Developer builds hundreds of French chateaus in rural Turkey, bankruptcy ensues

Sarot Group saddled with $27M in debt

TRD NATIONAL /
Dec.December 01, 2018 10:00 AM

Burj Al Babas (Credit: Sarot Group via Facebook, iStock)

Who would have thought that building 732 miniature Renaissance-style chateaus in the Turkish countryside could go wrong?

Developer Sarot Group was placed under court-ordered bankruptcy over the Burj Al Babas project Turkey’s Bolu province, Bloomberg reported. According to the Turkish newspaper Hurriyet, 587 homes are already completed, and 350 were sold to buyers from Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Bahrain.

The project, which the developers claims is valued at $200 million, includes swimming pools, Turkish baths, a shopping center and a mosque.

Sarot’s chair Mehmet Yerdelen pointed the finger at buyers who failed to pay up. “We couldn’t get about 7.5 million dollars receivables for the villas we have sold to Gulf countries,” he told Hurriyet. “We applied for bankruptcy protection but the court ruled for bankruptcy. We will appeal the ruling.” The project is $27 million in debt. [Bloomberg] — Konrad Putzier


Related Articles

arrow_forward_ios
Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

arrow_forward_ios