Bucharest Medical Hub Seeks Funding

EU/Romania/Bucharest - Private Medical Facility Development - Phase I Medical Tourism Multi-Specilised Clinincs Hub in Romania capitalising on Geothermal water and Internationally recognized Anti-Aging Treatment. Location: Northern City Area, 2 Airports connection within 10 min. drive. Land under Developer's ownership, all infrastrucutre in place.

THE CONCEPT
Pioneering Thermal Water Health and Wellness services in Bucharest: Taking advantage of the unique healing power of mineral thermal water springs. The hospital is projected to provide an integrated health and wellness facility for the cardiovascular problems, metabolism upsets, rheumatism or respiratory complaints as well as anti-ageing clinical facilities and laboratories.

Forest Scenery and state-of-the-art Medical Facility: Located in the Northern Bucharest benefits from the International Airport proximity and green forest scenery, being designed in principle for foreign patients and medical tourism.
The natural resources like green environment and thermal waters from underground is a strategically asset for the project.

The main investment would consist of a 250-300 beds, medical clinics and outpatient bases for clinical investigation and treatment. Also, a state-of-the-art medical research centre with modern laboratories and a modern conference centre will support the smooth operation of the Medical Hub.

Multiple Phase Development Concept: The core medical Hub shall consist of Medical Hospital thermal water treatment clinic and outpatient accommodation facilities while specialised clinics such plastic surgery, minor surgery and non-chronic diseases clinics are to be added later to the hub to enhance and provide a full-fledged medical services for foreign patients. While the patients would be encouraged to have their families around during treatment, an all-inclusive family touristic experience to the unique Romanian sites like Danube Delta or Transylvania would complement the patients’ stay.

The Key Competitive Advantage is thus the multi-specialty clinics into one integrated facility together with wellness and SPA, while the Key Comparative Advantage would be provided by the Thermal Water Springs beneath the site itself.

THE MARKET
Romanian Private Medical sector continues to expand at impresive rates over medium term geared by economic convergence with EU. The healthcare expenditure in Romania is way below EU average of 8.5% of GDP, about 4.7% of the Romania’s GDP being currently allocated to public medical sector. During last 5 years, the private healthcare system registered an impressive growth of over 25% yearly. The market value of private medical services is estimated to exceed USD600 mio. For 2012.

Modern Medical Facilities + Competitive Staff + localized treatment resources
as sustainable medical tourism potential: With 60% lower prices than EU-17 countries average, Romanian medical services could sustain more than 100,000 medical tourists, mostly for non-surgery applications in private clinics. The market value of medical tourism in Romania was around USD45 mio. for 2011, while projected to over USD 100 mio. for 2015.

THE FINANCIALS
The total project investment value is estimated at EUR 92.8 Mio. at a projected internal rate of return at 13.9%. The investment shall be realised in 4 phases, out of which the first phase is estimated at EUR 22.7 Mio. ROE at 32.1% with a 70% LTV level.

THE PARTNERSHIP
The project requires specific Equity contribution for Phase I [around 20 mil USD/15 mil EUR] and knowledge/operational involvement partners; The Developer is listed on Bucharest Stock Exchange having already secured the land and ready to provide extensive real-estate development local expertise based on its 20+ years experience.

Investors can purchase contact with the developer on Merar.

On-Site Thermal Water Springs potential; Forrest surroundings; Integrated Health, Wellness & Spa; International Standards Services For Medical Tourism
Land secured:5-10 ha. land under developer’s ownership; expansion areas available; on site Thermal Water springs.

Medical services local market expanding at 25% pa. rates; Modern Medical Facilities + Competitive Staff + localized heritage internationally recognized anti-ageing treatment resources as sustainable medical tourism potential.

On-Site Thermal Water Springs potential; Forrest surroundings; Integrated Health, Wellness & Spa; International Standards Services For Medical Tourism

The investment shall be realised in 4 phases, out of which the first phase is estimated at EUR 22.7 Mio while the 2nd Phase stands for another EUR18.8 Mio.
The average yearly TURNOVER and EBITDA is expected to reach EUR 15.4 Mio. and EUR 12.1 Mio. respectively, over the 15 years operations span considered.

The 5 ha of land owned by the Developer has a current market value of EUR7.5 Mio. provided as in-kind capital.

Expected Phase I LTV of 50% debt financed through local or international credit facilities.

The TOTAL Infrastructure and Landscaping reaches EUR 5.7 Mio.

The TOTAL MedicalHub facilities/offices, Hospitality, Shopping and Associated
Leisure investment reaches EUR 73.3 Mio.

Upon Soft cost additions of EUR 6.3 Mio.,

TOTAL Investment Cost for the 4 Phases until completion would be in a range of EUR 93 Mio.

The ideal Partner would Co-invest as equity partner and enhance debt exposure of the project and Bring strategic edge and international facility management operations know-how access;

The Developer brings An experienced management team, integrated design & build capabilities, Excellent local authorities relationship management and In-depth knowledge of the Romanian market.

The return on equity is projected at 32.1% based on a 70% capital expenditure leverage consideration over the 15 years project life-cycle.The total project investment value is estimated at EUR 92.8 Mio. at a projected internal rate of return of 13.9%.