Enache willing to sell more hotels through sale&lease back contracts

Businessman Radu Enache, owner of the Continental hotel group,
with 27 million euros in turnover last year, is considering selling
new hotels through sale & lease back contracts, after in the
last two years he signed four such contracts, worth around 35
million euros. “Sale & lease back contracts are a source of
financing I will probably resort to again. We have other projects
in our financing plan, as well, but I will make a decision in the
next five or six months, after things calm down on the market,”
said Radu Enache. Sale & lease back real estate contracts are a
source of financing whereby the seller of a real estate property is
entitled to use it on long term, in exchange for rent. Enache
previously sold two-star hotel Hello in Bucharest through a sale
& lease back contract to Immorent, the real estate division of
the Erste group, and last year sold the Ibis hotel in Constanta,
which will be bought back after 15 years. In 2007 the businessman
sealed another two sale & lease back contracts worth 18.4
million euros for Continental Arad and Parlament in Bucharest.
Raiffeisen Leasing is the company that worked with Continental for
the contracts sealed two years ago.