Temasek-backed Manipal Health Enterprises, a hospital chain operated by Temasek-backed TPG, has leased a multi-speciality building of 2.45 lakh square feet in Bengaluru’s Yelahanka district. The total rental cost is estimated to be around Rs 816.12 cr over the lease term after factoring scheduled rent increases. The property consists of three basement floors, a first floor and ten upper floors. Manipal Health Enterprises is paying a monthly rent starting at Rs 1,27 crore. This translates into Rs 52 per square foot per month. In connection with the transaction, Manipal Health Enterprises has paid a security of Rs 7.64 billion. In January 2010, the company bought a hospital building in Mumbai’s west suburb Andheri, for Rs. 495 crore. This was one of India’s largest healthcare real-estate transactions of the year. This multi-specialty building, built by JKC Varma & Other in Venkatala near Yelahanka was leased to the healthcare operator under a new lease agreement, for a duration of 29 years and eleven months. These documents were accessed via Propstack, a data platform that analyzes realty. The lease agreement stipulates a 10% rent increase in the sixth-year. Rents will then increase by 15 percent every three years until the end of the lease, which would result in a significant rental increase over the next three decades.

Based upon the initial rent, and the agreed-upon escalation scheme, the total rental expenditure over the 29 years and 11 months lease term comes to about Rs 816.12 Crore. Manipal Health Enterprises is expanding in major Indian cities by acquiring brownfield sites and expanding existing facilities. The ET’s email to Manipal Health Enterprises was not answered until the time of publication. The transaction demonstrates the preference for long-term occupancy by healthcare operators in urban markets. Bengaluru is still experiencing strong demand in the office, residential and healthcare real estate segments. This is due to sustained population and economic growth.

The large-format assets of hospitals are usually leased for a long time due to the substantial investments in medical equipment, fit outs and operational infrastructure. These agreements provide tenants with long-term security and stability in business, while also ensuring a stable rental income for the property owner. The expansion of hospital networks in India, the rise in healthcare demand, and the need for long-term occupancy are driving this sector to grow at a rid rate.

Because hospitals require substantial investments in equipment and fittings, long-term leases are essential for stability. These large-scale transactions also show the convergence between healthcare and realty, as operators are increasingly securing strategic assets in key cities to support their future expansion.

Published on Jun 5, 2026, at 7:46 AM (IST)

Join our community of over 2 million industry professionals. Subscribe to our Newsletter for the latest industry insights & analyses.

You can now get all the information about ETHealthworld on your mobile!