MPT sells a 50 percent stake in 8 facilities to Macquarie; CBRE acts as advisor
By John B. Mugford
The 319-bed, 1.1 million square foot St. Elizabeth Medical Center in Brighton, Mass., owned by Medical Properties Trust and operated by Steward Health Care System, was one of eight Massachusetts-based general acute care hospitals that were recapitalized. (Photo courtesy of CBRE)
Nearly everyone involved in the healthcare real estate (HRE) space is talking about the relatively new and growing trend in which large capital sources, including institutional investment management firms, are acquiring ownership stakes in medical office building (MOB) portfolios owned by experienced HRE firms.
It looks as if this trend is not limited to MOBs, however, as the recapitalization of a large portfolio of hospital facilities was finalized last week.
In the deal, Birmingham, Ala.-based Medical Properties Trust (MPT) Inc. (NYSE: MPW), a publicly traded real estate investment trust (REIT) focused on owning hospital facilities, formed a joint venture (JV) with Macquarie Infrastructure Partners V for the recapitalization of an eight-hospital portfolio currently valued at $1.7 billion. The transaction marks the completion of an agreement announced Sept. 1, which initially called for the acquisition of nine hospitals valued at $1.78 billion.
The private fund managed by Macquarie Asset Management – which is part of Sydney, Australia-based Macquarie Group and which has offices in the United States, Australia, Asia and Europe – acquired a 50 percent ownership stake in eight Massachusetts hospitals operated by Dallas-based Steward Health Care System. According to information from HRE data firm Revista, the deal closed March 15 at a capitalization (cap) rate, or first-year estimated return, of 5.6 percent.
A pair of teams with Dallas-based CBRE Group Inc. (NYSE: CBRE) advised MPT on the transaction, first assisting it in the sourcing of the new equity partner to recapitalize the assets, and then sourcing debt financing for the newly formed JV entity that now owns the hospital facilities.
HREI™ spoke this week with Lee Asher, who is vice chairman of the CBRE Investment Properties division and co-leader of the firm’s Healthcare and Life Sciences team with his business partner Chris Bodnar.
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