MPT’s First Investment in Switzerland Provides Attractive Yield
and Pathway to Additional Growth in Swiss Market
BIRMINGHAM, Ala.–(BUSINESS WIRE)–Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW)
today announced that it has acquired for $236.5 million a 46% stake in
Swiss healthcare real estate company Infracore SA (“Infracore”) from
previous majority shareholder, Aevis Victoria SA (“Aevis”). Infracore’s
real estate is valued at almost $900 million, making MPT’s share
approximately $410 million and MPT the largest shareholder.
The Infracore portfolio is comprised of 13 state-of-the-art acute care
hospital campuses located throughout Switzerland and operated primarily
by Swiss Medical Network (“SMN”), a wholly-owned Aevis subsidiary. Aevis
and additional existing shareholder Baloise Group will each retain
smaller stakes in Infracore. MPT used cash on hand in Europe to fund the
investment.
“This investment in Infracore presents MPT a unique opportunity to enter
the Swiss healthcare market with the second largest private hospital
operator in the country, and we are excited to establish a new long-term
relationship with Swiss Medical Network,” said Edward K. Aldag, Jr.,
MPT’s Chairman, President, and CEO. “Moreover, the investment provides
near-term opportunities for MPT to grow our investment in Infracore as
Infracore continues to strengthen its platform in Switzerland.”
The hospital campuses total approximately 1.5 million square feet of
extremely high-quality assets, with an average 23 year remaining lease
term. MPT’s investment reflects an initial return of approximately 5.0%
and will be adjusted annually by 100% of Swiss inflation. Infracore
presently has debt approximating 50% of its real estate value with a
weighted average interest rate of 1.7%.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment
trust formed to acquire and develop net-leased hospital facilities.
MPT’s financing model facilitates acquisitions and recapitalizations and
allows operators of hospitals to unlock the value of their real estate
assets to fund facility improvements, technology upgrades and other
investments in operations. For more information, please visit the
Company’s website at www.medicalpropertiestrust.com.
About Infracore
Infracore SA is a healthcare infrastructure company based in
Switzerland. Its portfolio consists primarily of acute hospital campuses
across Switzerland, representing a total rental surface of 157,499 sqm
and a market value of CHF 891.4 million. Almost all properties are fully
let, mainly through long-term leases with hospitals belonging to Swiss
Medical Network.
About Swiss Medical Network
Swiss Medical Network is one of Switzerland’s leading private clinic
groups. Swiss Medical’s clinics, which are located in all three of the
country’s main language regions, all provide first-class hospital
treatment, care and assistance to patients from Switzerland and abroad.
Swiss Medical Network SA is a fully-owned subsidiary of AEVIS VICTORIA
SA, which is involved in healthcare, life sciences, hotel and lifestyle
service fields.
The statements in this press release that are forward looking are
based on current expectations and actual results or future events may
differ materially. Words such as “expects,” “believes,” “anticipates,”
“intends,” “will,” “should” and variations of such words and similar
expressions are intended to identify such forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results of the
Company or future events to differ materially from those expressed in or
underlying such forward-looking statements, including without
limitation: the satisfaction of all conditions to, and the timely
closing (if at all) of pending transactions; the amount of acquisitions
of healthcare real estate, if any; results from potential sales and
joint venture arrangements, if any; capital markets conditions;
estimated leverage metrics; the repayment of debt arrangements;
statements concerning the additional income to the Company as a result
of ownership interests in equity investments and the timing of such
income; the payment of future dividends, if any; completion of
additional debt arrangements, and additional investments; national and
international economic, business, real estate and other market
conditions; the competitive environment in which the Company operates;
the execution of the Company’s business plan; financing risks; the
Company’s ability to maintain its status as a REIT for income tax
purposes; acquisition and development risks; potential environmental and
other liabilities; and other factors affecting the real estate industry
generally or healthcare real estate in particular. For further
discussion of the factors that could affect outcomes, please refer to
the “Risk factors” section of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2018 and as updated by the Company’s
subsequently filed Quarterly Reports on Form 10-Q and other SEC filings.
Except as otherwise required by the federal securities laws, the Company
undertakes no obligation to update the information in this press release.
Contacts
Tim Berryman
Director – Investor Relations
Medical Properties
Trust, Inc.
(205) 969-3755
[email protected]
