MPT Continues Expansion Abroad with Acquisition of UK Hospital for Approximately $50 Million
Medical Properties Trust, Inc. has announced the acquisition of the real estate assets of CircleBath Hospital in Bath, England, for approximately $50 million.
This marks MPT's first acquisition in the United Kingdom, and its 12th in Europe. As MPT Chairman, President, and CEO Edward K Aldag, Jr. noted, "This is further proof of MPT's significant progress in executing our growth and diversification strategy."
"We are very pleased to be expanding our Western European footprint," Aldag said, "and we expect to take advantage of other opportunities in the region as the UK's National Health Service (NHS) continues to grant access to private hospitals."
"While we expect the U.S to remain our core market for investments in acute care hospitals, which is MPT's focus, we will continue to pursue acquisition opportunities abroad that will be immediately accretive to our funds from operations (FFO), or normalized earnings stream."
The 28-bed acute care hospital, operated by Circle Health Ltd., has been catering to the medical needs of the Bath community (approximately 100 miles west of London) since opening in 2010. This state-of-the-art facility offers elite levels of patient care for both private and NHS patients through its specialist units.
Distinguished by its high level of accommodations and clinical services, CircleBath has been ranked as one of the top 10 hospitals in England for hip and knee replacements by NHS England Research. The terms of the acquisition and leaseback transaction with MPT include a 15-year lease with a tenant option to extend the lease for an additional 15 years.