Manipal Health takes Bengaluru hospital building on long-term lease

Hospital chain operator Manipal Health Enterprises has taken up a 245,000-sq ft multi-speciality hospital building in Bengaluru's Yelahanka area on lease for nearly 30 years, with the total rental outgo for the period estimated at about ₹816.1 crore after factoring in scheduled rent escalations.

The property comprises three basement levels, a ground floor and 10 upper floors.

Temasek and TPG-backed Manipal Health Enterprises will pay a starting monthly rent of ₹1.27 crore, translating into a rental rate of ₹52 per sq ft per month. As part of the transaction, the company has provided a security deposit of ₹7.64 crore, documents accessed through Propstack, a realty data analytics platform, showed.


ET's email query to Manipal Health Enterprises remained unanswered until as of press time. Earlier this month, Manipal Health acquired a hospital property in Mumbai's western suburb of Andheri for ₹495 crore, marking one of the country's biggest real estate transactions in the country's healthcare sector this year.

The healthcare operator has leased this multi-speciality hospital building at Venkatala, Yelahanka, developed by JKC Varma & Other, under a fresh lease agreement for a tenure of 29 years and 11 months, showed documents accessed through Propstack.

The lease agreement provides for a rent escalation of 10% in the sixth year.