Press Release 07 January, 2021

Medical Properties Trust To Acquire £800 Million Portfolio Of Behavioral Hospitals In The UK

Goodwin London’s REI team has advised client Medical Properties Trust, Inc. (“MPT”) (NYSE: MPW) in respect of its agreement to acquire a portfolio of select behavioral health facilities, and their concurrent leaseback, from the leading UK behavioral health provider The Priory Group. The price to be paid for the acquisition totals £800 million. In a related transaction, affiliates of Waterland Private Equity will acquire The Priory Group from Acadia Healthcare Inc.

As part of this transaction, MPT will advance the following loans to Waterland to fund Waterland’s acquisition of The Priory Group:

  1. A £800 million secured interim loan (to be offset against the purchase price payable by MPT pursuant to the sale-leaseback transactions); and
  2. A £250 million short-term bridge loan.

MPT will also acquire a 9.9% indirect equity interest in The Priory Group operations.

Goodwin's REIT Capital Markets group in New York also represented MPT in its underwritten public follow-on offering of up to approximately $710 million, the net proceeds of which will be used by MPT to help fund the Priory Group transactions.

The cross practice Goodwin team advising MPT on this transaction comprised David EvansJames SpencePaul LyonsRichard SempleRob YoungAdnan Bhaiji and Amy Francis, all Goodwin London, with US law advice from Yoel Kranz and Patrick Wilson, Goodwin New York.