Fengate Asset Management acquired 24 medical outpatient facilities from a major U.S. nonprofit health system under a sale-leaseback agreement, adding more than 900,000 square feet of medical space across two states, according to a Sept. 11 news release, from the company.
The seller was not disclosed.
“Fengate is proud to partner with one of the largest and strongest not-for-profit health systems in the U.S. on this transaction alongside our partner, MedCraft,” Mac Bell, managing director and head of social and transportation at Fengate, said in the release.
Sale leasebacks have become an increasingly utilized option for ASCs looking to improve liquidity and boost valuation. In such an agreement, an ASC sells its facility to a third-party investor or real estate investment trust and signs a lease, typically 12 to 15 years, to remain in the space. The ASC retains operational control of the surgery business while offloading the burden of property ownership.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
