urban transformation in turkey

WELCOME

Although the current geopolitical environment is bound to affect the macro-economic balance, the Turkish real estate industry have witnessed a healthy growth over the last decade. However, the market has attracted mostly medium-to-high-risk private investors and only a few institutional investors.

Today, political uncertainty and proximity to the conflicts in the Middle East are the main issues weighing heavily on investors’ minds. According to the Emerging Trends in Real Estate in Europe 2016 report, “last November’s general election may provide some political stability in the short term, but it may take longer for the investment environment to conform to the criteria of institutional investors.” Investors focus on new-build property because of the often fragmented title of existing buildings and refurbishments can also provide opportunities, the report has found.

Published in collaboration with GYODER, this guide you’re holding attempts to reveal current conditions of the Turkish real estate market as well as providing insight for global investors.

NETWORKING TURKEY

INVESTOR’S GUIDE TURKEY 2016 EDITORIAL 1

INVESTOR’S GUIDE 2016

Editor-in-chief Kuyaş Örs

Editor Sedef GüneşBurcu Öztaşkın

ProofreadingCüneyt Tabanoğlu

Advertising sales manager Eda Ünsalan Aytemur

Corporate communication director Mürüvvet Can

Graphic designAslıhan Özgen

Cover design Emre Çıkınoğlu

PublisherSirkus PublishingBüyükdere Cd. Kırgülü Sk.Metrocity D Blok K.4Levent, Istanbul

PrinterA4 Ofset MatbaacılıkOtosanayi Sitesi Yeşilce mah. Donanma sok. No:16 Kağıthane - Istanbul+90 212 281 64 48

All or some of the content (texts or images) cannot be used without written permission of Sirkus Publishing. Sirkus Publishing is not responsible for the accuracy of the information provided by the contributors.

Further information Networking Turkey+90 212 225 42 [email protected]

Publishing dateMarch, 2016

2 CONTENTS INVESTOR’S GUIDE TURKEY 2016

4 OUTLOOK

4 Assoc. Prof. Dr. ALI HEPŞEN Istanbul University Member of Center for Strategic Thinking in Real Estate (GISP) 8 Dr. YENER COŞKUN Capital Markets Board of Turkey, Prof. Dr. ALI ALP TOBB University of Economics & Technology10 NEŞECAN ÇEKICI GYODER, Board Member EPOS Property Consultancy and Valuation, Chairman of the Board12 A. FARUK GÖKSU Founding Partner, Kentsel Strateji

13 FACTS & FIGURES BY GYODER

36 REAL ESTATE LEADERS

38 AHMET AKBALIK Özak REIT - Ziylan Gayrimenkul - Yenigün Inşaat Partnership, Chairman39 AZIZ TORUN GYODER, Chairman40 EMIN GÜNAL DE-NAR GROUP, CEO41 FATIH KERESTECI Özak REIT, General Manager42 GÖKMEN BAŞPINAR Başpınar & Partners, Partner43 Prof. Dr. GÜRSEL ÖNGÖREN Öngören Law Office, Founder Partner / Senior Legal Counsel45 IHSAN ÇULHALIK Insay Yapı, President of the Executive Board46 IHSAN KENDIRLI Sistema, Chairman47 MAKBULE YÖNEL MAYA TSKB Real Estate Appraisal Company, General Manager48 MEHMET ERKTIN Omurga Real Estate Portfolio Management, Chairman49 MURAT KURUM Emlak Konut GYO, General Manager51 MURAT UZUN Projebeyaz International, Chairman of the Board52 ÖMER EGESEL Tekfen Real Estate Development, General Manager53 ÖZCAN TAHINCIOĞLU Tahincioğlu, Chairman54 SELÇUK ALTEN Pro^Ge, Founding Partner and Vice President56 SERDAR INAN Inanlar Chairman of the Board57 SERKAN GÜL Hergüner Bilgen Özeke, Corporate Partner specialized in Real Estate matters 59 SHAMSULLAH MOMAND State Corps Country Manager60 SIBEL KARAOĞLAN Drees & Sommer Director Turkey61 SÜLEYMAN ÇETINSAYA Artaş Inşaat, Chairman of the Board62 VEFA REŞAT MORAL Moral Managing Partner, LL.M

63 FEATURED PROJECTS

70 WHO’S WHO

72 ÆRIUM TURKEY74 BAŞPINAR & PARTNERS76 CEFIC78 DE-NAR GROUP80 DREES & SOMMER82 GYODER84 HERGÜNER BİLGEN ÖZEKE ATTORNEY PARTNERSHIP86 INANLAR88 INSAY YAPI 90 MACE GROUP 92 METRO PROPERTIES94 MORAL 96 OMURGA REAL ESTATE PORTFOLIO MANAGEMENT98 ÖNGÖREN LAW OFFICE100 PROJE BEYAZ 102 SISTEMA104 STATE CORPS106 TAHINCIOGLU 108 TEKFEN REAL ESTATE DEVELOPMENT110 VADISTANBUL

112 EVENTS

INVESTOR’S GUIDE TURKEY 2016

C

M

Y

CM

MY

CY

CMY

K

Büyük yalı sekterol 17X24 baski.pdf 2 24/02/16 15:54

4 OUTLOOK INVESTOR’S GUIDE TURKEY 2016

US MONETARY POLICY DETERMINES THE DEVELOPING COUNTRIES’ FUTURE Real estate industry is based on the balance of supply-demand due to the nature of the real estate sector. Due to the reasons such as the rapidly increasing population of Turkey for years, families which are fragmented as a result of the cultural changes, urbanization, increasing income levels and improving life standards, there is an increasing demand for the properties on a constant basis. Due to its connections with land market, building material, equipment, durable consumer good and labor markets, the real estate market and the housing including a major part thereof is very important also in terms of the invigorating of national economy. In 2015, when the growth rate of the construction sector and the Gross Domestic Product (GDP) Growth rates were compared, it was observed that in 2015, the growth rate of the construction industry was lower than the growth rate of GDP.

The confidence indexes published by TUIK (Turkish Statistical Institute) may have values in the range of 0-200 and the index being larger than 100 shows the optimism of the sector relating to the current and future period and the index being smaller than 100 shows its pessimism. While there was an increase of 8.71% in consumer confidence index data between January-December 2015, a decrease of 6.16% was observed in confidence index of the construction industry.

The point which we reached by the year of 2015 is that housing loans still have importance for the banking sector. Based on the latest announced data of 2015 (December 2015), the total volume of the housing loans granted by the banking sector has exceeded TRY 143 billion and the rate of failures/defaults in pay leading to enforcement proceedings being less than 1% points out to a healthy growth in terms of such loans. On the other side, it was observed that in 2015, the interest rates of the housing loans varied between 0.90% and 1.21% within the year.

Assoc. Prof. Dr. Ali HepşenIstanbul UniversityMember of Center for Strategic Thinking in Real Estate (GISP)

GDP Growth Rate Growth Rate of the Construction Industry

Q1 2015 2.5% -2.8%

Q2 2015 3.8% 1.9%

Q3 2015 4.0% 1.9%

Consumer Confidence

Index

ConstructionSector

ConfidenceIndex

Jan’15 67.7 81.1

Feb’15 68.1 87.5

Mar’15 64.4 89.9

Apr’15 65.4 88.8

May’15 64.3 89.9

Jun’15 66.4 88.7

Jul’15 64.7 84.1

Aug’15 62.4 82.1

Sep’15 58.5 77.2

Oct’15 62.8 73.2

Nov’15 77.2 78.2

Dec’15 73.6 76.1

INVESTOR’S GUIDE TURKEY 2016 OUTLOOK 5

Distribution within the sector in general - December 2015 Number of Banks Sector Shares Credit Volume Distribution (TRY)

Total Banking Sector 49 100.00% 143,085,638,000

Total Deposit Banks 32 91.65% 131,138,550,000

Public Deposit Money Banks 3 32.48% 46,478,380,000

Private Deposit Money Banks 11 34.52% 49,390,757,000

Foreign Deposit Money Banks 17 24.65% 35,269,413,000

Banks transferred to Saving Deposit Insurance Fund 1 * *

Development and Investment Banks 13 0.00% 842,000

Participation Banks 4 8.35% 11,946,246,000

THE COMPARISON TABLE OF THE RESIDENTIAL HOUSING PRICES AND THE RETURNS FROM THE FINANCIAL INVESTMENT INSTRUMENTS (1)

Residential Housing Prices * Financial Investment Instruments **Consumer

PriceIndexTurkey Istanbul Ankara Izmir

Interest on Deposits (Gross)

BIST 100Index USD EUR Gold

(Ingot)

2005 8.52% 7.94% 10.46% 8.68% 15.15% 62.30% -3.20% 10.90% 10.90% 32.48%

2006 10.52% 10.81% 11.52% 8.85% 15.20% 1.40% 5.90% 17.90% 29.80% 34.52%

2007 7.24% 9.20% 0.48% 3.43% 16.99% 41.90% -17.70% -9.20% 5.90% 24.65%

2008 -13.97% -16.19% -12.80% -6.81% 15.46% -53.50% 31.20% 22.50% 34.80% *

2009 2.68% 0.56% 3.31% 9.17% 15.91% 95.50% -2.40% 4.60% 33.50% 0.00%

2010 2.67% 5.60% 2.39% -3.53% 7.93% 31.53% 1.01% -8.53% 24.77% 8.35%

2011 7.78% 9.07% 8.82% 8.60% 7.37% -20.19% 22.85% 22.36% 44.76% 100.00%

2012 17.35% 19.65% 14.30% 17.10% 7.10% 45.77% -4.40% -4.77% -1.91% 91.65%

2013 13.63% 17.48% 9.67% 10.23% 6.10% -7.76% 15.96% 21.06% -16.14% 32.48%

2014 16.89% 20.97% 11.43% 11.25% 4.95% 18.79% 11.06% 0.36% 9.65% 34.52%

2015 22.26% 24.39% 15.03% 19.90% 4.96% -12.85% 27.25% 12.37% 13.47% 24.65%

(1) Nominal Increase and Returns

*Source: REIDIN.com

** Source: TUIK


When the volume forecasts of the housing loans were assessed in 2016, Senior Data Analyst of REIDIN Olgun Aydın stated that, “When the difficulties which may arise due to Fed (U.S.A. Central Bank) giving signals of increases in interest rates and Turkey’s dependence on foreign financing are considered, it seems inevitable that the economy of Turkey would be adversely affected like the other Fragile 5 countries. Based on this, it is required to say that the general opinions are that the sector would be stable during the first quarter of 2016 and the rate of the loan increase would decrease relatively and that the expectations for the first quarter of 2016 are that a credit increase of TRY 3 billion may occur”. When the period between 2005 and 2015 was examined, it was observed that since the risk return expectation under BIST 100 Index was high, as of the years the variance of returns was also high. We encounter a similar situation in American Dollar and Euro. Gold which is the most popular investment instrument during the recent years suffered from losses in 2012 and 2013. Based on the diminishing interest rates on bank deposits, which bring regular return to the investors, in line with the decreasing interests based on the economic developments in Turkey during 2000’s, each year the investors started to gain less return compared to the previous year. The residential investments which can be deemed as the conventional investment instrument of Turkish investors have always become a good alternative especially in the long run compared to other financial investment tools. When the increases in residential building prices were observed, it can be seen that during the last 4 years, a rate of increase which is double in the rate of inflation is maintained and it is possible to

say that especially during the year 2015, the increase in the prices of the residential buildings was more than double the rate of inflation. By means of the reforms and fiscal discipline implemented especially during the years following the financial crisis in 2001, Turkey became the 18th largest economy of the world. More important is that with the effect of global liquidity abundance and the low financing costs during the same period, Turkey has become a country providing significant outsourcing and directing this to the real estate markets. However, when we look at the period subsequent to 2015, it is possible to say that the significant risks would also affect the decisions on the sector. In this direction, the fact that the monetary tightening expected from FED becomes a significant turning point for the markets has a determining status in terms of shaping the national economy and the sector in 2016.

C

M

Y

CM

MY

CY

CMY

K

buyukyali ilan 210x270.pdf 2 29/02/16 16:27


WHAT IS THE MESSAGE OF LOWER HOUSING CREDIT VOLUME IN TURKEY?“Reality is merely an illusion, albeit a very persistent one.” Einstein

REALITY AND ILLUSION THROUGH NUMBERS To explain both facts and “statistical” lies, one may utilize the numbers. However, it seems paradoxical, the world of numbers may equally close both reality and illusion. For example, you may define the analysis period to present best part in whole time series. This might be very good idea to sell the good news to information users. Or, if you would like to focus on some worst cases, you may pick the worst numbers. So, this approach may also work to stop selling something. To minimize information asymmetry in economic analysis, one may focus on both numbers and the facts behind these numbers. This opinion article clarifies the story of housing credit volume in 2015 in Turkey by also analyzing its’ forthcoming trend.

FACTS OF TURKISH HOUSING CREDIT MARKET Housing credit is one of the critical barometers of housing market and general economy. So, analysis of housing credit market provides both summary information of recent trends and also gives an idea of near future. Above figure suggests several implications for both past and the near future of the housing (credit) markets of Turkey. The first observation is that housing credit has been booming in Turkey since 2002. According to Banking Regulation and Supervision Agency (BDDK) data, housing credit volume has increased from USD 0.2 billion as of 2002 to USD 49.4 billion as of 2015. Second observation is that the interest rates and housing credit volume have counter relation, as expected. So, analysis term generally suggests that the lower the interest rates results in higher credit volume (or vice versa). The third

Dr. Yener CoşkunCapital Markets Board of Turkey

Prof. Dr. Ali AlpTOBB University of Economics & Technology

Total Housing Loans (million $) Interest Rates on Housing Credit (%)

Source: Author (by Central Bank of Turkey and Banking Regulation and Supervision Agency data)

HOUSING LOANS AND RATES IN TURKEY (2002-2015)

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

Tota

l Hou

sing

Loa

ns (m

illio

n $)

201520142013201220112010200920082007200620052004200320020

10%

20%

30%

40%

50%

Inte

rest

Rat

es o

n H

ousi

ng C

redi

t (%

)


observation is that negative economic shocks may result in higher mortgage rates and eventually affect housing credit volume negatively. In this respect, negative impacts of global financial crisis is clear in 2008. The fourth observation is that the housing credit volume dropped to 49.4 billion USD as of 2015 from 54.1 billion USD as of 2014. This suggests that nearly 8.7% drop. It is also interesting to note that annual mortgage rates have increased from 11.3% to 14.7% in 2015.

