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Physicians Realty Trust discloses $725M deal with CHI: 6 things to know

Physicians Realty Trust, a self-managed healthcare properties REIT, is looking to boost its portfolio with the addition of 52 medical office facilities owned by Englewood, Colo.-based based Catholic Health Initiatives.

Here are six things to know about the transaction.

1. Physicians Realty Trust has executed purchase and sale agreements for 47 medical offices and signed a letter of intent for three medical facilities owned by CHI. Physicians Realty Trust is also negotiating to purchase two additional CHI facilities.

2. The facilities are located across 10 states.

3. The total purchase price for the 52 medical offices is approximately $724.9 million, which includes $32.9 million of future capital improvements.

4. Physicians Realty Trust expects the first tranche to close this month, for a total purchase price of about $202 million. The second tranche is expected to close before the end of the second quarter of 2016, for a total purchase price of approximately $490 million.

5. "In the last few years, many large organizations — including health systems — have taken advantage of favorable market conditions and the strong demand for healthcare real estate," Dean Swindle, president of enterprise business lines and CFO of CHI told Becker's. "This transaction allows us to rebalance our owned and leased real-estate portfolio and strengthen our balance sheet. We have sharpened our operational and financial focus through a more-strategic management of these properties."

6. Regarding the transaction, Physicians Realty Trust President and CEO John Thomas said, "We are honored and humbled to be selected to monetize these facilities and enhance CHI's healthcare real estate service delivery platform through this partnership."

More articles on healthcare industry transactions:

CHS acquires majority stake in Arkansas hospital
HCA completes purchase of bankrupt Texas hospital
Alpena Regional joins MidMichigan Health

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