Secure Income REIT has sold a portfolio of eight of its nineteen private hospitals to the US-based Medical Properties Trust, Inc., a self-advised real estate investment trust formed to acquire and develop net-leased hospital facilities for £347 million (appr. $434 million).
The assets which are let to Ramsay Health Care, sold represent 31% of Ramsay hospitals owned by the Secure Income REIT, at their 31 December 2018 valuations.
Ramsay Health Care, the fifth largest private hospital operator in the world and one of the leading operators in Western Europe, operates the hospitals and is the guarantor of the leases. Ramsay is headquartered in Sydney, Australia and operates 480 healthcare facilities across 11 countries, including 34 acute care hospitals and day procedure centers in the UK.
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The occupational leases have a current net rent payable of £16.0 million per annum. Unconditional contracts for the sale of the eight subsidiary companies that hold the properties have been exchanged and completion is scheduled for 16 August 2019.
“Our acquisition of these outstanding hospitals demonstrates the strong near-term opportunities embedded in our robust global pipeline,” said Edward K. Aldag, Jr., MPT’s Chairman, President and CEO.
“We believe that shareholders are best served by our active approach to portfolio management, recycling capital where it is prudent and advantageous to do so. This attractive offer, which represents a 19% premium above the December 2018 valuation, allows shareholders to realise some upside while still retaining a core holding of 11 high quality acute hospitals, worth £643 million at their 31 December 2018 valuations, let to Ramsay Health Care Limited, one of the world’s largest private healthcare companies,” said Martin Moore,Chairmnan at Secure Income REIT.