ZF English

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

27.05.2010, 20:49 10

Wargha Enayati, founder of Centrul Medical Unirea (UnireaMedical Centre - CMU), one of the main private clinics chains onthe Romanian market, believes the situation on the real estatemarket, which for many years saw a significant rise and attractedinvestments of billions of euros only to start on a downward trendin 2009, could also occur on the private medical servicesmarket.

The leading private operators in the healthcare sector announcedprojects of over 150 million euros in medical facilities, of whichover 70 million euros this year alone, according to a recent ZFanalysis based on data released by companies. This is a recordlevel for the sector. Over 13 clinics have been announced in totalfor this year, with another seven hospitals to be built until2011.

"Unfortunately all these investments will be made, but it is avery dangerous move. I have the feeling this is similar to whathappened on the real estate market. The market has risen on ayear-by-year basis. It is like a soap bubble, which I expect willeventually burst," Enayati told ZF in an interview. The businessmanhas this year relinquished the controlling stake in CMU, butremains at the helm of the company, this being one of theconditions posed upon the conclusion of the sale. The company'smajority shareholder is investment fund Advent International, whichowns 80% of the business.

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