• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
Revista

Revista

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
  • Why Subscribe?
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Mergers/Acquisitions / Medical Properties Trust to Buy Capella Healthcare

Medical Properties Trust to Buy Capella Healthcare

July 30, 2015 by Mike Hargrave Topics: Mergers/Acquisitions, Real Estate Financing/Capital Markets

Medical Properties Trust (NYSE: MPW) has recently announced they were acquiring the real estate of seven hospitals as well as an interest in the operations of Capella Healthcare in a transaction valued at $900 million. The deal is split two-thirds ($600 M) to real estate and one-third to operations. The deal represents the single largest transaction in MPW’s history and will grow their real estate asset base (based on 1Q15 gross real estate assets) by some 19%. The deal also ranks as the second largest hospital real estate deal of YTD 2015 behind Ventas’ $1.4 B (real estate) acquisition of Ardent Health Services. According to MPW, here are some of the metrics surrounding the deal:

MPW Acquisition Roadshow Presentation (Aug 2015) v55 FINAL_Page_03

 

 

 

 

 

 

 

 

 

 

 

MPW provided good color on the deal so we can compare the metrics to the VTR/Ardent deal and Revista averages over the past 12 months. Please visit www.medicalpropertiestrust.com for more color on the deal.

HospitalREDeals1

 

 

 

 

 

 

 

 

1. VTR/Ardent deal included hospitals and “related real estate” which may distort some of the metrics presented.

2. Price paid for real estate only, excludes operations

3. Yield represents the going in cash yield which is estimated for the MPW/Capella deal. MPW reported the GAAP yield at 9.1%. Cash yields are generally 20-50 bps lower than GAAP.

Mike Hargrave
Mike Hargrave

Other Articles by Mike Hargrave:

    • Demand for Outpatient Space Growing Faster than Supply
    • Rent Inflation Impacting Outpatient Sector
    • HCRE Construction Spending Peaks in 2023

Previous Post:HTA Sets the Pace in 2Q
Next Post:MOB in Oakdale, CA Trades Hands

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Archives

RSS Recent Blog Posts

  • MOB Fundamentals Remain Steady November 30, 2023
    Development and acquisition activity is currently suppressed in the medical office sector. However, this does not reflect a wavering in the underlying performance of medical assets. The graph below is from our 3Q23 Industry Fundamentals Report, which tracks a group of large medical office portfolios containing approximately 150 million square feet. It shows the average […]
    Stephen Lindsey
  • Demand for Outpatient Space Growing Faster than Supply November 28, 2023
    It is no secret that many healthcare services and procedures are increasingly moving towards an outpatient setting. Advances in technology, cost efficiencies and other factors have enabled this move which has led to consistent and steady growth of demand for outpatient space, and the underlying supply of such space. Revista normally tracks the supply/demand picture […]
    Mike Hargrave
  • Rent Inflation Impacting Outpatient Sector October 25, 2023
    Revista recently held its 3Q23 Subscriber Webinar.  One of the topics discussed was rent inflation. The charts below show Avg. NNN and Avg. 90th percentile base rents for medical office … The post Rent Inflation Impacting Outpatient Sector appeared first on Revista.
    Mike Hargrave
  • Are MOB Sales Taking Place in the Current Environment? October 24, 2023
    The year of 2023 has brought significant drops in sales activity across the commercial real estate sector. The higher cost of capital is driving investors into cautiousness and the healthcare real estate market is not immune … The post Are MOB Sales Taking Place in the Current Environment? appeared first on Revista.
    Stephen Lindsey

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Terms of Use
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn