Cityscape Global 2015 saw an influx of Turkish developers, showcasing investment opportunities in a number of diverse projects. Business Today catches up with Ceyda Carmikli, director of Turkish developer Nurol REIT.
- What kind of returns can GCC investors expect to reap in Turkey, as a percentage increase on investments in the GCC?
The investment increase differences between GCC and Turkey markets require a little subjective evaluation. From a general return on dollar basis investment point-of-view, an investor has the possibility to reap a 5+% return over a 5+years period.
- Are there any legal frameworks to protect such investments which may make them more attractive than an investment in GCC projects?
All foreign investors have the same structural advantage and legal framework as Turkish citizens in Turkey. There are some alternatives of corporate entity structural possibility which may create different taxations. Generally, all the investors are under the same protection from the same legal framework. The REIT basis company, which is regulated by Capital Market Board, is an important example of this. Also, the reciprocity law enables foreign investors to acquire in Turkey unconditionally, giving outside investors the same rights as local Turkish citizens, and protecting their investment purchases.
- Can you put a dollar value on the total investments Nurol is looking to raise?
When we checked all figures related over the last ten years, Turkey’s economy, in basis of GDP and income per capital, had important increment and respectively we had a rally in the real-estate area. Nurol Real Estate Investment Trust was found in September 1997 and by December 1999, 49% of its shares were offered in an initial public offering. With these developments in hand, Nurol REIT’s asset size reached $491 million and $830million as total investment by the end of 2014. Based on this, and Nurol’s esteemed reputation in the real estate market, we expect an influx of potential real estate investors who have long term investment perspectives.
- Why is the GCC in particularly been targeted for investment? Are you looking to any Eastern markets?
Nurol Holding already has presence in the region for over a decade with Nurol Construction offices and construction projects in Abu Dhabi & Dubai. Nurol REIT’s entry into the region invites GCC investors to form a business or build a home base in Turkey. The Turkish market has many advantages for GCC firms and individuals, such as the country’s growing economy in parallel to the young age demographic, as well as the new rules and regulations that enables foreign companies to merge into the market.
The reciprocity law has attracted a lot of foreign, especially GCC, investors to invest in the Turkish real estate market. Also, Turkey is centrally located, close to both the Middle East and Europe, and shares similar customs and cultural similarities that can be advantageous to GCC investors. GCC investors can greatly contribute to the dynamism of the Turkish business world as well as benefit from the political will of their respective countries to enhance their economic cooperation. We are always looking for foreign investment in Turkey to boost and improve the Turkish business worldwide, therefore we are always on the lookout for any potential investors but currently we are mainly targeting GCC investors.
Nurol REIT is currently developing three projects in Turkey
Nurol Life – 9,500m2 land plot in Seyrantepe, Istanbul, by award-winning contemporary architect, Hakan Kiran. The mixed use project will be 50 stories high, and will comprise of 440 tower flats and 26 terrace homes, along with 50 offices. It will house recreational amenities such as a pyramid shaped roof bar, pool and café, for its residents. The project will be completed by Q1 2017.
Nurol Park – situated in Gunesli, Istanbul, covers an area of 55, 000m2 and offers easy access to the two main highways in Istanbul that connect Asia and Europe. The mixed use building includes 43,200m2 landscape area, eight residential units, one office block, 84 Loft, 884 Tower, 544 Residence spaces. Facilities such as indoor and outdoor pools, fitness centres, etc. create a community and neighbourhood life, the concept is to cater to all the basic needs of a family and have everything within close proximity and at ease. The project is planned for completion in 2016.
Nurol Tower – located in one of the commercial centre of Istanbul, Mecidiyekoy, and built on 7,000m2 of land. The multi-purpose building offers first of its kind “HomeOfficeHome®” concept, providing the ideal homeoffice location to be productive whenever needed. It also includes Nurol Tower Bazaar, which has cafes, restaurants and shops, such as pharmacy, hair dresser, dry cleaner, as well as banks’ ATM. Nurol Tower is also a candidate of LEED Gold, striving to create an environment-friendly environment with 20% efficiency in energy consumption. It will be completed in Q3, 2015.
