Medical Properties Trust, Inc. (MPT) has agreed to acquire a portfolio of behavioral health facilities located in the United Kingdom for approximately £800 million, plus customary stamp duty tax and other transaction costs.
The facilities are currently owned and operated by leading UK behavioral health provider Priory Group which will be acquired by Waterland Private Equity Investments (Waterland) from Acadia Healthcare.
”Following Waterland’s acquisition of Priory, the properties MPT will acquire will be subject to long-term sale-leaseback agreements with Priory,” the company said in a statement.
“We are elated to rapidly expand both our presence in the UK and our exposure to the increasingly critical behavioral health hospital segment at what we believe to be a very strong return to MPT,” said Edward K. Aldag, Jr., MPT’s Chairman, President, and Chief Executive Officer.
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“Our unique understanding of healthcare operations and real estate, successful track record investing in Europe, leadership position in the UK healthcare real estate financing market, and proven ability to execute complicated, multi-national transactions were critical in securing this competitive transaction despite obvious complexities related to the pandemic and a changing trade landscape between the UK and European Union,” he added.
MPT said the sale-leaseback agreements are expected to provide MPT a GAAP-basis yield of 8.6% and were underwritten based on initial lease payment coverage of approximately 2.0 times EBITDAR.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities.