Manipal Health Signs 816 Cr Bengaluru Hospital Lease

Synopsis: Manipal Health Enterprises leases a 2.45 lakh sq. ft. hospital facility in Bengaluru’s Yelahanka for nearly 30 years, with the total lease value estimated at ₹816 crore, supporting its expansion strategy.

Manipal Health Enterprises has strengthened its presence in Bengaluru by leasing a multi-speciality hospital building in the city’s Yelahanka area through a long-term agreement valued at approximately ₹816 crore. The lease, which spans nearly 30 years, marks one of the most significant healthcare real estate transactions in India and underscores the company’s continued expansion in key urban healthcare markets. 

According to property documents reviewed by real estate data firms, the facility comprises around 2.45 lakh square feet of built-up space, including three basement levels, a ground floor, and ten upper floors. The lease agreement commenced on November 1, 2025, and has been executed for a tenure of 29 years and 11 months. The property is located in Venkatala, Yelahanka, an area that has witnessed increasing healthcare and infrastructure development in recent years.

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Under the agreement, Manipal Health will pay an initial monthly rent of approximately ₹1.27 crore and has deposited a security amount of ₹7.64 crore. The contract includes periodic rent escalations, with a 10 percent increase scheduled in the sixth year, followed by a 15 percent increase every three years thereafter. These escalations contribute to the estimated total rental outgo of ₹816.12 crore over the lease tenure.

The transaction reflects a broader trend in India’s healthcare sector, where leading hospital operators are increasingly utilizing long-term leases to expand their footprint without acquiring properties outright. Such arrangements enable healthcare providers to accelerate expansion while optimizing capital allocation for medical infrastructure, technology, and patient care services.

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Backed by Temasek and TPG, Manipal Health has been actively expanding across major Indian cities through acquisitions and strategic real estate investments. The latest lease agreement is expected to enhance the company’s healthcare delivery capabilities in Bengaluru, one of India’s largest and fastest-growing healthcare markets.

The deal highlights the growing demand for specialized healthcare infrastructure and reinforces Bengaluru’s position as a key destination for healthcare investments and hospital expansion initiatives.