Two of Bucharest’s landmark buildings seized by anticorruption prosecutors

Romania’s National Anticorruption Directorate (DNA) has seized local investor Dan Adamescu’s stakes in hotel Intercontinental and Unirea Shopping Center, two of Bucharest’s best-known buildings. The decision doesn't impact the operations of the two companies, as they are not involved in any way in the prosecutors' investigation against Adamescu. It only prevents Adamescu from selling his stakes. DNA has recently decided to freeze some EUR 190 million worth of assets owned by Dan Adamescu. The measure is part of DNA’s investigation on the bankruptcy of Romania’s largest insurance company, Astra Asigurari, which the businessman controlled. The prosecutors consider Adamescu responsible for the EUR 180 million damages taken by Astra. On March 7, 2016, the prosecutors officially charged Adamescu with abuse of office, money laundering, and complicity to abuse of office by public officials. They also set a EUR 9 million bail, which the investor covered with a real estate property he owned. Dan Adamescu holds a 48.61% stake in hotel Intercontinental through The Nova Group Investments Romania and Cyprus-based Mountbay Limited. Adamescu’ shares are worth EUR 5.8 million, according to the most recent quotation on the Bucharest Stock Exchange. Intercontinental is one of the biggest hotels in Bucharest. The bankrupt insurer Astra Asigurari also has a stake of 16.3% in the hotel. The prosecutors also seized Adamescu’s 74% stake in Unirea Shopping Center, a five-level shopping center in the heart of Bucharest, which was built during the communist regime (just like the Intercontinental). The shares are worth some EUR 25 million, based on the latest price on the Bucharest Stock Exchange. Adamescu also owns several office buildings in Bucharest, including the one that hosts the Bucharest Stock Exchange’s headquarters, and the Rex hotel in the Mamaia Black Sea resort. The frozen assets can’t be transferred and if the court finds Adamescu guilty of the charges brought against him by DNA, the state may sell some of the assets to recover the damages. Romanian investor investigated for biggest bankruptcy in the insurance sector asked to pay EUR 9 mln bail editor@romania-insider.com (Photo source: ihg.com)