Iraqi businessman Tomah Kahled, the owner of the Sir shopping complex in Bucharest, has put up for sale the residential project prepared on the site of the former Energo-Reparatii factory near Carol Park in the centre of Bucharest.

The decision was prompted by the City Hall’s decision to block for a year the urban zonal planning for five of the six districts in Bucharest.

However, the investor will not sell the 8,800 square metre land at a loss: he reportedly expects EUR 13.5 mln for the land purchased in 2017 for EUR 5.6 mln. 

However, Kahled did not give up the idea of ​​developing the project on his own, according to Profit.ro.

At stake there is a profit estimated at some EUR 20 mln, generated by the EUR 60 mln investment (the price of the land included).

It is not clear whether the calculations mentioned by Profit.ro (indicating a hefty 33% profit margin) were drafted before or after the recent surge in the price of the construction materials accused by the real estate developers of squeezing their already narrow earnings. 

(Photo: Ronstik/ Dreamstime)

andrei@romania-insider.com