NO ONE LOVES THE MESSENGER Sophocles says in Antigone that no one loves the messenger who brings bad news. But, as the academic, we should ask whether this lower credit volume would be a new normal and also it represents first signal of negative market conditions in Turkish housing markets. However, these are complicated questions, one may note following points in his/her analysis. First, it seems that higher mortgage rates were the main reasons of the recent drop in housing credit volume in Turkey. So, if the rates would not go up further, this picture may not be a new normal. Second, taken into account literally booming housing demand, supply and sales, it is not good idea to think that Turkish housing market would enter in a bad market mood.

SHORT-TERM VS. LONG-TERM DYNAMICS In sum, the facts suggest some bad news on housing credit volume and mortgage interest rates for 2015. Moreover, the market performance will probably depend on the interactions between mortgage rates and housing credit volume in the short term (i.e. in 2016), among other variables. So, taken into account growing economic-politic risks in/around Turkey, one should be careful for 2016, but not very pessimistic way. What about long-term? We will definitely see good days thanks to endless dynamism of the country.


NATION-WIDE CONSENSUS IS NECESSARY ON URBAN TRANSFORMATION POLICIES The endeavors that have been carried out under the name “urban transformation” in Turkey, began in early 90’s in Ankara. By testing new laws and law changes that include urban transformation and improvement, problems experienced by the public and the property owner during pilot applications through the process was observed and these experiences were combined under the law no. 6306. With the inurement of the law in 2012, urban transformation activities accelerated. The process that has started in 2012, progressed rapidly. Until today, 40 “risky areas” in 17 districts in Istanbul only have been determined. The total of these areas reached up to roughly around 11 million m2. It is estimated that around 1% of the built-up areas across the province is declared to be risky.

Through analyses obtained in accordance with certain assumptions, it is calculated that the total need for transformation regarding earthquake and urban renewal in Istanbul is 870,629 independent units (377,097 [47%] independent units regarding earthquake risk, 493,532 [57%] independent units regarding urban renewal).

CENTRAL ADMINISTRATION AND TOKI MODEL LEAVE ITS PLACE TO ADMINISTRATION-OWNER-INVESTOR COOPERATION The input of private sector to urban transformation endeavors increases daily. Projects underwent through collaboration of central authority and TOKI leaves its place to the partnerships that are formed by local administrations, owners and

Neşecan Çekici- GYODER, Board Member - EPOS Property Consultancy and Valuation, Chairman of the Board

TOTAL NEED FOR TRANSFORMATION REGARDING EARTHQUAKE AND URBAN RENEWAL IN ISTANBUL

INDEPENDENT UNITS REGARDING URBAN

RENEWAL

INDEPENDENT UNITS REGARDING EARTHQUAKE RISK

Source: Epos Istanbul Provincial-Wide Urban Transformation Potential Areas Analysis

57%

43%


investors. This three-party partnership structure prepared and finalized many projects to this day. However, certain problems and conundrums created by parties in this structure, requiring solutions, are encountered.

DEVELOPMENT RIGHT TRANSFER AND SWAPS ARE IMPORTANT TOOLS FOR A NEW APPROACH Until now, almost all of the the projects underwent were either through expropriation verdicts of the central authority or TOKİ, or through investors conducting projects through construction right in return for flat type of agreements on areas they find profitable. Neither of these could create a sustainable urban transformation system. The procedure of capital budget renewing millions of residences and/or private sector operating urban transformation endeavors only where they see profitable investment, fails to satisfy the need for renewal of risky building stock. Thus the public and the investors need to develop new approaches and models to be applied to urban transformation. Development right transfers and swaps are thought to be important tools when developing new approaches.

AGREEMENT ON LOWEST COMMON TERMS BRINGS SUCCESS With regard to the experience we gained through our previous and current urban transformation projects, we can say that resolution efforts are the basis of urban transformation endeavors. The endeavors in which parties understand each other, mutual trust is created, an unbiased and transparent agreement platform is formed achieve success rapidly. Yet projects that an agreement on lowest common terms could not be accomplished, do not achieve success and profit however profitable they are on paper. Ignoring the fact that urban transformation is a social phenomenon would be a big mistake. It would be erroneous to transform, without preparing plans that take the dynamics and future projections of the area into account. The

cooperation of the public, private sector and civil societies are the primary subjects and the public should absolutely be in coordination for these processes to be managed correctly. Urban transformation policies should be established through a nation-wide axis of area utilization and management, with nation-wide consensus and around a model concerning nature and green-fields as well as disaster management. It should not be forgotten that while processing the transformation, if a decision such as increasing the density, which is incompatible with the overall development planning system, is made, transportation and infrastructure problems are going to be insolvably complicated. Urban transformation; a new urban system, a historic opportunity and a historic responsibility at the same time. From energy conservation, decrease in crime rates and unemployment to aesthetic and health conceptions of cities, it is a macro reform. To make use of this opportunity, all parties should look at the bigger picture and bear the common gain in mind instead of considering their own benefits only.


ISTANBUL: NEW OPPORTUNITIES, NEW ECONOMIES Since the 1990’s, the interaction of real estate and finance industries has brought about a rapid change and evolution process for Istanbul. The pace of transformation of industrial utilizations to service utilizations, affected the variety of service industries. Today, Istanbul is advancing its investments through such themes as culture and tourism, finance and service. Marmara is becoming an important transition region. Large infrastructure investments such as piers, highways, bullet train and energy lines, put all the cities in the region into interaction. Projects on two major gateways of Marmara Region, the ongoing construction of Izmit Bay Passage and planning of Çanakkale Boğazı (Dardanelles) Passage are to create alternative opportunities for Marmara to support itself. As we consider massive projects such as the two airports that are to be constructed on the North-South axis of Istanbul and Marmara Region, Izmit Bay Passage Highway, Dardanelles Crossing and Eurasia Tunnel; we may state that cities of the region such as Çanakkale, Tekirdağ, Istanbul, Çayırova, Yalova and Bandırma will be affected by these investments. Istanbul’s future depends on integration to the global economy. With its strategic location and new improvement plans, Istanbul has taken the role of “leader city” in Eurasia, Europe and Middle East. Furthermore, Istanbul is beginning to discuss the investments to be made in order to achieve the goal of Turkey to become an innovation and information center. The fact that the Istanbul vision is set as to be the strategic leader city of the Eurasia region, strengthens the themes of finance, logistics, tourism and culture.

3 FUNDAMENTAL STRATEGIES FOR RECONSTRUCTIONStrong collaborations between central and local governments accelerate the actualizations of significant investments.

In this context, it is important to make sure these three fundamental strategies, three important investments are implemented.

Three Fundamental Strategies:1- Re-connection2- Re-generation3- Re-settlement Operating on the 1st fundamental strategy, projects such as the bullet train Marmaray that connects Asian and European sides of Istanbul, the Eurasian Tunnel, the 3rd bridge which is expected to be completed this year, belt-highways and the 3rd airport which is expected to be completed in 2018, equip Istanbul with strong connections, initiating a rapid transformation process. To follow the 2nd fundamental strategy, the industry focused transformation of 10 million m2 capacity of construction sites is going to make Istanbul economy resilient. As for the 3rd fundamental strategy, the two new residential projects on East and West sides of Istanbul with a potential of 500,000 residences, are going to create new opportunities for transformation of risky buildings as well as meeting the demand on new homes. In conclusion, Istanbul is actualizing its potential to be a leader city in its region with important investments. The added value these above mentioned investments will create is quite important particularly for real estate and finance industries to get stronger. In addition, in its rapid improvement and transformation process, Istanbul is presenting opportunities for investors of varied industries under themes of design, innovation and creativity. The social entrepreneurship hubs that have been establishing in Istanbul in the past few years, create new financial areas for young local and international investors. When the new opportunities Istanbul presents for real estate and finance industries meet new economies, the results will be exponentially positive.

A. Faruk GöksuFounding Partner, Kentsel Strateji

FACTS & FIGURES>>> BY GYODER

14 FACTS AND FIGURES INVESTOR’S GUIDE TURKEY 2016

INVESTOR’S GUIDE TURKEY 2016 FACTS AND FIGURES 15

15 YEARSIN PROJECT & CONSTRUCTION

MANAGEMENT SERVICES

M E M B E R O F R L B E U R O A L L I A N C E

[email protected]: +90 212 352 2021

ATAKULE ALIŞVERİŞ MERKEZİ

KARPAZ HILLSIDE TATİL KÖYÜWEST SIDE İSTANBUL KONUTLARI

FORUM KAYSERİ ALIŞVERİŞ MERKEZİODTÜ TEKNOKENT KULUÇKA MERKEZİATLASPARK İŞ VE ALIŞVERİŞ MERKEZİ

MARMARA FORUM ALIŞVERİŞ MERKEZİ DOHA KORNİŞ PROJESİ FORUM İSTANBUL ALIŞVERİŞ MERKEZİ AXA SİGORTA GENEL MÜDÜRLÜĞÜ

ORTAKÖY OTEL PROJESİ SANTRAL İSTANBULTAURUS ALIŞVERİŞ MERKEZİ TERRACITY ALIŞVERİŞ MERKEZİ

RADISSON BLU ÇEŞME FORUM MERSİN ALIŞVERİŞ MERKEZİ PARK HYATT MAÇKA PALAS KARTAL KENTSEL TASARIM YÖNETİMİ

İŞBANK KONSER SALONU AL-TAHADY ÜNİVERSİTESİ, LİBYASARIKONAKLAR İŞ MERKEZİ

BÜYÜK TARABYA (YAPIM ÖNCESI DÖNEM)

ROKETSAN SANAYİ YAPILARI

HOLLANDA BÜYÜKELÇİLİĞİ FORUM İSTANBUL ALTYAPI İŞLERİ MAÇKA OTELİ (YAPIM ÖNCESİ DÖNEM)

SARIKONAKLAR İSTANBULT. İŞBANK GENEL MERKEZİATATÜRK HAVALİMANI DIŞ HATLARRADISSONBLU ANKARA

FORUM TRABZON ALIŞVERİŞ MERKEZİ BİLKENT KONUTLARI ÇELİK PALAS (YAPIM ÖNCESİ DÖNEM)BÜYÜK EFES (YAPIM ÖNCESI DÖNEM)

REAL ESTATE LEADERS>>>

38 REAL ESTATE LEADERS INVESTOR’S GUIDE TURKEY 2016

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? 2015 was a “year of investment” for the real estate market. We believe that the market will continue to grow in 2016 and will develop various projects according to the needs and expectations of the investors.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? As Özak REIT, Ziylan Gayrimenkul, and Yenigün Inşaat, we joined our forces in 2014 with the aim of creating a brand new value worthy of Istanbul. We won the tender issued by Emlak Konut GYO for a land of approximately 111,000 m2, and undersigned the contract that has the highest total sales revenue* in the history of Emlak Konut. We designed our project together with the architectural firm Chapman Taylor, which has created world-class projects. We brought together the infinite blue of the sea, each tone of green, the historical texture, unique flavors and a warm neighborhood life at Büyükyalı, reflecting the timeless soul of Istanbul. Near the Historical Peninsula, we will conserve the historical texture of Istanbul by transforming unique historical buildings into living spaces again at Büyükyalı, with an architectural design that blends the past with the future.

*Based on the contract of “Istanbul Zeytinburnu Kazlıçeşme

Revenue Sharing Work in Return for Land Sale” that was signed

on 08-Apr-2014.

Özak REIT - Ziylan Gayrimenkul - Yenigün Inşaat Partnership Chairman

AHMET AKBALIK: “WE WILL CONSERVE THE HISTORICAL TEXTURE OF ISTANBUL BY TRANSFORMING UNIQUE HISTORICAL BUILDINGS INTO LIVING SPACES AGAIN.”

INVESTOR’S GUIDE TURKEY 2016 REAL ESTATE LEADERS 39

How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? The year 2015 was a difficult one in terms of various issues. Unfortunately, it was a year shadowed by the political ambiguity caused by the elections in Turkey, the fluctuations in exchange rates and sad events taking place in our country, in our region and in the whole world. On a different note, 2015 was a year in which the Turkish real estate market proved its attractiveness and once again the investments in real estate demonstrated the sector’s reliability as it resisted the fluctuations in the market. Over the last decade, Turkey’s real estate market has been continuously growing. Despite concerns of stagnation which persisted in 2015, Turkish real estate sustained its growth and expanded, gained depth, increased its product quality and continued to launch numerous projects with high architectural standards which have won many international awards. Major investors did not alter their strategies, and investments and sales continued while the interest of foreign investors increased. The strength of US Dollar against the weaker Turkish Lira has created attractive opportunities for foreign investors. Additionally, domestic investors who wished to increase the standards of their residences or offices or regarded real estate properties as reliable investment tools continued to make purchases. Due to the elections some investors had halted their investments, but with the re-establishment of the political stability in the last two months of the previous year, we observed that investors accelerated their investments in properties. We presume that the total

amount of sales will increase 5% by the end of the year compared with the figures of the previous year.

What will be the new trends for the real estate market in the upcoming period? The Turkish real estate market offers reliable, attractive and lucrative projects for foreign investors. The Reciprocity Law should be considered as an important incentive in this sense. As the diversity in real estate properties increases in addition to the residential offering, offices and shopping centers, structures such as logistics and entertainment centers will gain increased impetus. Individual foreign investors in Turkey are primarily interested in the residential sector. One of the most important reasons for this are the recent significant accomplishments of the Turkish real estate sector in bringing high-quality real estate projects to the market. Moreover, investments in the hotel sector surged in recent years. On the other hand, the healthcare and dormitory sectors do not quite draw the attention of investors yet as they are still unfamiliar with these sectors. As developers of the Turkish real estate sector, we need to diversify the types of properties in the upcoming period.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? Istanbul being in the first place, we observe that foreign investors are particularly interested in cities such as Yalova, Bursa, Trabzon and Antalya. Weather conditions, climates and greenfield sites play important roles in foreign buyers’ investment decisions. Cities in Turkey which are considered as bases of production and industry, such as Bursa, Denizli, Manisa and Konya, have their own institutional foreign investors as well. These cities should be on the radar of individual investors too. Moreover, there is also a considerable demand for real estate in cities such as Izmir and Muğla which are developing in terms of tourism.

GYODERChairman

AZIZ TORUN: “INDIVIDUAL FOREIGN INVESTORS IN TURKEY ARE INTERESTED IN THE RESIDENTIAL SECTOR.”


