Manipal Health Leases Bengaluru Hospital For ₹816 Crore, 30 Years

Manipal Health Enterprises Private Limited, backed by Temasek and TPG, has leased a multi-speciality hospital building in Bengaluru for approximately ₹816 crore. The lease has been executed for a tenure of 29 years and 11 months, according to documents accessed by Propstack.

The lease agreement began on November 1, 2025, and the property is located in Venkatala, Yelahanka. The building consists of three basement levels, a ground floor, and 10 upper floors, forming a large hospital infrastructure asset in the city.

Financial Structure And Lease Terms

Under the agreement, Manipal Health will pay a monthly rent of ₹1.27 crore, which translates to approximately ₹52 per sq ft per month. The company has also paid a security deposit of ₹7.64 crore for the property.

• Total lease value: ₹816 crore
• Lease tenure: 29 years 11 months
• Monthly rent: ₹1.27 crore
• Rent rate: ₹52 per sq ft
• Security deposit: ₹7.64 crore
• Location: Venkatala, Yelahanka, Bengaluru

Rent Escalation Structure

The agreement includes a structured escalation clause. Rent will increase by 10% in the sixth year, followed by a 15% increase every three years thereafter. This long-term escalation reflects sustained demand for healthcare infrastructure and the long-duration nature of hospital operations.

Shift Toward Asset-Light Healthcare Model

Industry experts note that healthcare providers are increasingly moving toward an asset-light model. Instead of purchasing land and constructing facilities, operators are opting for long-term Built-to-Suit (BTS) leases to expand more rapidly across major cities.

This approach allows hospital chains to avoid long construction timelines, preserve capital, and focus on medical services and technology investment rather than real estate ownership.

Other Healthcare Real Estate Transactions

Manipal Health Enterprises has also expanded its presence in Mumbai through major acquisitions. The company acquired a 752 sq m land parcel with a hospital building in Andheri for ₹495 crore, forming part of a larger ₹908 crore deal.

This followed an earlier acquisition of ₹415 crore for a portion of the same site. The Mumbai transaction included a built-up area of 20,663.80 sq m and involved a stamp duty payment of ₹29.22 crore.

Strategic Expansion Across Major Cities

Manipal Hospitals, backed by Temasek Holdings, continues to expand through acquisitions and long-term leases. In 2023, the group acquired an 84% stake in AMRI Hospitals Ltd, while Temasek invested $2 billion for a majority stake in Manipal Hospitals.

These transactions highlight a broader consolidation trend in India’s healthcare sector, combining acquisitions with long-term infrastructure leasing to support expansion in major urban markets.

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