Enayati, CMU: Real estate scenario could be replicated on private medical services market

Wargha Enayati, founder of Centrul Medical Unirea (Unirea Medical Centre - CMU), one of the main private clinics chains on the Romanian market, believes the situation on the real estate market, which for many years saw a significant rise and attracted investments of billions of euros only to start on a downward trend in 2009, could also occur on the private medical services market.

The leading private operators in the healthcare sector announced projects of over 150 million euros in medical facilities, of which over 70 million euros this year alone, according to a recent ZF analysis based on data released by companies. This is a record level for the sector. Over 13 clinics have been announced in total for this year, with another seven hospitals to be built until 2011.

"Unfortunately all these investments will be made, but it is a very dangerous move. I have the feeling this is similar to what happened on the real estate market. The market has risen on a year-by-year basis. It is like a soap bubble, which I expect will eventually burst," Enayati told ZF in an interview. The businessman has this year relinquished the controlling stake in CMU, but remains at the helm of the company, this being one of the conditions posed upon the conclusion of the sale. The company's majority shareholder is investment fund Advent International, which owns 80% of the business.