The London and Frankfurt Real Estate Industry teams represented Medical Properties Trust, Inc., a U.S. public REIT (“MPT”) (NYSE: MPW) in its €1.635 billion joint venture agreement with Primonial Group pursuant to which a fund managed by Primonial Group will acquire a 50% interest in an MPT portfolio of 71 post-acute hospitals throughout Germany. MPT will retain a 50% interest in the portfolio through the joint venture and an MPT affiliate will continue to manage the facilities.
At closing, Primonial Group will acquire its interest in the joint venture for cash, and a bank syndicate is expected to provide secured financing. Total expected proceeds to MPT, including its portion of the secured debt, will be approximately €1.14 billion. Closing of the transaction is conditioned on customary conditions, including approval of the German Federal Cartel Office and completion of definitive documentation concerning secured financing, and is expected during the third quarter of 2018.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities.
The Goodwin team was led by London partners David Evans and James Spence and included associates Melissa Wilkins, Samantha Lamontagne and Katie Leah. In Frankfurt, the team was led by partners Stephan Kock, Marc Bohne and Heiko Penndorf, associates Matthias Rüdt von Collenberg, Christopher Jeschor and Felix Krueger, transaction executive Dimitar Morfov, paralegal Helena Velimirovic and trainee Mathias Susnik. The U.S. team was led by partner Yoel Kranz.
Arendt & Medernach S.A. (“A&M”) advised MPT on the Luxembourg law aspects of this joint venture. The A&M team was led by Laurent Schummer and Michael Jonas and included associates David Al Mari, Claire Anxionnat and Charles Ries and trainee Hugo Legendre.
For additional details on the joint venture, please read the press release.