Birmingham, Ala.-based Medical Properties Trust has completed the sale of seven Australian hospitals for more than $475 million, with proceeds used to reduce its Australian term loan.
The real estate investment trust expects to close the remaining $306 million in property sales and debt repayment this quarter. The company said the 5.7 percent cap rate implied in the $781 million valuation of the Australian portfolio provides a strong read-through for similar assets in its U.S. and Western Europe portfolios.
Australian private equity firm HMC Capital purchased the hospital properties, according to the Financial Review. HMC Capital said demand for hospital assets remains resilient.