New York, 1 September 2021
Macquarie Infrastructure Partners V (“MIP V”) an Americas-focused unlisted infrastructure fund managed by Macquarie Asset Management, today announced that it has entered into an agreement with Medical Properties Trust, Inc. (“MPT”) (NYSE: MPW) to form a partnership pursuant to which a MIP V controlled subsidiary will acquire a 50 per cent interest in a portfolio of eight Massachusetts-based general acute care hospitals currently owned by MPT and operated by Steward Health Care System (“Steward”). The transaction values the portfolio at approximately $US1.78 billion.
As part of the transaction, MPT will retain the remaining 50 per cent interest in the portfolio. MPT is one of the largest non-government owners of hospitals globally and focuses on acquiring and managing net-leased healthcare facilities in the US and selective foreign jurisdictions. Under the 20-year master lease, Steward is wholly responsible for operating the hospitals, including providing all patient services and incurring all costs and capital expenditure required to maintain the hospital facilities in good working order.
“We are excited to enter into this partnership with MPT,” said Karl Kuchel, Chief Executive Officer of Macquarie Infrastructure Partners. “The eight hospitals that we are investing in are essential to their local communities and Steward, as operator, has clearly demonstrated the ability to transform the performance of these acute care hospitals over the last five years, so that they are now world class, well-operated healthcare infrastructure facilities. MPT is a leading global hospital owner, and our 50/50 partnership with MPT, combined with the 20-year triple net master lease with Steward, ensures that there is strong alignment across all parties with respect to the long-term performance of this portfolio.”
“We are very pleased to have found in Macquarie Asset Management a partner that recognizes the pivotal role hospitals play in US infrastructure,” said Edward K. Aldag, Jr., MPT’s Chairman, President, and CEO. “This first of its kind partnership with one of the largest infrastructure investors globally confirms the quality of this hospital portfolio and demonstrates the strength of MPT’s overall investment strategy and our ability to deliver value for our shareholders. This partnership also strongly validates the financial and operational strength of Steward, which has significantly improved the performance of these assets over the last five years and has continued to deliver first class patient care to the Boston area throughout the pandemic while growing its overall national footprint.”
Steward Health Care commented, “Steward is pleased to see continued value creation around these hospitals. Macquarie’s purchase of these assets is a vote of confidence in Steward’s operational experience and its track record of delivering value for its stakeholders, employees, patients, communities, and partners over the long term.”
The consummation of the transaction is subject to customary closing conditions, as well as the ability to source nonrecourse secured debt financing for the transaction.
Macquarie Asset Management provides specialist investment solutions to clients across a range of capabilities including infrastructure & renewables, real estate, agriculture, transportation finance, private credit, equities, fixed income, and multi-asset solutions.
As of March 31, 2021, the Macquarie Asset Management business had $US427 billion of assets under management and over 1,900 staff operating across 20 markets in Australia, the Americas, Europe, and Asia.
Macquarie Asset Management, through its affiliates, has been managing assets for institutional and retail investors since 1980 in Australia and in the United States, retail investors recognize the Delaware Funds ® by Macquarie family of funds as one of the longest-standing mutual fund families, with more than 80 years in existence.
More information can be found at mirafunds.com.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospitals with 443 facilities and roughly 47,000 licensed beds (on a pro forma basis) in nine countries and across four continents. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company’s website at medicalpropertiestrust.com.
This press release does not constitute an advertisement or an offer to sell any security or the solicitation of any offer to buy an interest in MIP V or any existing or future fund or investment vehicle managed or advised by MAM and/or its affiliates or any other security.
None of the entities referred to in this press release is an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (“MBL”). MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity.