An American property group is in the final stages of securing a £650m deal to refinance debt tied to numerous British hospitals. According to sources familiar with the matter, Medical Properties Trust (MPT), a New York-based company, is set to announce an agreement with a consortium of financial institutions.
This deal will cover 27 hospitals located throughout the UK, all of which are operated by Circle Health under long-term leases. The $800m refinancing is expected to be one of the largest transactions in the UK healthcare sector in recent months.
Insiders have revealed that the deal is being led by Song Capital, a UK and European investment firm, with the support of Aviva, Canada Life, and Phoenix Group. MPT is a major player in the global healthcare real estate market, with a portfolio of over 430 properties valued at more than $17bn.
In early 2021, Circle Health’s operating business was acquired by PureHealth, a company backed by Abu Dhabi. The transaction, which was completed earlier this year, was valued at $1.2bn.
Sources have also disclosed that the financing has attracted significant interest from Song Capital’s investors. The firm, founded by Dan MacKinnon and Tom Pritchard, has made strategic investments in the healthcare and leisure industries. Last year, it provided Nuffield Health, the UK’s largest healthcare charity, with approximately £250m in real estate financing secured against 10 hospitals.
MPT’s stock market value has experienced a sharp decline in recent times, falling by almost 40% over the past year alone. The company’s current market capitalisation stands at just under $3bn.
It is understood that Rothschild is advising Song Capital on the deal. However, neither Song nor MPT has responded to requests for comment as of Thursday.
This impending refinancing deal marks a significant development in the UK healthcare sector and demonstrates the continued interest of investors in this industry.