Real estate major DLF and Ranbaxy group company Fortis Healthcare have entered into a joint venture agreement for setting up 15 hospitals over the next five years. The total investment on these 15 hospitals is likely to be to the tune of Rs 3,000 crore. The hospitals will be set up in townships being developed by DLF, and will belong to the super-speciality category. They are likely to be of 250-400 bed capacity with a minimum built-up area of 20,000 sq m. According to an industry source, while Fortis is likely to hold a 74 per cent stake in the joint venture, DLF will own a 26 per cent stake. When contacted Fortis Managing Director Shivinder Mohan Singh said: “We are still in dialogue with DLF and have not firmed up any plan yet.”The industry source, however, added that each hospital was likely to require an investment of about Rs 200 crore. Beside equity partnerships, the two partners could also go in for buy-outs and management contract agreements. The agreement between DLF and Fortis is also not exclusive. DLF could opt for multiple operators to manage and run the hospitals within its townships (other than the 15 agreed upon). Fortis already has a tie up with another developer, Ansal API, for setting up a Rs 500 crore medicity at Sushant Golf City, Lucknow. Fortis at present runs 12 hospitals in the country. It plans to invest Rs 1,800 crore on its pan-India expansion. It aims to develop 10 medicities over the next decade. A medicity typically includes a super-speciality hospital, medical and dental college, institutes providing courses in para-medicine and allied medicine, and research facilities. Fortis has already identified a few cities for setting up medicities: Gurgaon, Lucknow, Jaipur, Ahmedabad, and two cities in Punjab.Healthy realty• Each hospital will belong to the super-speciality category and need Rs 200 cr investment • Fortis likely to have 74% stake and DLF 26%• Pact not exclusive; in future each partner may ally withother players
