Medical Properties Trust, Inc. has agreed to acquire a portfolio of up to 21 healthcare facilities from HCP, Inc. for $371 million.
The acquisition from HCP, Inc., a real estate investment trust headquartered in Long Beach, Calif., that focuses on properties serving the healthcare industry, will extend across 15 states.
The portfolio consists of seven acute care hospitals in five states, five inpatient rehabilitation hospitals in five states, three long-term acute care hospitals in three states and six wellness centers in three states.
The company expects to complete the acquisition in stages from March 28 through the end of the second quarter of 2008.
The properties are currently subject to 14 separate leases, which will be assumed by MPT. The leases expire between 2009 and 2027, plus renewal options.
MPT intends to fund the acquisition of the HCP properties with proceeds from the sales of a combination of common stock and debt securities, the net proceeds it receives from its previously announced purchase and sale transactions with Vibra Healthcare, LLC, and borrowings under its existing credit facilities. It has also secured commitments from a syndicate of lenders for a senior secured interim loan facility, which is expected to provide up to $300 million of any unfunded balance of the purchase price.
"This portfolio acquisition is a transformative event for MPT," said Edward K. Aldag Jr., chairman, president and CEO. "The portfolio will increase the number of properties in our portfolio by 75 percent, substantially increase our tenant diversification with eight new, well-known operators whom we believe to be of high quality, as well as significantly improve our geographic footprint."
MPT is real estate company in Birmingham, Ala., that acquires and provides funds for healthcare facilities.