Medical Properties Trust sells 11 Colorado facilities for $86m

Medical Properties Trust (MPT) announced the completion of its sale of 11 freestanding emergency department (FSED), primary care, imaging and urgent care facilities in Colorado to University of Colorado Health (UCHealth) for $86 million. MPT intends to use the proceeds from the transaction to reduce debt and for general corporate purposes.

Construction of the eleven facilities was funded by MPT for their original operator, Adeptus Health (Adeptus), between 2015 and 2017 at a total initial cost of $64 million. Shortly after Adeptus filed for Chapter 11 bankruptcy protection in 2017, UCHealth leased the facilities from MPT without interruption to care and with a nominal rent concession reflective of UCHealth’s strong credit quality.