(P) InteRo is reorienting itself towards projects outside Bucharest, after the mayor…

Consequently, the 10-hectare land in the middle of the city remains an area in ruins, like after the war, a real danger for passers-by.

The Canadian family of investors Topolinski, the founder of InteRo Property Development, is forced to postpone the 1 billion euro investment in the SkyLight Residence project, which would revitalize the land of the former Aversa factory in the Obor area, including through the construction of educational units (for 500 children) , green spaces (a publicly accessible park of 7,000 sqm and 9,000 sqm of private parks and green areas), as well as new infrastructure. The construction works were scheduled to start last year, but the General City Hall contested the authorization issued by the Sector 2 City Hall, thus blocking the development. InteRo has already won the trial in the first instance and expects to win in the appeal as well. But this process takes time, and in the meantime the residents of the Obor area have to bear the proximity of a 10-hectare unsanitary and dangerous land, which now resembles a war zone. Meanwhile, the real estate investor is focusing on new projects outside the city.

For over 16 years, the Topolinski family has trusted the potential of the real estate market in Bucharest. But the projects you have started recently suggest that you are reorienting yourself towards projects outside the city.

Our belief has not changed. The market in Bucharest is solid and has not yet reached its maximum potential. We are still interested in strengthening our business locally. Thus, in the coming months, we are going to start the construction works on one of the most important real estate projects of the group – the luxury complex Smart Home Pajurei 3 Residence.

However, the current administrative blockade – unprecedented since we came to Romania in 2008 – forces us to expand our portfolio outside the city, while continuing to fight – together with other real estate developers in our situation – against the unreasonable attitude and unsustainable that the General Mayor of the Capital, Mr. Nicusor Dan, has.

This attitude deprives the citizens of Bucharest of the necessary housing spaces, with numerous consequences on a market already affected by the reduced availability of new projects, more expensive and lower quality houses, the migration of the population to the outskirts of the city, which puts a huge pressure on the infrastructure of transport and has a negative impact on the environment. The courts in Bucharest are currently overwhelmed with hundreds of files dealing with real estate projects blocked by the will of Mr. Nicusor Dan. This implies huge costs for the local administration – and, implicitly, for the residents of Bucharest.

In my opinion, Mr. Nicusor Dan behaves more like a lawyer than a Mayor, as he spends more time in court than at City Hall. I completely agree that the fight against real estate development projects carried out through acts of corruption and illegal practices is a must. I fully understand and support this, being, for my part, a supporter of the fight against corruption, but a mayor must have the ability to discern between harmful projects and sustainable ones, which add value and make a difference in the community.

In his crusade against what he calls real estate mafia, Mr. Dan made a big mistake by seeking to block all real estate projects in the city, which caused considerable damage to the local economy. For the real estate industry, such an attitude is completely unproductive and affects even well-intentioned companies, such as InteRo. As Mayor General, you must encourage sustainable and innovative projects that keep the population and investments in the city, and not push them out of the city.

How did this situation influence InteRo’s plans in Bucharest?

It affected us a lot. SkyLight Residence, a €1 billion project designed to revitalize the area of ​​the former Aversa factory, now in an advanced state of decay, is completely blocked. Although Radu Mihaiu, the Mayor of Sector 2, issued us the building permit in September 2022, Nicusor Dan insists on blocking us in court.

The result is that the 10-hectare land in the middle of the city remains an apocalyptic landscape, with buildings in a deplorable state, uneven platforms that only generate risks for the health and safety of the inhabitants. Instead of green spaces, parks, income to the local budget, jobs, or other social benefits, the residents only experience dangers.

It is disappointing that Mr. Nicusor Dan, who built a reputation as a fighter against the real estate mafia, is now blocking a project for which my family and I have faced false and unfounded accusations, biased journalism and opinion manipulation for 9 years public by a corrupt system.

We fought for 9 years with the State Asset Management Authority (AAAS) in the Aversa privatization case. Probably not many foreign investors would have shown such determination, courage and strength to support their cause, but our family remained faithful to the principles of business ethics and the fight against systemic corruption. After defeating AAAS in court 21 times, we finally obtained a final decision in September 2022 and were ready to start this flagship project for the Obor area.

What is the status of the project now?

We were only able to carry out urgent demolition and clean-up work once we obtained the demolition permit in 2022. We had to move quickly because two reports by expert engineers concluded that these buildings in an advanced state of decay could collapse at any time across Ziduri Moşi street, thus endangering passers-by.

We invested approximately 500,000 euros in demolition and cleaning works, preparing the construction works, planned to start in 2023. The City Hall of Sector 2 issued the building permit in September 2022, but the General City Hall challenged it in June 2023. tried several times to discuss with Mr. Nicusor Dan about his concerns regarding the project, but our requests remained unanswered. We also covered the topics point by point in a formal letter in May 2023.

InteRo Property Development has already obtained a favorable decision in the first instance, but Mr. Dan will file an appeal and we do not know when and how this situation will be resolved.

What are the General City Hall’s concerns regarding the SkyLight project?

From the information we have, supported by his past arguments, Nicusor Dan has decided to challenge all or most of the building permits issued in 2022 in Sector 2, as he believes that the designed green spaces are undersized, compared to the built-up area in Bucharest.

However, this is not the case with SkyLight Residence. Our project has been designed to meet the BREEAM excellence standard that certifies green projects and includes almost 28,000 m2 of green space – the equivalent of a medium-sized park, representing more than 35% of the project area, compared to the mandatory percentage of 30%.

The development will include a public park of 7,000 square meters, 5 private parks with a total area of ​​9,000 square meters and 12,000 square meters of green areas distributed over the entire surface of the project.

What impact would SkyLight Residence have in the Obor area?

SkyLight Residence is a sustainable project that will forever transform this emblematic neighborhood of Bucharest, revitalizing the former factory area into a space full of energy, where people will work, shop, live and have fun.

It is a mixed-use project aimed at the medium and premium market, which will include 2,200 apartments, 8,540 sqm of commercial space and 89,000 sqm of offices in the form of an IT campus, which can generate approximately 10,000 jobs.

The amount of taxes attracted to the town hall budget as a result of this project would be at least 15 million RON per year. We also decided to donate to the local administration the roads that we will build within SkyLight, totaling approximately one kilometer in length, worth 10 million euros.

At the same time, we conducted a survey with over 400 residents to identify optimal solutions for the neighborhood, to improve and make the project more relevant for the entire community. Thus, we added to the project a primary school with a capacity of 250 places, three kindergartens (150 places) and two nurseries (100 places).

What expectations do you have from the future administration, installed following the local elections in Bucharest?

No matter who wins the mayor’s office of the Capital, I hope that he will administer the city in the interest of the citizens. I would challenge Mr. Nicusor Dan to say if he really believes that blocking our project and leaving this land in ruins, in the middle of the city, is in the interest of the citizens. And if he is proud that he destroyed such a valuable project and such a big investment.

As a real estate developer and resident of Bucharest, I 100% agree that it is time for the General Mayor to actively and constructively analyze the real estate activity, for the good of the community. I strongly believe that we must eradicate illegal practices in this industry and block projects harmful to society.

It is a commendable attitude for a civil servant, but at the same time, the local administration has the obligation to prevent destructive blockages in an industry that contributes significantly to the local budget and is an important engine of economic growth.

At this moment, real estate development is pushed outside the city, which intensifies traffic, congestion and pollution, making life difficult for all Bucharest residents. The city administration should encourage mixed-use projects, built on existing public transport infrastructure, as they are an effective solution for reducing traffic pressure and environmental impact. That means smart development and constructive political leadership that helps communities thrive.

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