DLF, Fortis plan JV to set up 15 hospitals in five years

DLF, Fortis plan JV to set up 15 hospitals in five years

New Delhi, 6 September Real estate giant DLF and Ranbaxy promoter group company Fortis Healthcare have entered into an agreement to set up 15 hospitals in the next five years, which could entail an investment of 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 to set up the hospitals. The healthcare firm may hold majority stake of 74% and the real estate major investing 26% of the share capital.

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, Fortis Managing Director Shivinder Mohan Singh 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, but it could be to the tune of 200 crore per hospital in the second phase.

The two companies are even exploring other options beside equity partnerships like buy-outs and management contract, the sources added.

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