Birmingham, Ala.-based Medical Properties Trust has renewed the lease of its Watsonville (Calif.) Community Hospital to Pajaro Valley Health Care District Corp. and negotiated the resale of 11 other facilities to Ontario, Calif.-based Prime Healthcare under a tenant purchase option, according to a Sept. 7 news release.
As part of the transaction, the Pajaro Valley Health Care District Corp. repaid Medical Properties Trust more than $30 million in financing it provided to allow the Watsonville Community Hospital to remain open.
Medical Properties Trust also resold Prime Healthcare nine general acute hospitals and two related medical office buildings in California, Indiana, Nevada, and Pennsylvania for net proceeds of about $360 million. The hospitals and medical office buildings in the transaction were part of Prime Healthcare's portfolio and originated from sale-leaseback transactions originally entered in 2012.
In addition to proceeds from these transactions, $200 million of loan repayment proceeds are expected due to another pending transaction with LifePoint Health in early 2023. Combined, Medical Properties Trust will leverage about $600 million in near-term liquidity to reduce leverage and execute other acquisitions.
Medical Properties Trust was formed in 2003 and has about 435 healthcare facilities in 10 countries.