Medical Properties Trust acquires stake in Switzertland’s Infracore
US-based real estate investment trust Medical Properties Trust (MPT) has acquired a 46% stake in Swiss healthcare real estate company Infracore from its previous majority shareholder – Aevis Victoria for $236.5 million.
The real estate of Infracore is valued at nearly $900 million which means the share of the new largest shareholder Medical Properties Trust is about $410 million.
The portfolio of the healthcare infrastructure company is made up of 13 acute care hospital campuses located across Switzerland and operated mainly by Swiss Medical Network (SMN), a 100% subsidiary of Aevis.
Altogether, the hospital campuses span over an area of nearly 1.5 million square feet with an average remaining lease term of 23 years.
Medical Properties Trust is expecting an initial return of nearly 5.0% which will be annually adjusted by 100% of Swiss inflation. Currently, Infracore has debt nearly 50% of its real estate value with 1.7% weighted average interest rate.
Following the transaction, Aevis and the other existing shareholder Baloise Group will each hold smaller stakes in Infracore.
Edward K. Aldag, Jr. – Medical Properties Trust Chairman, President, and CEO said: “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. Moreover, the investment provides near-term opportunities for MPT to grow our investment in Infracore as Infracore continues to strengthen its platform in Switzerland.”