U.S. Medical Properties to acquire 11 hospitals in Australia for $859 mln

U.S.-based real estate investment trust Medical Properties Trust Inc. (MPT) has agreed to purchase 11 Australian hospitals from affiliates of healthcare company Healthscope Ltd. for an about $859 million.

MPT will fund the acquisitions using its existing cash balances, including about $200 million in net proceeds from the recent issuance of common shares, and an undrawn $1.3 billion revolver under its credit facility.

The 11 hospitals are concentrated in metropolitan areas in Australia and will be leased pursuant to master leases that have an average initial term of 20 years with annual fixed escalations and multiple extension options.

MPT will invest up to an extra $350 million for expansion and redevelopment projects in 2019 and future years. The deals are expected to close in the second quarter of 2019, subject to Healthscope shareholder approval, certain governmental consents and other customary closing conditions.