Physicians Realty Trust buys Catholic Health Initiatives facilities in $725 million deal
Purchase price includes $32.9 million in future capital improvements, most of which should be done in next 5 years, company says.
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Physicians Realty Trust, a healthcare properties REIT, will buy 52 medical office facilities in a deal worth $724.9 million, the Trust said.
The purchased buildings amount to nearly 3.2 million square feet of rentable space in 10 states. The buildings are controlled by regional health systems affiliated with CHI, and because of CHI's sponsorship by the Catholic church, the deal requires Vatican approval.
The purchase price actually includes $32.9 million in future capital improvements, most of which are expected to be completed in the next five years. The Trust said they'll be financing the deal using their unsecured line of credit, proceeds from their offering of common shares of the company, as well as a secured commitment for a $400 million 1 year bridge loan from KeyBank.
[Also: Catholic Health Initiatives, Aetna launch Nebraska's first accountable care organization plan]
The transaction will be completed in two stages, one expected to close this month with a total purchase price of $202 million. The second stage, which is expected to include most or all of the remaining properties should close at the end of this year's second quarter, with a total purchase price of $490 million.
Catholic Health Initiatives Catholic Health is the fifth largest nonprofit health system in the United States, comprised of more than 103 hospitals, 3,950 affiliated physicians, and 95,000 employees. Last year, these providers served more than 16 million outpatient visitors and 500,000 inpatient patients. CHI brought in more than $15 billion in revenue, Thomas said in a statement.
Twitter: @BethJSanborn
