by John R. Fischer
, Senior Reporter | March 25, 2022
Macquarie Asset Management has invested roughly $1.7 billion in hospital infrastructure owned by Medical Properties Trust.
Under the terms of the partnership, MAM will gain a 50% interest in eight general acute care hospitals under MPT and operated by Steward Health Care System in Massachusetts. Both companies expect the deal to be an example of how hospitals are an attractive infrastructure asset class to invest in and to bring awareness to their true value in the market. Apollo provided a roughly $920 million loan in the deal, according to the Commercial Observer
The hospitals are located in Brighton, Methuen, Haverhill, Brockton, Fall River, Taunton, Ayer and Dorchester, reported The Boston Real Estate Times
“We are excited to have reached financial close on these eight, high-quality acute care facilities in Massachusetts and about our broader partnership with MPT. Hospitals are essential, long-lived assets that are critical to any functioning community, and these attributes drive a resilient operating environment and investment profile characteristic of other infrastructure assets,” said Karl Kuchel, CEO of Macquarie Infrastructure Partners, in a statement.
A self-advised real estate investment trust based in Alabama, MPT is one of the largest hospital owners in the world, with roughly 440 facilities and 46,000 licensed beds (on a pro forma basis) in nine countries and across four continents.
MAM offers specialist investment solutions for infrastructure and renewables, real estate, private credit, equities and multi-asset solutions among other areas. With $545.7 billion in assets, the company employs over 2,000 staff in 22 markets in the Americas, Europe, Asia and Australia.
The two originally partnered
back in September, with the agreement comprising a 48% increase over the original investment in the hospitals in 2016. Both companies say that the deal recognizes the efficiency of MPT’s underwriting process for identifying operators and strategies that provide long-term and sustained improvements to operations. This aligns with the company’s financing model, which allows outside parties like MAM to acquire and recapitalize hospitals to fund facility improvements, technology upgrades and other operational investments.