U.S. Medical Properties Trust Purchases 40 German Hospitals

Posted: November 11, 2014 in Econ 101, Free Trade

SOURCE: http://www.bizjournals.com/birmingham/news/2014/11/10/medical-properties-trust-purchases-40-german.html

German hospitals for $900M
Nov 10, 2014, 11:42am CST Updated: Nov 10, 2014, 11:58am CST

Edward K. Aldag Jr., CEO of Medical Properties Trust

Reporter- Birmingham Business Journal

After its $244 million purchase of 11 medical facilities in Germany last year and a $50 million purchase of a hospital in England earlier this year, Medical Properties Trust has expanded its European footprint through the $900 million acquisition of 38 rehabilitation hospitals and two acute care hospitals in Germany.

MPT will acquire and lease back the assets to the seller, Berlin-based MEDIAN Kliniken Group, with a lease rate between 8-11 percent, according to a press release. MEDIAN Kliniken Group is the largest provider of post-acute and acute rehabilitation services in Germany.

“This transaction further demonstrates MPT’s success in leveraging its deep understanding of the healthcare markets and continues its track record of completing highly accretive investments across diverse geographies,” said CEO Edward K. Aldag, Jr. “This is an important transaction because it significantly increases our asset base to approximately $4.5 billion, and builds on our recent entry into the attractive Western European market. The acquisition of the MEDIAN real estate is a very compelling and unique opportunity for MPT and is fully aligned with our strategy to diversify our market-leading hospital portfolio across geography, operator and facility type.”

MPT also announced the stateside acquisition of three acute facilities in Alabama,Texas and West Virginia worth $155 million and three additional German rehabilitation hospitals for $81 million.

These recent purchases extend MPT’s assets by 30 percent to $4.5 billion, grow the total number of properties in its portfolio by 39 percent to 165 and increase its number of beds by 98 percent to nearly 20,000.

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