement to acquire 18 inpatient behavioral hospital facilities.
Medical Properties Trust's year-to-date investment total now exceeds $3.4 billion.
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
