Medical Properties Trust, Inc. Completes Acquisition in Southern California.BIRMINGHAM, Ala. -- Desert Valley Hospital Desert Valley Hospital (DVH) is an 83 bed acute care facility in Victorville, California, USA. DVH is owned and operated by Prime Healthcare Services, Inc. (PHS), a hospital management company located in Victorville. PHS was founded in 2001 by Prem Reddy, M.D., F.A.C.C., F.C. and Medical Office Building Are Part of Previously Announced Commitments of $83 Million Medical Properties Trust, Inc. (MPT MPT Maryland Public Television MPT Modern Portfolio Theory (investing) MPT Ministry of Posts and Telecommunications MPT Message-Passing Toolkit MPT Master of Physical Therapy MPT Mitochondrial Permeability Transition ) announced today that it has completed the acquisition of Desert Valley Hospital in Victorville, California Victorville is a city located in the Victor Valley of western San Bernardino County, California, USA. According to the U.S. Census Bureau's 2000 census, the city has a total population of 64,029. . The 83-bed regional acute care facility with an integrated medical office building was acquired for approximately $28 million and leased back to the operator under a 15-year net lease. The tenant entered into an additional commitment with MPT for an expansion of the facility that is expected to cost approximately $20 million. This acquisition was funded through MPT's recently closed term loan with Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. . Desert Valley Hospital has been successfully operated by a locally owned hospital company for several years. The lease provides for an initial annual rental rate of 10% of MPT's acquisition cost, which will increase annually at the greater of 2% or a defined inflation rate. The agreement also provides the tenant with certain repurchase options beginning in the third year of the lease, plus additional options for three five-year extensions to the original lease, or a total potential lease term of 30 years. Desert Valley Hospital serves the population of Victorville, California, and the surrounding high desert area. "The acquisition of Desert Valley Hospital is another prime example of Medical Properties Trust's carefully designed strategy of providing lease financing to successful local and regional healthcare companies across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ," said Edward K. Aldag, Jr., MPT's chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Through such financing arrangements, MPT helps successful healthcare operators unlock the value of their real estate assets and redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. those assets in new or expanded facilities and new technologies that can make such operators more competitive and more successful. As with each of our investments, we expect the relationship with our new tenant to be long and fruitful, and one that will help Desert Valley Hospital grow and better serve its markets." ABOUT MEDICAL PROPERTIES TRUST, INC. Medical Properties Trust, Inc. is a Birmingham, Alabama Birmingham (pronounced [ˈbɝmɪŋˌhæm]) is the largest city in the U.S. state of Alabama and is the county seat of Jefferson County. based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery and other single-discipline healthcare facilities, such as heart hospitals, orthopedic hospitals and cancer centers. The statements in this press release that are forward looking are based upon current expectations and actual results or future events may differ materially. Such statements include, but are not limited to, MPT's relationship with its new tenant. Words such as "expects," "believes," "anticipates," "intends," "will," "should" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties that could cause actual results or future events to differ materially. |
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