US REIT Medical Properties is to acquire and lease back almost all of the real estate assets owned by German privately held healthcare group Median Kliniken.
US REIT Medical Properties is to acquire and lease back almost all of the real estate assets owned by German privately held healthcare group Median Kliniken.
Median, the largest private provider of post-acute and acute rehabilitation services in Germany, is divesting 40 rehabilitation hospitals in Germany for around €705 mln ($900 mln).
Under the terms of the sale/leaseback agreement, Median will lease back the assets on a 27-year master lease agreement.
´This transaction further demonstrates Medical Properties’ success in leveraging its deep understanding of the healthcare markets and continues its track record of completing highly accretive investments across diverse geographies,´ said Edward K. Aldag, chairman and CEO of Medical Properties Trust.
He added: 'This is an important transaction because it significantly increases our asset base to approximately $4.5 bn, and builds on our recent entry into the attractive Western European market.'
In addition, Medical Properties has also acquired a further three German rehabilitation hospitals operated by RHM Kliniken for €64 mln. The vendor is Netherlands-based Waterland Private Equity, the parent company of Median.
The transactions are expected to be completed during the first quarter of 2015.
Birmingham, Alabama-based Medical Properties said the acquisitions build on its strategy to increase diversification, scale and presence in international markets. 'As one of the strongest global economies, with low unemployment rates and universal healthcare coverage and payment policies, Germany remains a dynamic market in which to invest,' the company said in a statement.
