Oil Terminal, a company controlled by the Romanian state (60%), received the approval of the Ministry of Energy to kick off negotiations with Iulius Group, controlled by Iulian Dascălu, for a massive urban regeneration project in Constanta estimated to cost over EUR 0.8 bln.

The developer will build "hotels, office spaces for the private and public sectors, retail and logistics spaces, systems of integrated real estate solutions composed of office spaces, commercial spaces and condominium type housing, conference rooms, performance and table sports rooms, recreational spaces, green spaces, parking lots," reads the document quoted by Ziarul Financiar.

It is not a project as large as the Romexpo complex planned with the chamber of industry CCIR in Bucharest (still on ice for legal reasons regarding the land), but still one of the biggest investments in Constanta in recent years and the biggest association between a state company and an entrepreneur.

According to a document already endorsed by Oil Terminal shareholders, the land is the property of Oil Terminal, and the developer is Iulius Real Estate – which will finance the development from its own sources and other sources attracted for the development of this project.

Apparently, the profit of the state's association with Iulius Group is not of foal importance. "The estimated value of the profit to be obtained in the first 15 years of operation will be detailed later," the document reads.

iulian@romania-insider.com

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