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The company is looking to establish 10 large-scale medicities, comprising healthcare facilities as well as medical schools by 2017.
Ansal Properties had sold the land to Fortis for an undisclosed amount. Fortis will invest Rs 500-700 crore (Rs 5 billion - Rs 7 billion) for setting up the medicity, which will include an 800-bed hospital, a dental college as well as a full fledged medical college offering undergraduate, post graduate and post doctoral courses.
While the realty company will not charge Fortis any license fee for operating in its township, it is looking to unlock value from it.
"We have planned a retirement village in the Lucknow township and the medicity has been a major attraction to the senior citizens. Others who come from outside Lucknow for treatment will be able to find accommodation in the township," said Pranav Ansal, director, Ansal Properties & Infrastructure.
This is Fortis' second announcement for a medicity -- the first being in Gurgaon. "As far as which will roll out first, I want both the medicities to compete with each other on that front. But it looks as if the Lucknow one will become operational first," said Shivinder Singh, managing director, Fortis Group.
He added that Fortis was also in talks with the Gujarat government for setting up a project in Ahmedabad. In addition to that, the company is currently planning two medicities in Punjab and one in Jaipur.
"As we are a listed company, it is important to note that the colleges cannot be a part of Fortis Healthcare. Medical Council of India does not permit education for commercial purposes. As of now, it is part of the holding company, let us see if we spin off a new company for these institutes," said Singh.
Ansal Properties may also partner Fortis for a medicity in its 5,000-acre township in Greater Noida. "We have to reserve 2 per cent, or 100 acres, for healthcare in the township as well as another 2 per cent for education. We might partner Fortis for this," said Ansal.
Clearly on an expansion drive, Fortis Healthcare is on the verge of signing a joint venture with DLF Ltd for setting up 31 hospitals in the realty company's 200-acre plus townships at an investment of Rs 6,000 crore (Rs 60 billion).
"We will partner with realty firms when it makes sense and when it will help in our expansion drive," said Singh.