Mental healthcare provider the Priory Group has agreed an £800 million sale-and-leaseback deal with Medical Properties Trust as part of its recent £1.08 billion sale to Dutch private equity firm Waterland, the Financial Times has reported.

Priory agreed an £800 million sale-and-leaseback deal of around 40 of its hospitals to US property fund, the Medical Properties Trust as part of the deal. This will increase the company’s rent bill by around £50 million a year, with 2% annual increases built into the structure.

Medical Properties Trust has been among the most active of the US property investors in the UK market in recent times, following its backing of Circle Health’s acquisition of BMI Healthcare and its hospital estate in 2020.

Date published: February 9, 2021

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