Manipal Health Enterprises Pvt. Ltd., a leading healthcare provider backed by Temasek, has entered into a nearly 30-year lease agreement for a multi-speciality hospital facility in Bengaluru. According to property records reviewed by Propstack, the transaction carries an estimated value of around ₹816 crore.
The hospital property, situated in Venkatala, Yelahanka, consists of three basement levels, a ground floor, and ten upper floors. The lease became effective on November 1, 2025, and will remain in force for 29 years and 11 months. The property owners are listed as JKC Varma and others.
As part of the agreement, Manipal Health will pay a monthly rental of ₹1.27 crore, equivalent to approximately ₹52 per sq. ft. per month. The company has also deposited ₹7.64 crore as security. Rental revisions have been built into the contract, with a 10% increase scheduled in the sixth year, followed by a 15% escalation every three years thereafter.
Industry experts view the deal as part of a broader shift in healthcare infrastructure strategy. Large hospital chains are increasingly combining owned facilities with long-term leased assets to accelerate expansion across major cities.
“Historically, healthcare providers generally preferred a heavy-asset model, often buying land and building properties directly. However, to rapidly scale up and meet regional bed deficits, we may be seeing a strategic shift in which India’s top healthcare chains are pivoting toward an asset-light strategy,” said Raja Seetharaman, co-founder, Propstack.
By adopting long-duration Built-to-Suit (BTS) leasing arrangements, healthcare operators can potentially reduce capital expenditure, avoid lengthy construction timelines, and focus more resources on medical technology, clinical services, and patient care, he added.
Expanding Healthcare Real Estate Portfolio
The Bengaluru lease follows another significant transaction by Manipal Health in Mumbai. The company recently acquired a 752.77 sq. m. land parcel along with an existing hospital building in Andheri for ₹495 crore. The property includes a built-up area of 20,663.80 sq. m. and was registered on May 6, 2026, with stamp duty payments amounting to ₹29.22 crore.
The sellers in the transaction were Khubchandani Hospitals Private Limited, Khubchandani Properties and Investment Private Limited, and Perfect Realty Private Limited.
The latest purchase completes the second phase of a larger ₹908 crore acquisition programme, following an earlier ₹415 crore investment in part of the same property in 2024. The transaction highlights continued investor confidence in healthcare real estate across India’s major metropolitan markets.
Manipal Health’s recent Bengaluru lease and Mumbai acquisitions underline the growing importance of healthcare real estate in India’s expanding hospital sector. As demand for quality healthcare infrastructure rises, long-term leasing and strategic property acquisitions are emerging as key tools for hospital networks seeking faster and more capital-efficient growth.
Photo courtesy: manipalhospitals.com)