Tuesday, 23 August 2016

Gulf investors maintain interest in Turkish property despite turmoil

Gulf property investors are likely to remain unfazed by the security concerns in Turkey, thanks to their tolerance for risk and the country’s economic potential.

Despite political uncertainty coupled with a recent intensifying of violent attacks from Kurdish PKK militants, property brokers say that interest from Gulf investors remains strong.
"GCC countries currently account for more than 50 per cent of all foreign sales and are expected to increase demand in the short to mid-term," said Diana Dogan, the head of research at the broker CBRE Istanbul.

    Earlier this month the Kuwaiti real estate firm Mazaya announced it had raised to 90 per cent its stake in Istanbul, a development of six tower blocks comprising more than 1,000 homes, 150 shops and nearly 100 offices.
    Mazaya, which signed the deal after the botched coup on July 15, is keen to pursue other opportunities in Turkey.
    "Any political disturbance internally or externally always has an impact on the market’s economic and financial situation following the external appetite for supply and demand, but this is a short-term effect," said a Mazaya spokeswoman. "The Turkish market has all the strong parameters to promote itself in the GCC."
    Source: www.thenational.ae/business/property/gulf-investors-maintain-interest-in-turkish-property-despite-turmoil

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    Friday, 12 August 2016

    Al Mazaya acquires 50% stake of a real estate project in Turkey

    Kuwaiti real estate firm Al Mazaya Holding has acquired 50% stake at Ritim Istanbul project in Turkey, raising its share of the project to 90%.

    The deal is valued at around $25m.

    On this occasion, the group CEO of Al Mazaya Holding, Eng Ibrahim Al Soqabi, said: “This acquisition reflects the confidence of Al Mazaya in Ritim Istanbul project; it also reflects the high potential of the project (especially as 80% of it has already been sold while construction is reaching 95% completion) and it has yielded positive returns on the company.”

    He added: “The deal has positive financial returns for Al Mazaya from the profits generated by the acquisition and also from consolidating the project’s balance sheet into ours—the handover of the project started in the second quarter of this year, which led to pocketing profits from this handover process.

    "Also, the revenue generated from leasing the retail space, which is already 60% leased, will yield positive financial returns for Al Mazaya and contribute to its profitability in the coming period.

    "This will prove to be particularly true with Al Mazaya’s stake in the project reaching 90%, which will be incorporated into the company's Q3 2016 balance sheets and profits once all deal procedures are finalised.”

    Source: http://www.constructionweekonline.com/article-40392-al-mazaya-acquires-50-stake-in-turkey-project/

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    Tuesday, 12 July 2016

    Istanbul preferred over London among Arab investors

    Despite being the first choice for wealthy Arabs in the world real estate market, London's attraction is melting away in the eyes of Arab investors after the Brexit vote, which has made Istanbul an alternative attraction center for Arabs. Real estate investors are rapidly selling properties in London. From July 23 onward, seven real estate funds have stopped transactions, which Turkish building contractors consider an opportunity. This is because many Arab home buyers consider Istanbul is the best alternative to London.

    According to the Akşam daily, the U.K. has received a major blow following its decision to leave the EU and lost its fifth position to France in the world ranking due to the loss of value in the British pound.
    Meanwhile, severe concussion in the economy has begun spreading sectors and companies in waves. The British real estate market, which has been a favorite investment area for Gulf states and Arabs, has been affected most by the shock.

    The significance of London, which was a safe haven for the wealthy Arabs to purchase houses and make investments, has been on a rapid decline after Brexit. Arab investors are selling off their real estate properties in the city and are the top players of withdrawal from the British real estate sector.

    Analysts warn about the possibility that office prices might drop by up to 20 percent in the U.K. within three years after secession from the EU, causing investors to rapidly withdraw their money from British real estate funds. The funds experienced a similar shock during the 2007 and 2008 crises and had to stop transactions, leading to a 40 percent fall in real estate prices in the U.K.

    Turkish building contractors think that the decline in British real estate market is an opportunity for Turkey as the money that the Arabs have withdrawn from the market will seek a new safe haven. They argue that there is no alternative to Istanbul in the world real estate market in terms of investment intensity and yields.

    Source: http://www.dailysabah.com/real-estate/2016/07/09/istanbul-preferred-over-london-among-arab-investors

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    Monday, 6 June 2016

    Abraaj moves into Turkish banking with Fibabanka buy

    Emerging markets focused private equity firm Abraaj Group said on Monday it had acquired a minority stake in Fibabanka to get a foothold in the Turkish banking sector.

    Abraaj's move to buy a 9.95 percent stake in Fibabanka comes days after British private equity firm Bridgepoint bought Turkish dried fruit and nuts producer Peyman in a deal sources said was worth some $110 million.

    Fibabanka will use the investment by Abraaj, which has about $9 billion in assets under management, to expand its franchise and support its growth, Abraaj said in a statement.

    Details of the Fibabanka deal were not disclosed, although Abraaj said that following the investment it will have deployed around $900 million of capital in Turkey since 2007.

    "The Turkish banking sector loan book has increased tenfold in the last decade, yet Turkey remains an under-leveraged market with a household debt to GDP ratio that is approximately a third of the Eurozone average," said Selcuk Yorgancoglu, Partner and Regional Head of Turkey and Central Asia at The Abraaj Group.

