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Medical Properties Trust completes $350m sale of facilities to Prime Healthcare
Transactions - APRIL 10, 2024

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Medical Properties Trust completes $350m sale of facilities to Prime Healthcare

by RELEASED

Medical Properties Trust (MPT) announced that it has completed its previously announced sale of five facilities in California and New Jersey to Prime Healthcare (Prime) for an aggregate consideration of $350 million. The total consists of $250 million paid in cash and a $100 million interest-bearing mortgage note due to MPT in nine months.

As previously reported, Prime and MPT agreed to a new 20-year master lease for the remaining four hospitals leased to Prime, including a $260 million purchase option. To encourage Prime to exercise its purchase option early in the new lease term, the parties have agreed that the properties may be purchased at the $238 million lease base on or before Aug. 26, 2028. After that, the option price reverts to $260 million (subject to annual escalations).

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