Medical Properties Trust and Praemia REIM Joint Venture Announces €702.5 Million Refinancing Transaction

Business Wire

4 hours ago

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Medical Properties Trust, Inc. (the 'Company' or 'MPT') (NYSE: MPW) and Praemia REIM today announced that their 50/50 joint venture ('the JV') has refinanced its maturing seven-year debt agreement at a 5.1% fixed rate. This €702.5 million non-recourse, 10-year non-amortizing debt is secured by a portfolio of German rehabilitation hospitals operated by MEDIAN, the largest operator of rehabilitation hospitals in Europe. The lending group comprises a consortium of global institutional, insurance and pension investors led by Song Capital, a European real estate investment firm.
The majority of the new secured loan is expected to fund repayment of the €655 million secured loan arranged upon the joint venture's 2018 formation. The increased size of the new financing reflects an increase in the underwritten value of the facilities over the past seven years rather than an increase in loan-to-value ratio. Notably, annual cash rent from the JV has increased by nearly €20 million since its formation, approximately equal to the expected increase in market interest expense from the new loan.
Edward K. Aldag, Jr., MPT's Chairman, President and Chief Executive Officer, said, 'Given the tremendous market demand for MPT's hospital real estate from sophisticated institutional investors, we continue to benefit from access to low-cost capital. This transaction, along with others recently executed, reinforces the value of $15 billion in hospital real estate around the world, the importance of our CPI-linked rent escalators as a natural hedge against inflation, and our confidence in the balance sheet flexibility available to us moving forward.'
'This transaction demonstrates the long-term appeal of high-quality healthcare infrastructure in Europe. We are proud to co-own a portfolio that combines operational excellence, tenant resilience, and strong societal impact. This refinancing also confirms our ability to deliver sustainable returns for our investors across cycles,' said Ronan Bodere, Managing Director of Praemia REIM Luxembourg.
Eastdil Secured and Goodwin Procter LLP acted as financial and legal advisor, respectively, for the JV.
About Medical Properties Trust, Inc.
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 hospital real estate with 393 facilities and approximately 39,000 licensed beds in nine countries and across three continents as of March 31, 2025. 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 www.medicalpropertiestrust.com.
About Praemia REIM
Praemia REIM is a leading European real estate asset manager with over €36 billion in assets under management and a portfolio of more than 1,600 buildings spanning 11 countries. The firm designs and manages a broad range of real estate investment solutions covering the office, healthcare and education, retail, residential and hospitality sectors, with a strong commitment to long-term performance and ESG integration. Its team of over 450 employees are located across offices in France, Germany, Luxembourg, Italy, Spain, Singapore and the United Kingdom. Further information is available at www.praemiareim.com. Follow Praemia REIM on LinkedIn.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as 'may', 'will', 'would', 'could', 'expect', 'intend', 'plan', 'estimate', 'target', 'anticipate', 'believe', 'objectives', 'outlook', 'guidance' or other similar words, and include statements regarding our strategies, objectives, asset sales and other liquidity transactions (including the use of proceeds thereof), expected re-tenanting of facilities and any related regulatory approvals, and expected outcomes from Prospect's Chapter 11 restructuring process. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that the outcome and terms of the bankruptcy restructuring of Prospect will not be consistent with those anticipated by the Company; (ii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (iii) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (iv) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (v) MPT's ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact its ability to pay down, refinance, restructure or extend its indebtedness as it becomes due, or pursue acquisition and development opportunities; (vi) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (vii) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (viii) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; and (ix) the risks and uncertainties of litigation or other regulatory proceedings.
The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned 'Risk Factors' in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.