Manipal Health Enterprises, the Temasek- and TPG-backed healthcare provider, has secured a multi-speciality hospital property in Bengaluru’s Yelahanka locality through a long-term lease agreement spanning almost 30 years. Factoring in periodic rental escalations, the total lease commitment is estimated at approximately ₹816.12 crore.
The hospital facility, developed by JKC Varma & Other, is located in Venkatala, Yelahanka and covers around 2.45 lakh sq ft. The building consists of three basement levels, a ground floor, and ten upper floors. According to documents reviewed through real estate data platform Propstack, the lease tenure is 29 years and 11 months.
Under the agreement, Manipal Health will initially pay a monthly rent of ₹1.27 crore, equivalent to about ₹52 per sq ft. The company has also deposited ₹7.64 crore as security.
The lease structure includes a 10% rent increase in the sixth year, followed by 15% escalations every three years thereafter. These scheduled increases significantly raise the overall rental commitment across the lease term.
The transaction follows Manipal Health’s recent acquisition of a hospital property in Mumbai’s Andheri area for ₹495 crore, one of the largest healthcare real estate deals recorded in India this year.
Manipal Hospitals has been actively expanding its presence across the country through acquisitions, capacity additions, and development projects. The group strengthened its network through the acquisitions of AMRI Hospitals in September 2023 and Medica in April 2024. It currently operates 37 hospitals across 19 cities, with a combined capacity exceeding 10,500 beds and serving more than seven million patients annually.
The latest lease underscores the growing preference among healthcare operators for long-term occupation of high-quality institutional assets in major urban centres. Bengaluru continues to attract strong demand across healthcare, residential, and commercial real estate segments, supported by sustained economic growth and urban expansion.
Long-duration leases are particularly common in the healthcare sector due to the substantial capital investments required for medical equipment, infrastructure, and facility fit-outs. Such arrangements provide hospitals with operational stability while ensuring predictable rental income for property owners.
India’s healthcare real estate market is increasingly emerging as a prominent institutional asset class, driven by expanding hospital networks, rising demand for healthcare services, and the need for long-term occupancy. Large-scale transactions such as this also reflect the growing intersection between healthcare delivery and real estate investment as operators seek strategic locations to support future growth.
