Medical Properties Trust Partners Forms Partnership with Macquarie Infrastructure Partners V for Eight Massachusetts Hospitals Valued at $1.78 Billion

The Real Estate Industry team advised Medical Properties Trust (NYSE: MPW) in its agreement with Macquarie Infrastructure Partners V (“MIP V”) to form a partnership pursuant to which a MIP V controlled subsidiary will acquire a 50% interest in a portfolio of eight Massachusetts-based general acute care hospitals currently owned by MPT and operated by Steward Health Care System under a 20-year triple net master lease. MIP V is an Americas-focused $6.9 billion unlisted infrastructure fund managed by Macquarie Asset Management. The transaction values the portfolio at approximately $1.78 billion, which represents a 48% increase over MPT’s original investment in these hospitals made in 2016. The consummation of the transaction is subject to customary closing conditions, as well as the ability to source nonrecourse secured debt financing for the transaction.  Total anticipated proceeds to MPT (including from the expected debt) will be approximately $1.3 billion, which MPT expects to use to repay debt and fund previously announced investments in inpatient behavioral health facilities.

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the company has grown to become one of the world’s largest owners of hospitals with roughly 440 facilities and 46,000 licensed beds (on a pro forma basis) in nine countries and across four continents.

The Goodwin team was led by Jeremy Simon, Edward Glazer, Todd Pollock and Matt Dunay.

For additional details on the transaction, please read the press release.