US investor buys £1.5bn UK hospitals portfolio

Alabama-based Medical Properties Trust has agreed to buy the real estate of 30 UK acute care hospital facilities for £1.5bn. The hospitals are leased under long-term inflation-protected net leases to affiliates of BMI Healthcare. However, in a related deal, operator Circle Health has agreed to buy BMI and take over operation of the 52 facilities in its portfolio. Circle will agree a master lease across the MPT-acquired portfolio with an initial fixed term of 30 years, with two five-year extension options, and annual rent escalators linked to UK consumer price inflation. MPT chairman, president and chief executive Edward Aldag said: “These hospitals represent a unique collection of facilities that are critical to the delivery of acute health services across the UK. We are confident in the growing opportunities for private hospital operators in UK healthcare. We look forward to advancing our relationship with our UK operators in contributing to improved facility efficiency, quality of care and health outcomes for all hospital patients throughout the UK.” Five additional non-core properties from BMI’s portfolio will be sold  prior or following the closing of the deal, which is expected in the first quarter of 2020.   To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette