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).
