The Brentwood-based hospital chain LifePoint Health plans to sell the real estate of 10 hospitals to a real estate trust, and lease back the space.
Birmingham-based real estate trust Medical Properties Trust will buy the hospitals for $700 million. The companies expect the deal to close in late 2019 or early 2020.
The hospitals are located in six different markets. LifePoint operates more than 80 facilities in 29 states.
“This sale-leaseback transaction further solidifies our existing relationship with a proven partner, and allows us to stay focused on operations and the delivery of high quality patient care,” LifePoint Health CEO David Dill said, according to a press release.
Medical Properties Trust already owns six properties managed by LifePoint in Arkansas, Idaho, South Carolina, Washington and Oregon.
The lease covering all 10 facilities will have an initial term of 20 years with two five-year extension options.
Medical Properties Trust announced a public offering of 50 million shares of its stock to fund part of the purchase.
After this transaction, Medical Properties Trust will have a portfolio of facilities with 40,000 beds in the U.S., Europe and Australia worth almost $14 billion.