Manipal Health Secures Massive 30-Year Lease for Bengaluru Hospital, ETHealthworld
Mumbai: Temasek and TPG-backed hospital operator Manipal Health Enterprises has picked up a standalone hospital building spread over 240,000 sq ft in Bengaluru’s Konankunte area through a long-term lease spanning over nearly 30 years.
Based on the starting monthly rent, the total rental commitment over the 29-year-and-11-month lease tenure works out to around Rs 500 crore, excluding any future escalations and other charges.
The transaction involves a standalone building comprising three basement levels, a ground floor and nine upper floors at Konankunte Village in Uttarahalli Hobli of south Bengaluru.
The latest transaction comes within weeks of Manipal Health securing a 2.45 lakh sq ft multi-speciality hospital building in Bengaluru’s Yelahanka area through a separate long-term lease transaction. Prior to that, the company acquired a hospital property in Mumbai’s Andheri suburb for Rs 495 crore, marking one of the country’s biggest healthcare real estate transactions this year.
Under the agreement registered on May 18, Manipal Health will pay a starting monthly rent of Rs 1.37 crore, translating into a rental rate of about Rs 57 per sq ft per month, showed the documents accessed through CRE Matrix, a realty data analytics platform.
The company has provided a security deposit of Rs 16.42 crore and secured 211 car parking slots as part of the transaction. While the lease commences from May 21, 2026, rent payments will begin from September 21 following a four-month rent-free period provided under the agreement.
In 2021, the company had entered into an agreement with the developer to build the property as per their specifications for its usage as a hospital and is now operational.
ET’s email query to Manipal Health Enterprises remained unanswered until the time of going to press.
Manipal Hospitals, among India’s largest healthcare providers, widened its national footprint through the acquisitions of AMRI Hospitals in September 2023 and Medica in April 2024. The combined network operates 37 hospitals across 19 cities with capacity of more than 10,500 beds and serves over 7 million patients annually.
The listed healthcare operator has been expanding through acquisitions, brownfield projects and capacity additions across major urban markets amid rising demand for tertiary and quaternary care facilities.
The transaction highlights the increasing preference among healthcare operators for long-term occupancy of institutional-grade assets in major urban markets. Bengaluru continues to see strong demand across healthcare, office and residential real estate segments, supported by sustained economic and population growth.
Large-format hospital assets typically involve long-duration lease structures given the significant investments required for medical equipment, fit-outs and operational infrastructure. Such arrangements provide occupiers with long-term business certainty while ensuring stable rental income for property owners.
