Medical Properties Trust enters 50% Joint Venture with Primonial, marking largest real estate healthcare transaction in Europe

Global real estate advisor, CBRE, has advised Medical Properties Trust (MPT) on the sale of a 50% stake in its MEDIAN Kliniken portfolio in Germany to French investor, Primonial REIM, for over €800m. This marks the largest healthcare real estate transaction in Europe this year.

MPT’s portfolio consists of 71 clinics, which are all let to MEDIAN on long leases. MPT will continue to manage the portfolio with Primonial owning a 50% stake in the holding company, based in Luxembourg. The deal reflected a net initial yield of 6%, valuing the median platform at over €1.6bn.

In addition to the JV sale, CBRE Capital Advisors raised €655m of debt on behalf MPT from a consortium of lenders, including Societe Generale and a number of AXA debt funds. This marks the largest European debt raise in 2018 to date.

Edward K. Aldag, Jr. MPT’s Chairman, President and CEO said: “This is a landmark transaction for MPT and is testament to the quality of our assets and operating partners. CBRE has been advising us for several years on our portfolio of healthcare assets in Germany and listened very carefully to what we were seeking to achieve. They completely understood our financing strategy and our desire to manage exposure to key operating tenants in our global portfolio, using a range of expertise from across the firm. We are absolutely delighted with this outcome.”

CBRE in London and Frankfurt acted as exclusive advisors to MPT, marketing the share in the property company to investors in North America, Europe and Asia Pacific. CBRE Capital Advisors were also the exclusive brokers for the debt.

Keith Harris, Executive Director, Healthcare Transactions, CBRE
The healthcare sector is increasingly dominated by global investors attracted to its strong fundamentals. Demand is underpinned by an aging population with increasingly complex care needs, a consolidating private-sector operator landscape and a compelling opportunity for sustainable income. This transaction demonstrates the increasing level of appetite from international capital for healthcare assets.
Keith Harris, Executive Director, Healthcare Transactions, CBRE
Dirk Richolt, Head of Real Estate Finance, CBRE Germany
This is a landmark deal for the healthcare sector and demonstrates how CBRE can deliver best in class outcomes for clients, using the depth and breadth of our real estate knowledge across Europe in combination with our specialist financial expertise.
Dirk Richolt, Head of Real Estate Finance, CBRE Germany