MPT To Buy 40 Rehabilitation Hospitals In Germany For $900 Mln

(RTTNews) - Medical Properties Trust, Inc. (MPW) said Monday that it has agreed to buy and lease back substantially all of the real estate assets of privately-held MEDIAN Kliniken Group, the largest private provider of post-acute and acute rehabilitation services in Germany.

The aggregate purchase price for the real estate assets is expected to be about €705 million, or $900 million based on current exchange rates.

The deals are expected to be completed during the first quarter of 2015.

Under the terms of the sale/leaseback agreement, MPT will acquire from and leaseback to MEDIAN the real estate assets of 38 rehabilitation and 2 acute care hospitals throughout Germany pursuant to a 27 year master lease that provides an initial lease rate well within MPT's 8.0% to 11.0% target range, with annual escalators at the greater of one percent or 70% of German CPI.

In addition to the MEDIAN acquisitions, MPT also announced about $155 million in recent, previously undisclosed commitments and investments. Those hospital assets include three acute facilities in the United States, located in Alabama, Texas and West Virginia, with an aggregate value of about $74 million and three additional German rehabilitation hospitals with an aggregate value of about $81 million, based on agreed pricing of €64 million, to be leased to RHM Kliniken, a current tenant of the company's assets in Germany, and owned by affiliates of Waterland Private Equity, the expected future majority owner of MEDIAN.

With those deals, MPT has committed to investments totaling about $1.4 billion year-to-date, the highest amount of investments the Company has made in a single year in its history.

Consistent with MPT's standard agreements, the new U.S. hospital facilities, as well as those included in the new commitment with RHM Kliniken, will be leased back to the operators under long-term net leases with a weighted average initial cash lease rate of approximately 9.3% and consumer price index-based escalators.