How do you expect the recent macroeconomic developments in Turkey and the world will affect the real estate market in Turkey? It looks like there will be some major changes within the Turkish real estate industry. State policy was very decisive and it will be decisive in the future too. Our focus is on the education development market which continues to grow rapidly. However, considering the office and residential markets, sales volume is more than demand due to the general shortage. And it seems to be less than previous years.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? We are managing, upgrading and improving the property portfolios of our investors. The demand is continually increasing within the private school sector. Closure of the private training centers in Turkey has effected the construction volume positively within the education market and our business volume has been increased as well. The education development market is expected to expand across the country within the next decade. In fact, there is a strong demand for private school developments and operational investments from Arabic countries already. Private school investments seem to be the best option regarding ROIs and corporate social responsibility practices. From an investor’s point of view, school buildings, in general, return the investment cost between 10 and 12 years. But, of course, this depends on the land

value and amount of the lease contract. Generally, for a full campus (k12), the construction area should be around 8,000-12,000 m2 with maximum 4 floors above and 4 floors below the ground to serve between 800 and 1,200 students.

What will be the new trends for the real estate market in the upcoming period? How does the market get affected by the changes brought by the information age? Educational property will continue to be the most popular trend in the market with creating many advantages in this market which has still has not reached the attention of investors. Especially, REIT portfolios should involve this type of property. We are expecting that the market share will be three times more in the next five years which represents only 5-6%. Thus, there is an incredible opportunity for real estate investors and REITs.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? During 2015, we displayed a high business performance and met all our targets. The company started as an incorporated company and it is now a group of companies including the services of project development and investment, architecture, and construction. In 2015, DE-NAR extended its capabilities with different services and finished 14 k1-school projects successfully and awarded with “the best school design of 2015” by tutors. We are now working on new projects and we have also started to manage our own investments in educational property market. As a development company specialized on educational real estate projects, we will continue to help investors which are actively looking for 10-12 years of ROIs. Our aim to be acting as a development company for educational real estate projects and work for our investors whom are actively looking for 10-12 years of ROIs.

DE-NAR GROUPCEO

EMIN GÜNAL: “OUR FOCUS IS ON THE EDUCATION DEVELOPMENT MARKET WHICH CONTINUES TO GROW RAPIDLY.”


How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? As Özak REIT, last year we aimed at supplying the financing of our company by selling almost all of the Hayat Tepe residences, getting full occupancy, and maintaining our fixed rental income at our real estates intended for investment, such as Bulvar 216, Iş Istanbul 34, 34 Portal, Metro Grossmarket; and we achieved all these objectives. As one of the leading real estate companies of Turkey, we have crowned this achievement by ranking 57th on Forbes list of top-100 Turkish companies. In 2016, we raise our targets even higher and say that we will be in the top 3 in 5 years within the real estate market. In addition to the Büyükyalı project, undersigning the contract that has the highest total sales revenue* in the history of Emlak Konut REIT, we will continue to add value to life with our projects at the important locations of Turkey such as Balmumcu, Göktürk, and Mahmutbey in Istanbul, Alsancak in Izmir, Didim in Aydın, Demre in Antalya.

* Based on the contract of “Istanbul Zeytinburnu Kazlıçeşme

Revenue Sharing Work in Return for Land Sale” that was signed

on April 8, 2014.

Özak REITGeneral Manager

FATIH KERESTECI: “WE WILL CONTINUE TO ADD VALUE TO LIFE WITH OUR PROJECTS AT THE IMPORTANT LOCATIONS OF TURKEY.”


How do you expect the recent macroeconomic developments in Turkey and the world will affect the real estate market in Turkey? After a modest expansion in 2015, the global economy is expected to grow next year at 3.6% and Turkey at around 3%. Turkey’s economy is growing faster than the rest of the world. According to OECD, Turkey is expected to be the fastest growing economy in 2017 with a growth rate of 4.1%. Despite the geopolitical crisis and political uncertainties, Turkey has shown a remarkable rate of growth. Hence in 2014, investments have slowed down, yet after the November 2015 elections, foreign and local investors started over to show interest in real estate market. Turkey’s strategic location between Europe, the Middle East and Central Asia and almost 78 million population let the country to have access to 1.5 billion consumers. As a result, Turkey had a profound economic transformation over the past decade. In light of these facts, despite the change in oil prices, FED policies, recession of Russian economy, regression of Chinese economy and high inflation rate in the country, Turkey’s economy and related to this its real estate market are still expected to grow and stay attractive for the investors.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? Turkey has made improvements and amendments to certain legal regulations pursuant to reciprocity law in the recent years. As a result, urban renewal and mega projects were the new trends of 2015. A revival is observed in residential market. Istanbul-

Izmir highway, Marmaray, Canal Istanbul, the third bridge and the third airport will lead the market to invest in new locations. Oxford Economics’ forecasts indicate a 3.2% growth in retail sales between 2014 and 2018, higher than any mature European markets. There has been a 7% increase in leasable areas in the retail sector, from 9.49 million m2 to 10.24 million m2. At the end of 2014, there were 350 operational shopping centers in Turkey. The number of shopping centers, including the projects that have already been announced, is expected to exceed 400 by 2017. In a nutshell, we expect a faster development in Turkey than we had in previous years. The market is diversified with residential real estates, office places, hotels and shopping centers. Even if some thinks that this growth is a sign of housing bubble, OECD and World Bank reports expect Turkey to be one of the fastest growing and promising economies in the world.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? We believe that despite the high level of investment in Istanbul, there are still many opportunities to invest in. As mentioned before, new mega projects and urban renewal projects are on the verge of changing the silhouette of the market, as well as of Istanbul. We observe that especially the areas around the new projects Marmaray, third airport etc. will satisfy the expectations of foreign and local investors. Aegean region and Black Sea region are the emerging areas following Marmara region where Istanbul is located, and which has the biggest share in real estate market. Aegean region has been always popular amongst foreign investors by virtue of its landscapes, favorable weather during the year and its nature. However, since the completion of Ordu-Giresun airport and future plans of the major logistics and energy investments in the region, Black Sea region is becoming a rising star. Together with the depreciation of the Turkish Lira, these changes in

Başpınar & PartnersPartner

GÖKMEN BAŞPINAR: “TURKEY’S ECONOMY IS GROWING FASTER THAN THE REST OF THE WORLD.”


transportation and infrastructure are expected to boost investment activity in the region not limited to this sector. Trabzon and Samsun are expected to be the fastest growing cities. Istanbul is expected to be always the top destination for all sorts of investments. However, we believe that cities such as Ankara, Izmir, Antalya will not remain behind Istanbul. Bursa, Kocaeli, Ankara and Erzurum are favorable locations to invest in retail and real estate sectors due to the future large-scale projects.

What will be the new trends for the real estate market in the upcoming period? How does the market get affected by the changes brought by the information age? Turkey’s real estate market is recording a certain rate of growth each year, since November 2015 elections, the political uncertainties have been eliminated, investors and consumers seem to have a higher appetite to invest in Turkey. In terms of the annual price growth index, with an 18.5% rate of increase, Turkey emerged as the best-performing housing market in Europe. Housing demand is higher than housing supply which indicates growth potential, in compliance with the earthquake regulations high quality housing systems are expected to be needed. Especially in Istanbul, the need of residences and plaza buildings is increasing. Consumer demands on new constructions completed under restructuring process concerning the urban renewal revealed that high-tech housing systems will be required in upcoming years.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 meet your expectations? What are your goals for 2016? Even though the interest of some foreign investors were kind of on hold until the political situation of Turkey got clear, we can say that 2015 was a good year for our firm. We were right at our expectations and we believe 2016 will be a better year.

