The shareholders of Oil Terminal (BVB: OIL), with the Romanian state as the major shareholder (87.75%), approved a broader agreement with major local developer Iulius Real Estate under which the latter will develop a mixed-use urban regeneration project on a 38ha plot of land owned by the former. The land is located close to Constanta train station.

The project is expected to involve over EUR 800 million of investments.

Iulius Company, which includes Iulius Real Estate, is a real estate developer and operator specializing in mixed-use urban regeneration projects owned by Iasi-based businessman Iulian Dascalu, and it invested over EUR 1.2 billion in Iasi, Timisoara, Cluj-Napoca, and Suceava.

The arrangement between Iulius and Oil Terminal involves the environmental cleansing of the land (a key requirement expressed by the Oil Terminal when selecting the bidders) and a Superficies Contract – also known as leasehold – in the amount of EUR 2 million per year (indexable) over a 99-year period of time (with the option to prolong it) in favour of Oil Terminal.

Prime Kapital, another Romanian developer, reportedly competed for the right to use the land, but it reportedly asked Oil Terminal to finance from its own pocket the environmental cleansing of the land, according to Economica.net.

iulian@romania-insider.com

(Photo source: Roman Motizov/Dreamstime.com)