Medical Properties Trust has acquired a 46% stake in Swiss healthcare real estate company Infracore SA (“Infracore”) from previous majority shareholder, Aevis Victoria SA (“Aevis”) for $236.5 million.
Infracore’s real estate is valued at almost $900 million, making MPT’s share approximately $410 million and MPT the largest shareholder.
The Infracore portfolio is comprised of 13 state-of-the-art acute care hospital campuses located throughout Switzerland and operated primarily by Swiss Medical Network (“SMN”), a wholly-owned Aevis subsidiary. Aevis and additional existing shareholder Baloise Group will each retain smaller stakes in Infracore. MPT used cash on hand in Europe to fund the investment.
“This investment in Infracore presents MPT a unique opportunity to enter the Swiss healthcare market with the second largest private hospital operator in the country, and we are excited to establish a new long-term relationship with Swiss Medical Network,” said Edward K. Aldag, Jr., MPT’s Chairman, President, and CEO. “Moreover, the investment provides near-term opportunities for MPT to grow our investment in Infracore as Infracore continues to strengthen its platform in Switzerland.”
The hospital campuses total approximately 1.5 million square feet of extremely high-quality assets, with an average 23 year remaining lease term. MPT’s investment reflects an initial return of approximately 5.0% and will be adjusted annually by 100% of Swiss inflation. Infracore presently has debt approximating 50% of its real estate value with a weighted average interest rate of 1.7%.
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