Mubasher: Turkish Sarot Group, the builder of chateaux-style homes within its $200m Burj Al Babas project, filed for bankruptcy on the back of the complex’s $27 million debt.
Located in the Mudurnu district of Turkey’s Bolu province, the development features 732 villas, a shopping centre, a hotel, a mosque, swimming pools, Turkish baths, and health and beauty centers.
The project has attracted investors and customers from Saudi Arabia and the UAE, Qatar, Bahrain, and Kuwait, Bloomberg News reported, citing Hurriyet newspaper.
Gulf customers had already bought 350 villas, at a going rate of $370,000 to $530,000. They specifically asked for the chateau-like design, according to the project’s consulting architect, Naci Yoruk.
Construction work has been completed for 587 villas, but “all works have been suspended as of now,” the report said.
“We couldn’t get about 7.5 million dollars receivables for the villas we have sold to Gulf countries,” Hurriyet quoted Yerdelen as saying. “We applied for bankruptcy protection but the court ruled for bankruptcy. We will appeal the ruling.” Sarot Group chairman, Mehmet Emin Yerdelen, said.
The project's total cost amounted to $200 million, he noted.
“We only need to sell 100 villas to pay off our debt. I believe we can get over this crisis in four to five months and partially inaugurate the project in 2019.” Yerdelen added.