How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? The investments made within the last decade in the real estate sector of Turkey provided significant profits to investors as well as consumers, buyers of houses and offices. I assume that, in the next decade, we will extend our revenues and our industry by doing more work and completing many projects. We entered the real estate development sector with zoning law cases at the end of the 1990s and now we are proudly watching our real estate investors, contractors and architects collecting awards worldwide who carried out successful projects and we are proud of the many projects that we were involved within the frame of legal works. As a result of our 20 years of experience in the real estate sector, we can say some additional legislative regulations will be introduced and the initiated tax incentives will be continued for even greater success. We have seen that as a result of our experience in hundreds of litigation cases in cancellation of zoning plan, building permits and zoning plan changes; especially in zoning field, the implementation of “acquired right based building permit” principle and, if necessary the amendments in the Turkish Constitution, and giving assurance to the international real estate investors will be on the agenda of the government during the coming days. By these developments, we believe that the State Council or administrative courts will not be able to stop projects.

Öngören Law OfficeFounder Partner / Senior Legal Counsel

PROF. DR. GÜRSEL ÖNGÖREN: “WE WILL EXTEND OUR REVENUES IN THE NEXT DECADE.”


What will be the new trends for the real estate market in the upcoming period? The new trend in the real estate market is urban transformation. Turkey has decided to renew the house stock amounting to 7 million most of which were made of non-standard and not earthquake resistance building as a result of the 1999 earthquake which caused 20,000 deaths and 200,000 building became inhabitable. Nearly 10 years, financial and legal infrastructure and strategies have been prepared for urban transformation. In urban transformation some building to be demolished and rebuild, some will be improved and some quarters as 100,000-200,000 m2 will be demolished and reconstructed step by step. Urban transformation is being promoted by the state. If houses produced under urban transformation scope have an area under 150 m2, they are subjected to only 1% of VAT. Normally the VAT rate is between 8-18%. In addition to that there are not land registry charges if the housing and offices produced and sold for the first time. For housing produced in other areas is subject to 4% of charges. Also, in the scope of urban transformation, municipalities do not charge building permit fees. (This fee is about 2% of construction done on normal land). Moreover, within the scope of agreements signed with the owners of land for construction and housing pre-sale agreements which are not subject to notary fees that amounting to 1% of the land value. As a result of that, the State incentive is almost 25% in urban transformation. However, such an incentive does not apply in other vacant land. In short, the investors are beginning to gain 25% in urban transformation. While providing legal consultancy to public institutions, municipalities, investors and construction companies, building sites we found opportunities to share deficiencies, defects and our propose solutions in urban transformation with the Ministry and bureaucrats. We can say that in

accordance with our solutions, Urban Transformation Act will be amended in the coming months. The dense urban centers where old buildings take place will be divided into 30,000-40,000 m2 parts with the new legislative changes. After that, construction and real estate investment companies will be reached an agreement with owners of the buildings with the purpose of quality office and mixed projects in the city center. The agreement of 2/3 majority of building owners in the area will be sufficient and if the other building owners has not reached an agreement then their building will be sold by auction to the other lived there or to be nationalized by the state. By this way, new project and urban transformation cannot be prevented by owners of old buildings. As a result of it, we have both earthquake-resistant buildings and modern living and working areas. In these areas, for the moment, sales price per m2 is approximately USD 1,500-2,000, but new price for the project realized is expected to be 7,000-10,000 USD. As a result of the experience, we have gained in real estate projects and industry organization as GYODER; we believe that our profitability and our success over the past decade in the real estate sector will be doubled in the next decade.


How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? Political stability, after two elections held in 2015, is extremely important in overcoming the problems regarding the economic environment. We believe that although Turkish Lira depreciation against the developed countries currencies and the increased interest rates slowed the economic growth, in 2016 Turkish economy will be better off compared to many other emerging economies and Turkey’s demographic structure, geographical features; and economic activities will continue to be decisive in the region.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? The Turkish real estate market has experienced significant growth in recent years, achieving prominence in the international arena. Urban transformation and mega projects dominate the agenda, particularly in Istanbul with projects such as Marmaray, Canal Istanbul, the third Bosphorus bridge, and Istanbul’s third airport. Likewise, we believe that construction and real estate will continue to be the decisive role in the coming period, thanks to the powerful performance of the economy. With half of the Turkish population under 30-years old, low unemployment and the strong economic performance, domestic property demand also looks set to grow. Additionally, half the country’s housing stock needs to be replaced or renewed then the construction boom continues to expand.

Insay YapıPresident of the Executive Board

IHSAN ÇULHALIK: “DEVELOPMENTS IN THE REAL ESTATE FINANCING METHODS WILL BE THE DRIVER OF THE INDUSTRY.”

Especially, the developments in urban renewal areas was a major topic of the real estate sector last year. Poor quality construction and lack of supply in city centers across the country, especially for the near future will on the agenda for urban transformation.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities?With its population of 15 million, Istanbul is the main driver of the Turkish economy. Housing demand and housing prices in Istanbul are expected to increase continuously and the commercial life will reach the higher level. These conditions naturally will create an increased momentum for office and rental projects. Istanbul also still offers niche zones for e-retailing warehouse, healthcare buildings, student housing, automated car park buildings. On the other hand, the capital of Turkey, Ankara, continues to be the center of politic, economic and social life. With increasing population and increasing commercial life, housing demand in Ankara also will increase the demand for rental space.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? In 2015, our company continued to complete the corporate structuring. Moreover, significant progress has been achieved towards completion of the several land development process. In the coming period, construction, sales and marketing process will begin for 8 projects. We got our building permits for Pendik housing project. We have two mixed-use projects in Pendik and four residential projects in Sarıyer. Beykoz and Yenisahra urban renewal projects are also underway, where we are completing the agreements with landowners.


Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? Real estate investments in Turkey are in a big continuing progress. The market penetration becomes multi-dimensional, as where new and corporate developers are taking place and existing developers become more agile and corporate. Big cities, mainly Istanbul and Ankara, are becoming massive development projects, and the tendance of the projects is heading city centers and upper scale developments. Primary locations are never going to be saturated, secondary areas are in need of careful development methodology. Surveys show clearly, Anatolian cities are not going to be saturated easily, nevertheless the profit margins and the volume for development and conversion are low. Most of the market leader developers are heading rather abroad than Anatolian cities.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? Sistema Teknolojik Yapı, as the premium multinational office fit out projects market leader in Turkey, was very active in the medium to large-scaled projects in 2015 and ongoing. 2015 helped us to challenge the activities and different fields to consider. Therefore, keeping up the market leader position in multinational office fit out projects, Sistema has concentrated to hotel construction and fit out projects on the upper to medium segment including 3 major projects ongoing. Furthermore, Sistema becomes an active

player for the residential development and construction projects at primary locations on the Asian side of Istanbul. For 2016 forecast, Sistema will track and observe the market dynamics, and proceed to keep up the office fit out market leader position with a massive and aggressive market coverage, furthermore balance the residential project developments in a scale, and finalize existing hotel contracts successfully for the coming season. Sistema financially will act more conservative in 2016, and consider the regional political and economical challenges carefully.