    "The country's young and rising middle class continues to fuel demand for loan products and Fibabanka is well-positioned to expand in the market."

    Established by leading Turkish businessman Husnu Ozyegin in 1987, the Fiba Group is also involved in real estate, retailing, hotel management and energy.

    Fibabanka was acquired by Fiba Group in 2010. It currently has 70 branches across 18 cities in Turkey, total assets of $4.3 billion and a loan book of $3.2 billion at the end of first quarter of 2016, the statement said. The bank's focus was on commercial, corporate and SME customer segments, it said.

    EBRD and IFC both have 9.95 percent stakes in Fibabanka.

    Turkish M&A activity has also been subdued, with only 41 transactions in the first four months of this year in the country, according to data from Ernst & Young, the lowest level since 2009, during the global financial crisis. (Reporting by Ebru Tuncay and David French in Dubai; Writing by Seda Sezer; Editing by Daren Butler and Alexander Smith)

    Source: http://www.reuters.com/article/turkey-fibabanka-abraaj-idUSL8N18Y0ML

    Thursday, 12 May 2016


    Turkish construction sector put a firm stamp at the Turkish-German Investment Summit organized by the Maleki Group, one of the leading financial communications companies of International Bankers Forum IBF Germany.
    “Turkey invested $50 billion in the construction sector in 2015. Our goal is to build 1.2 million houses by 2023. We will hold tenders for the construction of 60 thousand houses this year. Housing Development Administration (TOKİ) currently cooperates with 93 countries and will work with international partners in its new giant projects.” TOKİ Vice President Mehmet Özçelik said in his speech.
    During the summit, foreign investors were invited to invest in Turkey. “Those who believe in the value of Istanbul will win.” CEO of the sponsoring Cathay Group Mehmet Yılmaz indicated.
    Following are the 5 reasons why investing in Turkey is attractive for European investors:
    * Returns are around 20-22% in Turkey while 5-10% in Europe
    * Housing prices lower than Europe
    * Houses being renewed under urban transformation
    * Brand cities on the rise
    * Attractive in terms of location and natural beauties
    Source: http://www.byegm.gov.tr/english/agenda/those-who-believe-in-istanbul-will-win/94891

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    Friday, 29 April 2016

    Saudi firm invests $500M in real estate project in Istanbul

    Saudi Arabia-based Al Qemam Group's Akzirve Gayrimenkul will embark on two new real estate investments worth approximately $500 million in Istanbul. One of the projects is expected to bring in $1.25 billion in revenue, Akzirve Gayrimenkul CEO İbrahim Maasfeh said.

    Speaking at a press conference in which the company's investment plans were laid on the table, Maasfeh said, "At Al Qemam Group, we have carried out projects in several countries, including Turkey. However, we wanted to take part in the real estate sector as a developer as well. We are investing in two projects in the districts of Bahçeşehir and Zeytinburnu in Istanbul. The total cost of the two projects will be $500 million. We expect the project in Bahçeşehir to yield $500 million in revenue and the project in Zeytinburnu to bring in $750 million in revenue." Maasfeh also explained that the Saudi Arabian company has been operating in various sectors in Turkey for years.

    Maasfeh further explained that they are working on other projects that they will continue to develop: "We have lands in Antalya and we are working on two or three lands in Istanbul as well. We will continue to invest during the second half of 2016. Our priority will be Istanbul." He also said that they will develop a project for a logistics and storage area in Hadımköy, Istanbul with an investment of approximately $200 million. Commenting on their decision to invest in the real estate sector, Maasfeh said, "We have observed recent economic stability in Turkey; it is a safe harbor. The real estate sector has great growth potential. It is slowing down in some regions, but the regions that we chose to invest in are developing. We do not believe that there will be a backlog." He concluded by saying that they might participate to tenders orchestrated by institutions such as Emlak Konut and the Housing Development Administration (TOKİ).

    Source: http://www.dailysabah.com/real-estate/2016/04/30/saudi-firm-invests-500m-in-real-estate-project-in-istanbul

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    Monday, 28 March 2016

    Qatari CEO – Hamad el-Hedfa: There is only one Istanbul

    Top Manager (CEO) of one of the biggest property investment firms Mazaya Qatar, Hamad el-Hedfa says, “Property prices of Istanbul is lower than many metropolis in Europe. It is impossible to lose for one who invests in Istanbul. Because there is only one Istanbul. In medium and long term it is going to be a definite profit.” and underlines that the opportunities in the real estate market will continue in medium and long term.

    Commenting that Turkey is very essential for Qatar Hedfa said, in sense of economy Qatari people have big interest towards Turkey.

    Hedfa sees that the progress of the property sector in last 10 years as “Magnificent” and says “We believe the opportunities and resources will carry on in medium and long term in the near future.
    Hedfa explains that Turkey is reliable and convenient market in terms of investment according to them, believing strongly and not only consider but taking actions about investing in Turkey.  


    “In addition to the strategic macro cooperation and brotherhood between Qatar and Turkey, this new fund will attract attention of individual and corporate investors considering that there is a strong interest to Turkish property market.” Hedfa remarked.

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