10:26 AM EDT, 04/15/2024 (MT Newswires) -- Medical Properties Trust ( MPW ) shares jumped more than 19% in recent trading on Monday after announcing late Friday that it has sold its majority stake in five Utah hospitals to a new joint venture with an investment fund linked to an unnamed asset manager.

The company is keeping an about 25% stake in the venture, while the fund bought a nearly 75% stake for $886 million, which fully validated Medical Properties' ( MPW ) underwritten lease base of around $1.2 billion.

Concurrent with the deal completion, the venture placed non-recourse secured financing that provided $190 million of additional cash to Medical Properties ( MPW ).

The two deals delivered about $1.1 billion of cash proceeds to Medical Properties ( MPW ) before costs and reserves, the company said. The proceeds will be used to cut debt, as well as for general corporate purposes.