BAYONNE — In a press released issued Wednesday, Feb. 23, management of Bayonne Medical Center said the hospital has entered into a long-term real estate agreement with Medical Properties Trust (MPT), a major US real estate investment trust headquartered in Birmington, Ala.
MPT has now purchased the buildings and property in which Bayonne Medical Center is located for $58 million and the hospital has a minimum operating lease of 45 years, according to the press release.
Some people connected with BMC said this deal is likely tied to financing of a possible upcoming purchase of former Hoboken University Medical Center, but could not elaborate as to how. Some principles of BMC are in negotiations with Hoboken for the purchase of the Hoboken hospital.
The press release noted, “Under the terms of the agreement, BMC refinanced its existing debt and in addition as access to a significant amount of capital for continued improvement in its infrastructure and essential projects including a major remodeling of its emergency department.”
This confirms a news release last week which had named a hospital fitting BMC’s profile part of back-to-back deals totaling $88 million that also included the purchase of a hospital in North Texas.
MPT, according to the BMC release, has assets in excess of $1 billion and is a public traded trust, owning buildings and property of 58 other hospitals in 22 states across the U.S. It maintains long term leases with those hospitals.
“Our agreement with MPT is a win-win transaction for MPT, BMC and the greater Bayonne community,” BMC management said in its release. “The success of this transition for MPT is tied to the continued success of Bayonne Medical Center and its efforts to grow the hospital’s operation. The hospital and community will benefit greatly from the investment in infrastructure and enhancements in care.”
One of the major challenges facing the state budget and New Jersey hospitals, the release went on to say, is the need for capital, and the investment of outside capital in New Jersey by MPT is very significant and positive for the state.
“We hope this is part of a trend of outside capital believing in New Jersey to the great place in which to invest,” BMC management said.