Medical Properties Trust Sells 11 Colorado Facilities For $86M

The University of Colorado Health (UCHealth) has purchased 11 facilities in the state for $86 million from Medical Properties Trust, Inc.

Specifically, the nonprofit healthcare company is adding a mix of urgent care, primary care, freestanding emergency departments, and imaging centers to its portfolio.

Originally, the 11 facilities were funded by MPT for $64 million. After the previous operator, Adeptus Health, filed for bankruptcy, UCHealth leased the medical centers at “a nominal rent concession reflective of UCHealth’s strong credit quality,” according to MPT. And now, the nonprofit will own them.

The move by MPT follows the real estate trust’s recent sell-off activity, as the company aims to trim down its debt. In July, for example, MPT sold eight Arizona properties for $160 million. In April, the Alabama-based company sold five hospitals to Prime Healthcare for $350 million. Also, in the second quarter, MPT fetched $800 million in financing, back by leasing 27 UK hospitals in its portfolio to Circle Health.

“MPT took decisive action to generate more than $2.5 billion of liquidity year-to-date – well above our initial target for the year – as well as to expedite debt paydown,” Edward K. Aldag, Jr., chairman, president, and CEO of the company said in its second quarter financial report posted this month. “The vast majority of our portfolio continues to perform well, and we remain focused on executing our strategy to demonstrate the tremendous value embedded in our platform.”

As of June, MPT said it had 435 properties and roughly 42,000 licensed beds that were leased or mortgaged by 53 hospital firms. Additionally, it had about $16.2 billion in assets.

Source: GlobeSt.