Local Firm Said Close to $1 Billion India Rollout

Pasadena-based Alexandria Real Estate Equities will spearhead a $1-billion venture in India, according to statements made by investment bankers affiliated with the New York Stock Exchange-listed multi-billion-dollar real estate investment trust (RIET).

The multinational company has targeted the real estate and health sector infrastructure and looks forward to acquire no less than 15 multi-specialty hospital properties in India.

“Alexandria is expected to collaborate with at least two major hospital chains in the Asian country,” says an investment banker who had the opportunity to meet company officials.

“This will allow them to own at least 10 hospitals in the near future,” he told the publication Business Standard.

The 1993-founded Alexandria, one of the top three REITs focusing on the life sciences sector in America, is understood to be in fairly advanced discussions with major healthcare players in India to either take over the real estate assets on which the hospitals stand or make significant inroads in putting up green field projects. Investment bankers close to the company in India say it is looking at focusing on 300-bed hospital and upwards to be part of its portfolio as it unveils its India game plan.

On an average the healthcare company, which runs the hospital, will pay an annual lease between 10-12.5 per cent of the cost of the hospital to the REIT in addition to a certain sum of upfront payment.

It was also learned that Alexandria is also looking at tier-2 cities in India as part of its roll-out. This, even as four major healthcare players — Apollo, Fortis, Max Group, Yashodha Group, Columbia Asia and Manipal Group — are gearing up for an expansion. Recently, Bangalore-based Manipal Group hived off its real estate assets to an REIT created by another arm of its group.