A partnership between Medical Properties Trust (MPT) and European real estate investment manager Praemia REIM has secured a €702.5m financing facility from a consortium of global institutional, insurance and pension investors.
The 50:50 joint venture formed in 2018 has refinanced its debt with the 10-year non-amortising debt secured by a portfolio of German rehabilitation hospitals operated by MEDIAN.
The companies said most of the new secured loan is expected to fund the repayment of a €655m secured loan that was originally arranged when the joint venture was formed.
Edward K Aldag Jr MPT’s chairman, president and CEO, said: “Given the tremendous market demand for MPT’s hospital real estate from sophisticated institutional investors, we continue to benefit from access to low-cost capital.
“This transaction, along with others recently executed, reinforces the value of $15bn in hospital real estate around the world, the importance of our CPI-linked rent escalators as a natural hedge against inflation, and our confidence in the balance sheet flexibility available to us moving forward.”
Ronan Bodere, managing director of Praemia REIM Luxembourg, said: “This transaction demonstrates the long-term appeal of high-quality healthcare infrastructure in Europe.
“We are proud to co-own a portfolio that combines operational excellence, tenant resilience, and strong societal impact. This refinancing also confirms our ability to deliver sustainable returns for our investors across cycles.”
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