GFH Financial Group, a Bahrain-based investment firm, has purchased a portfolio of 11 medical office buildings for $400 million. The assets are spread across California, Texas, Maryland and Louisiana and have a total of 1 million square feet. The price breaks out to approximately $400 per square foot.
This portfolio’s properties are anchored by Baylor Scott & White, Texas A&M Health Science Center, Texas Tech University, Memorial Hermann and Tidal Health. GFH said in its release announcing the deal that the portfolio has been performing well, “with 99% rent collection during the COVID-19 pandemic.” The assets also house different specialty providers, positioning them for high occupancy and rent growth, the release said.
The investment capitalizes on the joint venture partnership with Big Sky Medical (Big Sky), an asset management platform focusing on medical assets with a proven track record of acquiring and managing healthcare properties. GFH’s partnership with Big Sky has already resulted in a number of acquisitions totaling approximately $500 million, in the past six months. This transaction is the third in a series of joint acquisitions for the two companies.
To date, GFH has built a portfolio of assets in the U.S. medical office building sector valued at $1 billion. Back in December, the firm purchased another portfolio of 11 medical office buildings for $200 million. This portfolio is spread across seven states, North Carolina, South Carolina, Georgia, Utah, Wisconsin, Ohio and Texas, and consists of 400,000 square feet of space. The portfolio comprises assets that are leased to some of the largest names in U.S. healthcare, including Cleveland Clinic, Texas A&M Health Science Center, Novant Health, Spartanburg Regional Healthcare System, Texas Health Resources and Baylor Scott & White Health.
