Aster DM Healthcare Expands Capacity with New 430-Bed Hospital Lease.

Aster DM Healthcare Limited announced recently, May 6, 2025, that it has entered into a 30-year lease agreement for a property situated on Sarjapur Road, Bengaluru, Karnataka. The company plans to develop a new multi-specialty hospital on the leased premises, significantly expanding its presence in the region.

The upcoming hospital is projected to have a total bed capacity of approximately 430 beds, with the expansion planned in two phases. The first phase will see the addition of 300 beds in the financial year 2027, followed by another 130 beds in FY29. Aster DM Healthcare anticipates an investment of ₹480 crore for this ambitious project, which will be funded through a combination of bank loans and internal accruals.

The lease agreement includes a 30-year lock-in period for the lessor and a 12-year lock-in period for Aster DM Healthcare from the lease commencement date. The company will pay rent based on the per square foot of chargeable area, along with applicable taxes, and has provided an interest-free refundable security deposit of ₹58.65 crores.

Aster DM Healthcare highlighted the strategic importance of establishing a comprehensive multi-specialty hospital in South-East Bangalore. The region is experiencing rapid population growth driven by urbanization and a burgeoning middle class with increasing disposable income, creating a significant demand for quality healthcare services. Furthermore, Sarjapur is emerging as the next major IT hub in Bangalore, making it an ideal location for a specialized hospital offering comprehensive cancer care and other multi-specialty services. The company believes this project is strategically positioned to meet an essential market need, capitalizing on its proximity to established IT corridors.