Medical Properties Trust has reached an agreement to sell its Australian real estate investments operated by Healthscope to affiliates of HMC Capital.

The Healthscope portfolio includes 11 Australian hospitals and was sold for approximately $800 million. Total consideration for the Healthscope portfolio is based in part on a lease capitalization rate approximating 5.7%.

In a report on the transaction, Green Street said while the forward NOI cap rate is in line with its initial estimates, the pricing on the hospitals is "significantly better" than anticipated. "Further analysis of the deal is needed, but a 50 bps reduction in MPW's average nominal cap rate, from the high-7% down to low-7% range, would not be unreasonable," said report authors John Pawlowski, Michael Stroyeck and Emily Meckler.