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Singapore included $ 20 billion into the agenda about Turkish cities renewal.


6 marth, one of the most prestigious international real estate fair – MIPIM – started its work. It is taking place in French city Cannes and many different Turkish companies are taking part in it. The first day of the Fair was open with the meeting of the Turkish delegation, consisting of 11 companies and represented by the booth with the total area of 500m2.

At the conference, which was held under the name “REIT sector in Turkey - an iceberg in Europe”, participants talked about the potential in development of Turkish property and real estate market and about the model of the largest Turkish investment fund - Emlak Konut GYO. Haluk Sur, the Head of ULI Company and the member of Emlak Konut GYO Board, said that the potential for Turkish cities renewal draws the attention of foreign public funds and promotes the emergence of proposals to Turkish companies with a clear organizational structure.

$ 20 billions from Singapore.

After the meeting Haluk Sur, answering our questions, informed us that during about two months in Singapore State Investment Fund, that owns securities on the total sum of $680 billion, the official negotiations about the allocation of $20 billion onto the project of Turkish cities renewal took place. He also mentioned that: "Turkish companies with a clear organizational structure are expressing their wish and desire to invest social and personal sector. After meetings in Turkey, Turkish companies were also invited for negotiations into Singapore. If the present fund will make an infusion of $20 billion into this project, its total amount than will be not less than $ 80-100 billion"

Entering the League of International Cooperation

Taking into the attention that such type of cooperation will help Turkish companies to ‘break into’ world Top-10, Haluk Sur said: "Such countries like Singapore, Abu Dhabi and Qatar want to use their financial opportunities and make investments into safe areas. They start to explore Turkey with the aim of investing". Haluk Sur has also said that the cost of Turkish cities renewal will reach $ 400 billion, and adding to this amount the total capacity of all involved lower sectors will increase the sum up to $ 3 trillion. However, Turkey does not have such huge monetary means for this project, that’s why it may be done only with the help of foreign investors. In addition to this, municipalities, following the example of Kiptash, must provide the whole information about the renewal of the city to its residents.

The UK and Ukraine are interested in investing

Haluk Sur, the member of Emlak Konut GYO Board, said that after the session "REIT sector in Turkey - an iceberg in Europe" some proposals to hold and conduct meetings came from the companies which are interested in investing. Just after the session finished, one of largest and strongly developing UK companies – Premier – expressed its wish and desire to invest in Turkey. Ukrainian company SK Development in its turn announced the beginning of work over Ukrainian investment companies’ attraction to Turkey.

This will create the image of Strong Turkey

The General Director of İŞ GYO Company Turgay Tanes noticed the fact that every new year the number of MIPIM participants increasing, and assessed the situation as follows: "We are pleased with the fact that at the Fair our country and its sector are both represented by many individual entrepreneurs and companies. Another indicator of increased attention to our country’s real estate sector is MIPIM-2013 Fair, where Turkey will get the status of honorary country-participant. In this regard we strongly believe that in 2013 at the Fair our country will be represented by even greater number of both, individual entrepreneurs and companies, as well as we are sure that with the present consistency the image of Strong Turkey will be demonstrated in the best possible way".

We have fewer offices than even Warsaw does

At the session "REIT sector in Turkey - an iceberg in Europe" participated: the Executive Director of Rönesans Gayrimenkul Yatırım Company Cenk Arson, the Head of Reidin Europe Operations Company Mete Varas, the Deputy Director of PricewaterhouseCooper International Consulting Company in Turkey Engin Çubukçu and the member of Emlak Konut GYO Board Haluk Sur. The Executive Director of Rönesans Gayrimenkul Yatırım Company Cenk Arson said that the total office area in Istanbul is about 9 million m2, which is even less than in Warsaw. As to his personal mind, this problem can be solved by re-equipping of residential sector into an office one. Mr. Arsom has also noted that Turkey now takes the 2nd place among the potential of shopping centers’ investment in Europe.

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