French investor Primonial has acquired a 50% stake in a portfolio of healthcare clinics in Germany from Medical Properties Trust (MPT) for €800 mln.
MPT was advised by CBRE on the sale of the share in its Median Kliniken portfolio in Germany, marking the largest real estate healthcare transaction in Europe this year.
'This is a landmark transaction for MPT and is testament to the quality of our assets and operating partners,' said CEO and co-founder Edward K. Aldag, Jr.
MPT’s portfolio consists of 71 clinics, which are all let to Median on long leases. MPT will continue to manage the portfolio with Primonial owning a 50% stake in the holding company, based in Luxembourg. The deal reflects a net initial yield of 6%, valuing the median platform at over €1.6 bn.
In addition to the sale, CBRE Capital Advisors raised €655 mln of debt on behalf of MPT from a consortium of lenders, including Société Générale and a number of AXA debt funds. This marks the largest European debt raise in 2018 to date.
'The healthcare sector is increasingly dominated by global investors attracted to its strong fundamentals,' said Keith Harris, executive director, healthcare transactions, CBRE.
'Demand is underpinned by an aging population with increasingly complex care needs, a consolidating private-sector operator landscape and a compelling opportunity for sustainable income. This transaction demonstrates the increasing level of appetite from international capital for healthcare assets.'
CBRE marketed the MPT stake to investors in North America, Europe and Asia Pacific. CBRE Capital Advisors brokered the debt transaction.