Temasek and TPG-backed hospital operator Manipal Health Enterprises has secured a large standalone hospital facility in Bengaluru through a long-term lease agreement spanning nearly 30 years underlining its aggressive expansion strategy in India’s healthcare sector. The transaction involves a hospital building spread across approximately 2.4 lakh square feet in the Konankunte area of south Bengaluru. According to property documents the lease tenure is 29 years and 11 months with the total rental commitment estimated at around ₹500 crore based on the initial rental structure excluding future escalations and other charges. The facility comprises three basement levels, a ground floor and nine upper floors and has been developed specifically for hospital operations.
Under the agreement registered in May, Manipal Health will pay an initial monthly rent of about ₹1.37 crore and has provided a security deposit of ₹16.42 crore. The lease includes 211 car parking spaces while rent payments will commence after a four-month rent-free period granted under the contract.
The latest deal comes just weeks after the healthcare chain leased another multi-speciality hospital property measuring around 2.45 lakh square feet in Bengaluru’s Yelahanka area under a separate nearly 30-year agreement. The company had also recently acquired a hospital asset in Mumbai’s Andheri suburb for ₹495 crore reflecting its continued focus on strengthening its presence in key urban markets.
Manipal Hospitals, one of India’s largest healthcare providers has significantly expanded its national footprint through acquisitions and capacity additions in recent years. Following the acquisitions of AMRI Hospitals and Medica, the network now operates 37 hospitals across 19 cities with a capacity of more than 10,500 beds and serves over seven million patients annually.
Industry experts say such long-duration lease agreements are becoming increasingly common in healthcare real estate as hospital operators seek operational stability while avoiding the large upfront capital costs associated with owning institutional-grade assets. The transaction also highlights the growing demand for healthcare infrastructure in Bengaluru, one of India’s fastest-growing urban healthcare markets. The new facility is expected to enhance Manipal Health’s service capacity in Bengaluru and support its long-term growth plans amid rising demand for tertiary and quaternary healthcare services across the country.