Oil Terminal and IULIUS partnering for the most ambitious urban reconversion project, in Constanța

On the 14^th of September 2023, at the headquarters of the Ministry of Energy, Oil Terminal S.A. and IULIUS have signed a partnership agreement. Thus, a 38 hectare land owned by Oil Terminal S.A., a joint-stock company in which the Ministry of Energy has an 87.75% holding, that has been inactive for 10-plus years and has accommodated storage facilities for petroleum products, is given back to the city as a sustainable and accessible urban area for the entire community, contributing to the economic, tourist, social and cultural development of Constanța City.

“This partnership between a majority state-owned company and a reputable Romanian entrepreneur, with proven results, is the greatest opportunity for the development of Constanța and Dobrogea. The goal is to transform the community by means of a modern space that attracts economic and tourist opportunities through all the seasons. We encourage all the companies in the portfolio of the Ministry of Economy to sign such partnerships in a competitive and transparent manner and thus contribute to the well-being of Romanian citizens by creating jobs and increasing the quality of life,” said Sebastian Burduja, Minister of Energy.

In addition to the 810-plus million Euro estimated investment in developing the land as a project integrating urban gardens, offices, shopping and entertainment area, educational and cultural facilities, as well as integrated infrastructure to support mobility and connectivity, IULIUS will also pay to Oil Terminal S.A. an annual superficies tax of 2 million Euro, subject to indexation.

“This partnership represents the materialization of a very important objective of the development strategy for the 2020-2025 timeframe at Oil Terminal S.A., regarding the development of a land that has been inactive for more than 10 years now, as the previous activity has become unsuitable for being conducted in the city, near residential areas. Thus, we support the implementation of investment projects related to the main activity. We needed a partnership with the vision and capacity to utilize this land not only as a business venture, but as an endeavor with impact for the community. We are glad that IULIUS was one of the companies that responded to our public invitation and submitted an offer and the only one that took on the environmental cleanup for the land, a key criterion in the selection process. Considering the expertise at IULIUS, we are confident that the city will gain a project with a defining role in the development of Constanța, following a historical investment in the south-east region of Romania and beyond,” said Viorel-Sorin Ciutureanu, General Manager of Oil Terminal.

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First phase: environmental remediation of the land

The land will be reintroduced in the economic circuit by means of IULIUS building an urban regeneration and development project, and this partnership will help to increase the extent to which local and regional community needs are met and to improve the quality of life in a sustainable and responsible manner. In the first phase of the venture, IULIUS undertook the fulfilment of the environmental obligations related to the land and the environmental remediation thereof, a crucial objective of Oil Terminal S.A., which was also a key criterion in selecting their partner for developing this asset. The company has long been concerned with the environmental remediation of the land, but Oil Terminal S.A. did not have available funds for carrying out the necessary works.

“Constanța is our latest destination, a city with a major growth potential and valuable human capital. We have a firm objective, namely to provide the local community with a project that is open and useful to all, with urban gardens and relaxation, entertainment and cultural uses, as well as a hub for development opportunities that will create many jobs. We strongly believe in the potential of Constanța and we have the necessary expertise and resources to create a project that will help the port city capitalize on all its strengths and become one of the economically strong regional centers. We will do this together with the local community, gaining an in-depth understanding of the residents’ needs and expectation, as we did for our other urban regeneration projects in Iași, Timișoara and Cluj-Napoca,”said Iulian Dascălu, President of IULIUS Company.

Mixed-use project with a park, botanical garden, business hub and entertainment concepts

The project will be developed according to the city within a city concept, where people will have access to all the facilities they need for a sustainable urban lifestyle. The development will integrate a botanical garden and park with outdoor relaxation, sports and entertainment uses, as well as an office component, so as to create investment opportunities and support the retention of young local talent and the development of the university center. It will also be a shopping and leisure destination, with new retail and entertainment concepts, fresh market with local producers and entrepreneurs, themed restaurants, bistros and coffee shops, as well as cultural and entertainment uses, providing year-round quality leisure opportunities.

Oil Terminal S.A. is an oil company operating for more than 125 years now, with a strategic position in the Black Sea area, being the largest offshore petroleum products operator, with results that reflect its performance. The partnership with IULIUS falls within the sustainable development strategy of the company, by reclaiming unused, rundown and resource-consuming assets to upgrade existing assets and develop new storage capacities. At the same time, by diversifying its business, Oil Terminal S.A. also wishes to contribute to a major investment in Constanța, leading to the creation of new jobs, economic support activities, an improvement in the quality of life and standard of living, tourist attractiveness of the city and the development of social uses.

IULIUS has 25 years of real estate experience and expertise in developing major urban regeneration projects in Iași, Timișoara, Cluj-Napoca and Suceava, which include retail, office, entertainment uses and ample parks. The investments made by IULIUS resulted in the development of the respective cities into business destinations for international companies and tourist attractions, the creation of 35,000 jobs, development of large gardens with leisure facilities, implementation of integrated sustainability strategies via green building and responsible operation, as well as ensuring the infrastructure for connectivity and mobility.