Medical Properties Trust, Inc. to Acquire the Real Estate Assets of Three IASIS Hospitals in $283.3 Million Sale / Leaseback Transaction
<0> Medical Properties Trust, Inc.Charles Lambert, 205-397-8897Managing Director - Capital Markets </0>
Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW) today announced affiliates of IASIS Healthcare LLC are the sellers / lessees under the recently announced $283.3 million three hospital real estate acquisitions.
Under the terms of the transaction, which is subject to customary conditions and is expected to close during the third quarter, MPT will acquire the real estate assets of Mountain Vista Medical Center in Mesa, Arizona, which has 178 beds; Glenwood Regional Medical Center in West Monroe, Louisiana, which has 268 beds; and The Medical Center of Southeast Texas, in Port Arthur, which has 224 beds.
As part of the agreement, IASIS and MPT have agreed to adjust the rental rate, add $2.0 million of improvements funded by MPT and to extend the 2019 maturity of MPT’s existing lease of the Pioneer Valley Hospital through 2028. All of the IASIS leases are cross-defaulted and have a common initial term of 15 years.
IASIS is one of the largest for-profit acute care operators in the U.S. according to , with total annual net revenue of approximately $2.4 billion. IASIS owns and operates 19 acute care hospitals, one behavioral health hospital, several outpatient service facilities, more than 160 physician clinics, and Medicaid and Medicare managed health plans in Arizona and Utah that serve more than 176,000 members.
“We are excited about this significant expansion of our relationship with IASIS,” said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. “This transaction demonstrates the opportunities inherent in a sale and leaseback structure for sophisticated employers of capital like IASIS that seek low cost capital while retaining control of its facilities.”
Medical Properties Trust, Inc. is a Birmingham, Alabama based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers and other single-discipline healthcare facilities. For more information, please visit the Company’s website at .