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

Sarot Group saddled with $27M in debt

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

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone

From left: 515 Park Avennue, Soori High Line, One Beacon Court, 53 East 67th Street and 15 Hudson Yards (Photos via Douglas Elliman, Compass, StreetEasy, Hudson Yards, Apartments)

Priciest homes to hit market include an UES building prime for mansion conversion

166 E. 81st St. (Credit: Google Maps, iStock)

UES townhouse once described as “infested with vermin” goes into contract

Marie-Chantal Miller, the Crown Princess of Greece, and her husband Pavlos, the Crown Prince with 385 Great Plains Rd, Southampton, NY  (Credit: Getty Images)

Royal couple buys sprawling Southampton mansion