Medical Properties Trust Sells 3 Rehab Facilities to Vibra Healthcare for $90M

Medical Properties Trust Inc., a healthcare REIT, is selling three inpatient rehabilitation facilities to Vibra Healthcare L.LC. for $90 million. As part of the deal, Vibra, which currently manages the properties, must also pay MPT $17 million for a total deal worth $107 million to MPT.The definitive agreement calls for Vibra to pay a one-time early termination fee of $7 million to MPT and make a $10 million early principal payment on the balance of an existing loan, according to a release from Medical Properties Trust. When the deal closes sometime in the second quarter, Vibra, a specialty health care provider based in Mechanicsburg, Penn., is expected to resell the properties to a third party. The properties are: Marlton Rehabilitation Hospital in Marlton, N.J.; San Joaquin Valley Rehabilitation Hospital in Fresno, Calif.; and Southern Kentucky Rehabilitation Hospital in Bowling Green, Ky.MPT bought the properties in 2004. The news release noted that they are being sold at a cap rate substantially lower than the cap rate when purchased. The exact cap rates were not released.“We believe that the purchase cap rate being paid is a fair indicator to the market of the value of a large portion of the remaining properties in our portfolio,” stated Edward Aldag, chairman, president & CEO of Medical Properties Trust.Although it did not provide details, MPT also noted in the release that it had reached a non-binding agreement to buy three post acute care facilities from two third parties and lease them to Vibra for an aggregate of about $55 million. MPT said that if both transactions go through as proposed, MPT’s investments in Vibra assets would drop from 24 percent to 20 percent.Based in Birmingham, Ala., MPT is a self-advised REIT that acquires and develops net-leased medical properties. The REIT made about $316 million in acquisitions last year and is aiming to complete at least $200 million this year, according to its year-end financial report. The report released Jan. 31 also noted that MPT had entered into a new $220 million credit facility in the fourth quarter. That facility, funded by six banks, can be increased to $350 million. “Our new facility gives us sufficient liquidity to maintain our aggressive growth targets during 2008,” Aldag stated at that time.Among the acquisitions made in 2007 were three acute care hospital facilities purchased for $100 million in the summer, according to an Aug. 14, 2007 CPN report. Two of the properties were Twelve Oaks Medical Center in Houston and Shasta Regional Medical Center in Redding, Calif., both operated by Hospital Partners of America of Charlotte, N.C.