DLF, Fortis to invest Rs 3,000cr for 15 hospitals

Real estate giant DLF and Ranbaxy promoter group company Fortis Healthcare have entered into an agreement to set up 15 hospitals at an investment of Rs 3,000 crore.

DLF and Fortis have signed an alliance agreement to develop about 15 'Centre of Excellence' hospitals in townships being developed by DLF in the first five years, industry sources said.

Under the agreement, the two companies could form a joint venture for the hospital projects. The healthcare firm may hold 74% stake, while the rest would lie with the realty major.

The hospitals are likely to be of 250-400 bed capacity with a minimum built up area of 20,000 sq mt, the sources added.

When contacted, Shivinder Mohan Singh, managing director, Fortis said: "We are still in dialogue with DLF, and have not firmed up any plan yet."

The sources, however, said while investment in the first phase could be minimal, it could be to the tune of Rs 200 crore per hospital in the second phase.

The two companies are even exploring other options besides equity partnerships like buyouts and management contracts, the sources added.

Fortis, at present, has 12 running hospitals with several more already in the pipeline. The company recently announced its plan to invest Rs 1,800 crore for pan-India expansion, including setting up a medicity in Gurgaon and 28 hospitals by 2010.