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GFH Financial Group Acquires U.S. Medical Offices Portfolio In $400M Deal

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GFH Financial Group, an investment bank based in Bahrain, has acquired a portfolio of medical clinics in the US in a deal valued at $400 million, expanding its real estate portfolio in the world’s largest economy.

The income-yielding medical clinics portfolio consists of 11 assets with more than one million square feet of space and is spread across California, Texas, Maryland and Louisiana, GFH said.

“We are pleased to announce the acquisition of this prime, income-yielding medical clinic portfolio as part of GFH’s ongoing expansion in the medical office building sector in fast-growing cities across the US,” Nael Mustafa, co-chief investment officer of real estate at GFH, said. “We believe strongly in the long-term fundamentals in the healthcare sector and the dynamics that are supporting an increase in demand for high-quality medical office space.”

To date, GFH has built a portfolio of assets in the US medical office building sector valued at $1 billion. In December, it acquired a portfolio of medical offices in the US in a deal valued at $200M. The medical offices portfolio consists of 11 assets with more than 400,000 square feet of space spread across North Carolina, South Carolina, Georgia, Utah, Wisconsin, Ohio and Texas.

The latest portfolio is anchored by investment-grade credit tenancy through Baylor Scott & White (Moody’s Aa3), Texas A&M Health Science Centre (Fitch: AAA), Texas Tech University (Fitch AA+), Memorial Hermann (S&P A+) and Tidal Health (Moody’s Aa3), GFH said. The assets also offer unique specialisations within their respective submarkets, positioning them for high occupancy and rent growth, it added.

The medical clinics sector has been strong performing and proven to be highly resilient to economic downturns — with 99 per cent rent collection during the Covid-19 pandemic. The sector also benefits from population growth and the aging US population accompanied by an increase in healthcare expenditure, which accounted for nearly 19 per cent of the US GDP last year, GFH said.

“Aging populations and growth in outpatient care … continue to make the sector highly recession-resilient and unimpacted by economic cycles. We look forward to working with our partner Big Sky Medical to maximize the value of these assets,” Mr Mustafa said.

GFH’s partnership with Big Sky has resulted in a number of acquisitions totalling nearly $500M in the past six months. This transaction is the third in a series of joint acquisitions.

GFH Financial Group reported a 10 per cent increase in its second-quarter profit as investment banking income and income from co-investments rose as the company continues to boost its portfolio around the globe.

Net profit attributable to shareholders of the bank for the three months to the end of June climbed to $23.06M compared with $20.92M during the same period last year.

 

Source: The National News

Greene Park Capital Invests $602M In Health Care Real Estate In Collaboration With Capital Partner, Northwest Properties REIT

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Greene Park Capital continues to show a robust pipeline of health care real estate investment, announcing that it closed a $602 million transaction in collaboration with its capital partner, NorthWest Healthcare Properties REIT.

This “significant milestone event,” as Greene Park Capital called it, marks the REIT’s entry into the US. The portfolio includes 27 specialized healthcare real estate assets across five asset classes located in 10 states.

“REITs are stepping back into the game,” Jeffrey A. Piehl, MAI, Partner and Real Estate Lead at HealthCare Appraisers, tells GlobeSt,

As detailed in Health Care Appraisers’ 2022 Medical Office Fundamentals Outlook, “new institutional investors and capital are actively pursuing US-based healthcare real estate, and medical office properties, in particular.

“The MOB asset class and its recession-resilient fundamentals has attracted capital worldwide as recently witnessed by the large-scale transaction by the Canadian REIT, a portfolio that included properties across the spectrum of healthcare real estate, illustrating the depth of demand across healthcare real estate facilities.”

Acquired Portfolio Diverse

Included in the diverse portfolio of assets as part of the initial transaction are medical office buildings, acute care hospitals, inpatient rehabilitation facilities, ambulatory surgical centers, micro hospitals and behavioral health facilities.

 “Our strategy is to focus on customer-centric healthcare providers that can adapt to new technologies, new delivery models, and evolving regulations,” Greene Park Co-Founder and Managing Partner Jason Simmers said in prepared remarks,

 

Source: GlobeSt.

IRA Capital Expands Medical Office Portfolio With Florida, Pennsylvania Acquisitions

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Southern California private equity firm IRA Capital (“IRA”) announced the acquisition of two ambulatory surgery center facilities in the Florida and Pennsylvania markets.

The Florida property is 100% leased to The Center for Specialized Surgery (“TCSS”), an orthopedic-focused surgery center operated by Regent Surgical Health (“Regent”) in partnership with Lee Health, a leading health system in Southwest Florida.

The Pennsylvania property is leased to Pocono Ambulatory Surgery Center (“PASC”), a multi-specialty surgery center operated by Surgical Care Affiliates (“SCA”) in partnership with Lehigh Valley Health Network (“LVHN”), a leading health system in the Lehigh Valley region.

The Center for Specialized Surgery – Lee Health

The Center for Specialized Surgery is located in Fort Meyers, Florida and comprises approximately 9,000 Square Feet. The 3-OR facility was built in 2012 and is operated by Regent Surgical Health in partnership with 8 physicians from Orthopedic Specialists of Southwest Florida, whose offices are located adjacent to the center. The surgery center specializes in a full range of spine and orthopedic procedures, including total joint replacement. The property is situated across the street from Lee Health’s 415-bed Lee Memorial Hospital, the only Level II trauma center between Miami and Sarasota. In 2019, Lee Health acquired a majority interest in the surgery center partnership.

Pocono Ambulatory Surgery Center – Lehigh Valley Health

Pocono Ambulatory Surgery Center is located in Stroudsburg, Pennsylvania and leases approximately 32,000 square feet of the facility, which features three operating rooms, a mix of pre and post operation bays, an X-Ray room, and several pre-operation exam rooms. The center employs more than 35 surgeons, and offers ambulatory procedures in more than 15 specialties including gastroenterology, plastic, colon-rectal, ophthalmology, orthopedic, podiatric, and ENT surgery. IRA and PASC signed a new long-term lease for the facility as part of the transaction.

IRA Capital continues to be among the most active healthcare real estate investors, with these latest transactions representing the company’s thirteenth and fourteenth healthcare acquisitions in the past 75 days, totaling over $270 million. According to IRA Capital partner Amer Kasm, the key factors in IRA’s investment decision included each center’s strong performance and position within their respective markets, along with the financial backing of leading health system and the operational expertise provided by top-notch surgery center operators. IRA has continued to strategically grow its portfolio, and has remained focused on being a valuable partner by providing solutions to its tenants and partners during these uncertain times.

 

Source: HREI