Medical Properties Trust (MPT) has expanded its UK footprint with the acquisition of eight healthcare assets worth £347m (€386.7m) from Secure Income REIT.
Secure Income REIT, which manages a £2.3bn property portfolio, said it sold the portfolio of eight of its nineteen private hospitals let to Ramsay Health Care to the US specialist healthcare real estate investment trust (REIT).
The eight hospitals sold are Ashtead, Berkshire Independent, Euxton Hall, Mount Stuart, North Downs, Renacres, Rowley and Winfield.
Earlier this year, MPT acquired BMI Harbour Hospital, an acute care hospital located in Poole, for $45.4m (€41m).
Including the Ramsay hospitals that MPT is acquiring, which have a total of 255 licensed beds, the company will now own 12 hospital facilities across the UK collectively representing 463 licensed beds.
Edward K Aldag, MPT’s chairman, president and CEO, said the acquisition of these hospitals demonstrates the strong near-term opportunities embedded in the company’s robust global pipeline.
”This transaction is particularly powerful as it initiates an important new relationship between MPT and Ramsay Health Care – an active, leading health care operator with a substantial global portfolio.
”We are excited to establish this long-term relationship, particularly as it advances our efforts to enhance our geographic diversity, with hospitals representing approximately one-half of the total purchase price located in the highly-desirable greater London area,” Aldag said.
Martin Moore, chairman of Secure Income REIT said the sale amount, which represents a 19% premium above the December 2018 valuation, allows shareholders to realise some upside while still retaining a core holding of 11 high-quality acute hospitals, worth £643m at their 31 December 2018 valuations, let to Ramsay Health Care.
“We remain alert to opportunities to redeploy the capital raised when appropriate and, in the meantime, will top up shareholders’ income returns to the pre-transaction levels.”