Australia-based asset manager HMC Capital is set to acquire 11 private hospitals from US-based Medical Properties Trust in a deal valued at A$1.2bn ($810m).

These 11 hospitals consist of four mental hospitals and seven acute care hospitals, Reuters reported.

Currently, they are leased and managed by Healthscope, an Australian healthcare company.

The hospitals will be separated between HealthCo Healthcare & Wellness Reit (HCW) of HMC and a new healthcare fund.

HMC Capital managing director and CEO David Di Pilla said: “HMC Capital is pleased to announce another major transaction for the group which delivers on sour strategy to deploy capital into high quality alternative assets with significant pricing power and development upside on behalf of our capital partners.

“Our partnership with Healthscope on this transaction enabled HMC Capital to shape a compelling transaction with a significantly improved tenant covenant and rental growth upside via CPI-linked indexation and higher development returns.”

HCW’s transformational purchase will be supported by A$320m ($214m) underwritten capital raise, with support from HMC as manager through A$123m ($82.56m) commitments in the entitlement offer.

HMC funding commitments are backed by more than A$350m ($234.93m) capacity following A$125m ($83.90m) fully underwritten institutional placement and indicative commitments to increase loan facilities.

Subject to regulatory approvals, the transaction is anticipated to finish in the second half of this year.

Medical Properties Trust chairman, president and CEO Edward Aldag, Jr said: “The sale of this portfolio by means of a competitive process, in the midst of an extraordinary disruption to global capital markets, demonstrates the breadth and resilience of demand for hospital infrastructure assets.”