Waterland's Median Kliniken sells 40 hospitals

Medical Properties Trust (MPT) has stated it will acquire and lease back all of Median Kliniken's real estate. The transaction will take place in two steps: MPT will first acquire a 5.1% stake in the buyout of Median (with Waterland securing the remaining 94.9%) and will provide loans to Waterland and Median for up to the €705m real estate purchase and lease-back. The loans will then be offset against the purchase prices of each real estate acquisition.

The clinic operator sold 38 rehabilitation and 2 acute care hospitals under a 27-year master lease. The initial lease rate is within MPT's 8-11% target range, with annual increases at 1%.

Advent International and Marcol Healthcare announced the sale of Berlin-based Median Kliniken to Waterland last week. The deal values Median Kliniken at around €1bn, including debt.

RHM Kliniken, another Waterland portfolio company, will also lease three further German rehabilitation hospitals to MPT for €64m. The facilities will be leased under long-term net leases with an average rate of 9.3% and index-based increases.

MPT is headquartered in Birmingham, Alabama. It is a self-advised real estate investment trust with a focus on healthcare delivery. It states its financing model allows hospitals and other healthcare facilities "to unlock the value of their underlying real estate", which in turn funds improvements and technology upgrades.

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• Topics
• DACH
• Healthcare
• Portfolio management
• Germany
• Waterland Private Equity