“The in-place partnership agreements we now have with Macquarie offer both parties opportunities for efficient follow-on co-investments,” said Edward Aldag Jr., MPT’s chairman, president and chief executive officer, in a statement. In addition, this repeatable model provides an attractive addition to the array of efficient equity capital options available to fund our robust and accretive investment pipeline.”

MPT collected approximately $1.3 billion in total cash proceeds from the deal, including non-recourse secured debt, with virtually all of it used to repay debt. Its investment basis consists of roughly $1.2 billion, approximately $600 million gained on real estate, and collected cash rent and interest of more than $475 million over more than five years together. It has an unlevered internal rate of return of roughly 14%.

American commercial real estate services and investment firm CBRE Group advised MPT to first source a new equity partner to recapitalize the assets. CBRE then sourced the debt financing for the newly formed joint venture ownership entity, reported the Boston Real Estate Times.

“This was a rare opportunity for an investor to partner with MPT to recapitalize the largest acute care hospital portfolio to come to market,” said CBRE vice chairman Lee Asher. “These are unique inpatient assets in critical healthcare markets in Massachusetts, and we believe the newly formed joint venture will successfully support Steward’s hospital operations and mission to deliver the highest quality care to its patients.”

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