MIP V To Acquire 50% Interest In Eight Medical Properties Trust-owned Hospitals

(RTTNews) - Medical Properties Trust, Inc. (MPW) has agreed with Macquarie Infrastructure Partners V to form a partnership pursuant to which a MIP V unit will acquire a 50% interest in a portfolio of eight Massachusetts-based general acute care hospitals currently owned by Medical Properties Trust. The deal values the portfolio at approximately $1.78 billion. MIP V is an unlisted infrastructure fund managed by Macquarie Asset Management.

MIP V has agreed to acquire its interest in the partnership for cash based on a 5.6% 2021 cash cap rate. The partnership expects to raise nonrecourse secured debt of up to 55% of asset value. Total anticipated proceeds to Medical Properties Trust, including proceeds from the expected secured debt, will be approximately $1.3 billion.

Medical Properties Trust expects to to use the cash proceeds to repay debt and fund $950 million Springstone inpatient behavioral health facility transactions. Based on year-to-date transactions, Medical Properties Trust projects an annual run-rate of $1.16 to $1.20 per diluted share for net income and $1.81 to $1.85 per diluted share for normalized funds from operations.