SistemaChairman

IHSAN KENDIRLI: “THE MARKET PENETRATION BECOMES MULTI-DIMENSIONAL.”


What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? In 2015, several factors, such as the increase in foreign exchange rate, two elections, changes in housing loan interest rates and urban transformation, seriously affected the demand. The average price of a residential unit in Istanbul has increased by 40% in the last 5 years. The increase was around 25% last year. One of the important factors affecting the growth in housing sales, “urban renewal” is a new term that we got acquainted through the law on Renovation of Disaster Risk Buildings, numbered 6306. The term refers to the practice of demolishing the buildings that were determined to be old and vulnerable to earthquake and constructing new ones with the support given by state, inclusing housing benefits and fee and tax advantages. In the scope of the law, areas in need of renewal can be determined by the Ministry or determination can be made at the request of the right owners within the area. Even though the areas that the buildings are on, are not declared to be “urban transformation zones”, if the buildings are determined to be at risk or demanded to be reconstructed by its owners, they can get a renewal within the scope of this law. This is usually exercised through agreements between owners and contractors by signing a contract on flat-for-land basis. The sharing ratio between right owners and contractor varies by the project area, the housing condition of the parcel, the location, and the revenue to be derived from the project.

TSKB Real Estate Appraisal CompanyGeneral Manager

MAKBULE YÖNEL MAYA: “2016 WILL BE A YEAR IN WHICH FASTER DEVELOPMENT WILL OCCUR IN TERMS OF URBAN TRANSFORMATION.”

Firstly, an agreement is made with the flat owners and then a license is obtained for the project following the preparation of the architectural project and obtaining the legal permits. When the period which has passed since the Urban Transformation Law of 2012 took effect was evaluated, it is seen that the whole sector is experiencing the difficulties and troubles of the above-mentioned procedure. In fact, the urban transformation has not been implemented yet within the scope of the law in 2012. We’ve only been able to perform some implementations in the base of sections and parcels in the last 3 years. The areas of highest unearned income have been decisive in this implementations. The best example to this is Bağdat Street and its surroundings. The dynamism of urban transformation in Bağdat Street pleased the rental housings around the street as well. The residents of Bağdat Street, who are demanding to live in the immediate area, triggered an increase of around 35% in rents, for some by using rent allowances when they can not normally afford to do so. The residents who don’t want to move off from the neighborhood they have resided for years, thinking that they will have to move their own home after 1,5-2 years, have been seeking for flats for rent in the same location in order not to drift away from their familiar surroundings, as a result, the demand for rental housing is increasing in proportion to the renovated houses. The developments in exchange rates inevitably affected the real estate market over the past year. Although these developments, from time to time, have constituted an attractive atmosphere for exchanging foreign currency to purchase real estates, it has especially caused the foreign exchange transaction platforms, to have come to standstill. However, 2015 ended with a yearly growth of 11% in the total housing sales. Considering the legal processes which were delayed due to the effect of the elections of 2015 we can foresee that 2016 will be a year in which faster development will occur in terms of urban transformation.


How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? The global slowdown will surely continue to have an impact on the emerging economies. Thanks to the relatively large size of the Turkish real estate market and its own dynamics, such as the low level of leverage, so far adverse effects have been minimal. If such conditions in the global economy last longer, we may expect the local market to be affected. A steady increase in US interest rates, which we do not foresee, a slowdown in Europe and consistently low oil prices may affect the inflow of FDI to Turkey, suppressing the speed of development. This is not necessarily a bad thing for the Turkish real estate market.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? The most important development has been the introduction of real estate investment funds to the market. This will have many positive impacts. For one thing, it will commercialize the products, taking a big burden from the shoulders of the developers. Moreover, REIFs will give both the medium sized investors and outsiders to the real estate industry the opportunity to invest in large scale products, giving

them access to higher yields, and providing the developers/owners with a much larger customer base. In the long run, it will limit the strata sales especially in the office segment, increasing both value and marketability of the products. Depending on the success of the first batch of funds to be launched, the Turkish REIF sector may grow to a significant size in the coming years.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? We have to consider different segments. In shopping malls, I do think that Istanbul is saturated. In street shopping on the other hand, we have a long way to go. Instead of isolated projects at the heart of the city, we need to develop “walkable places”. This requires an important paradigm shift in development. In offices, the speed of construction is well above the absorption rate. In figures, the take up is roughly 250,000 m2 per year, but we have been developing 700,000. The total is approaching 5 million, which is fairly modest for a city of Istanbul’s size and economy. Housing is similar to office. In the alternative segments however, Istanbul is way underdeveloped.

What will be the new trends for the real estate market in the upcoming period? How does the market gets affected by the changes brought by the information age? We can examine the new trends in two categories; the alternative segments and the IT related developments. They will both dominate the market in the coming years. Senior facilities, student housing, data centers will be important segments. In the coming years quality of management or service will be at least as important as the design and construction quality of real estate. Advancement in IT will make sharing much easier, in fact this trend is already

Omurga Real Estate Portfolio ManagementChairman

MEHMET ERKTIN: “REIFs WILL GIVE BOTH THE MEDIUM SIZED INVESTORS AND OUTSIDERS TO THE REAL ESTATE INDUSTRY THE OPPORTUNITY TO INVEST IN LARGE SCALE PRODUCTS.”


snowballing. Although it might require a small cultural change in the Turkish market, I am sure most households and businesses will adopt the system to reduce their own costs.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? We have spent the previous year setting up our portfolio management company, Omurga Capital, and getting our licenses from the Capital Markets Board. 2016 will be the year to start investing, but we intend to complete most of our transactions in 2017 and 2018. In fact, we expect to have a buyers’ market in real estate in the upcoming couple of years. We hope to realize the profits from our investments 2018 onwards.

How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? Housing demand in Turkey is mostly sourced from population growth and request of citizens to move houses which are earthquake resistant, modern and suitable for new regulations. Therefore, this point of view has a significant effect on their decision to buy a house. The housing industry mostly depends on increase in GDP. Rest of the economic developments are related with investors which are using real estate as an investment tool. However, there is an obvious reality that cost increase of housing loan is the reason of rise in interest rates. In the meantime, by the reason of comparatively higher increase in housing price index than interest costs, Turkish housing industry has not been affected remarkably yet. Also demographic dynamics have still a positive and sustainable influence on the industry.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? Last year there was no notable positive or negative development that has effected the market. We haven’t seen any adverse effects on the market after two general elections held in 2015. If we need to mention about one of the issues, we have experienced an increasing countrywide dynamism in sales to foreign citizens. Approximately 19,000 units were sold in 2014 but this number has reached around 23,000 in 2015 which means 20% increase in a year.

Emlak Konut GYOGeneral Manager

MURAT KURUM: “BUSINESS OPPORTUNITIES HAVE RISEN AND NUMBER OF INDUSTRIAL ZONES HAVE INCREASED IN ANATOLIAN CITIES.”


Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? The city of Istanbul is as large as a country with a population of around 15 million. Housing stock in Istanbul is almost 4 million and there is an earthquake risk for half of them because of insufficient quality stock. Regeneration for them is an obligation. From this point of view, it would take time to meet the housing need of Istanbul. As long as GDP of Turkey increases, we won’t be experiencing any trouble on both supply and demand side. Especially, economical stability that we have for more than 10 years and rapid development of Anatolian cities in all aspects enhanced their attractiveness. The issue of migration to the large cities has changed its direction to the reverse side. Business opportunities have risen and number of industrial zones have increased in Anatolian cities. These have enhanced tangible welfare in more recent years. Many industries including real estate have taken its advantages. From this point of view, we, REIC, have started to generate our projects in an attractive central locations of Anatolian cities for carrying Emlak Konut brand name there. We are quite pleased with all the process and demand so far.

What will be the new trends for the real estate market in the upcoming period? How does the market gets affected by the changes brought by the information age? In many recent residential projects, we have observed that the concept of those projects evolved into “mixed-use type” particularly during the latest years. Residents can meet most of their daily needs in the borders of mixed-use projects without having any struggle in city traffic. And this provides a much comfort and time in social life. This concept has become a popular trend in large cities and we can foresee that it will continue in the long run. Tangible progress has been realized

in energy efficiency together with the improved materials and information technologies. The topic of sustainability always holds a great potential; so further steps will be taken. For instance, we can say that smart home & automation technology will become a much more common standard in the upcoming years.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? 2015 was a dynamic year with the sales of 10,453 units and TRY 6.32 billion total revenue which are %20 higher in revenue and %5 higher in units compared to the previous year. If we handle the results with a gross sales square meters which we started to publish from the last period; by the sale of 1,43 million m2 of total area, we have achieved a satisfying trend which is above %15 from the year of 2014. We have also reached a highest sales number ever to foreign citizens this year. And this year has let us to experience more and diversified foreign interest to our projects. We have sold 1,307 units, which equals to TRY 1,051,000,000 (VAT exclusive) in our total revenue, only to foreign citizens. This is a significant value which is nearly %20 of our total sales. Considering from the country perspective, not only Istanbul also Bursa, Antalya, Yalova, Trabzon, Sakarya were popular cities among foreign citizens, especially from the Gulf countries. A total space of 170,000 m2 sold to foreign citizens. This was a remarkable result.


How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? Nowadays communication is fast and unlimited, we live in an age where the international interaction is at its peak due to economic developments. Consequently, it should be considered that Turkey by itself is not the only source of the macroeconomic developments in the country. The international monetary policies, the political developments, the entirety of economic and political developments experienced in the Middle East affected Turkey, as well as the whole world. This is predictable. Therefore, if we think of it to be specific to Turkey, the past 5 years and next 4 years should be evaluated under different subjects. Turkey performed several elections, a local election, a presidential election and two referendums in the past five years, and the reaction to the political developments in the country reflected on the economic data of the past period negatively. The effect of the information that any new local or general election is not expected in at least four years, is positive. In the last decade, we think that the real estate production in Turkey was incapable as the comprehension distance disappeared for the real estate investment in the world, which is of interest to the real estate market in Turkey due to the abroad investors. Yearly 20,000-22,000 pieces of residences are sold to the foreign and every year it continues to grow with an increase of 10-15% in proportion to the previous year. Foreign investors consider the interest of the Middle Eastern people in Turkey due to the negative political developments experienced in the region

and the changes in the mutualism code. Besides this as a great advantage. In summary, when we consider the countries all around the world and their investment opportunities, we can see the fact that Turkey will always be far ahead of the competing countries in real estate, which is the most valid investment instrument, regardless of the macro economic developments.

What is the greatest development / event affected the sector in the last year? What are the affects of this case today and in future? There are three subjects that I cannot disconnect as the greatest events affecting the sector in the year 2015. Firstly, the fact that we had two general elections which got us wondering if its results become negative, affecting the interior dynamics of Turkey and consequently how it is observed from the outside. When we evaluate the general election results independently regardless of the political ideas, it is really surprising that the economy of Turkey is affected at a much lower level than what is expected from the outside, even though the results are complicated. Secondly, the political disorders in our neighbour Syria. The sector was affected by the uncontrolled immigration actions and that the developments experienced in Syria and closely followed by the whole world are felt as if they were experienced in the middle of Istanbul. Finally, the tension experienced between Russia and us caused hesitations particularly among the foreign investors.

In your opinion did the investments reach at the saturation point in the metropolitans such as Istanbul? How do you see/What do you thing about the potentials of the Anatolian cities? The first rule of the free market economy is that “the market determines the price”. This is the phrase taught in the economics courses and determined to be the definition of capitalism. Therefore, it shows that there is no satiety as the new construction projects are continued to be built in Istanbul and an increase

ProjebeyazInternational Chairman of the Board

MURAT UZUN: “ANY NEW LOCAL OR GENERAL ELECTION IS NOT EXPECTED IN AT LEAST FOUR YEARS, IS POSITIVE.”


around 10-15% in average is ensured every year yet the demand continues regardless. Istanbul sustains its charm with governmental investments such as 3rd bridge, the new airport and health cities, and it will continue sustaining. The fast global population increase and the developing travelling opportunities shall increase the charm of Istanbul in the following years, an important geographical location in the world. As Napoleon Bonaparte said, “If the World was only one country, Istanbul would be its capital city.”

What shall the new trends be in the next period? How will the technological age’s yields affect the sector? The combined projects that can ease our lives with more rationalist solutions in more minimal areas shall be the reason of preference as the new trend in the upcoming period. It shall direct the sector’s demands towards shopping malls, the concierge system, gym, pool, spa, as well as offices to be in our living areas including smart units equipped with technology, in the same building.

How do you evaluate your firm’s performance in last year? Did your targets for 2015 come true? What are your targets for the year 2016? As Projebeyaz, 2015 was a year of new advances and new investments as it was in the previous years. We continued growing with the projects consulted and sold by us in Turkey and around world. We introduced the project Helis More Residence & Office actualized in Istanbul by Helis Yapı, one of our group’s real estate investment companies. The preparations of our project in Bursa were made in the same way and its first stage was put up for sale. We opened offices in Germany and England and additionally our activity in the Middle East was increased. Briefly, we may tell that we reached our goals for 2015. There are more countries to be discovered, customers to access, tens of destinations to be introduced to the real estate service for the country in the year 2016 and we continue working on them.

What is the most important development for the sector in the last year? How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? Real estate continues to be a major investment vehicle in Turkey. Demand for housing is set to rise over the next few years under the combined pressures of population growth, urbanization, a reduction in the size of urban households, and migration. Meanwhile, urban renewal projects are revitalizing the sector. The use of mortgages, which started in 2006 with the passage of the Mortgage Home Financing Law, is rapidly increasing in Turkey. Public and private-sector projects in 2015 gave impetus to the sector. Tekfen has a strong and positive brand image countrywide. Tekfen is determined to move forward and deliver top quality work that we can be proud of in the future as it has done in the past. We believe that the successful performance of the HEP İstanbul project is based on Tekfen’s 60 year experience. HEP İstanbul housing project in Esenyurt, İstanbul was highly significant for Tekfen Real Estate Development in 2015. HEP İstanbul project was launched with the motto “The Home of My Life”. HEP İstanbul is going up in the most valuable location in Esenyurt, one of İstanbul’s most rapidly developing districts. Valued at TRY 600 million, the Project, designed by CM Design and Architecture, is Tekfen Real Estate Development’s biggest

Tekfen Real Estate DevelopmentGeneral Manager

ÖMER EGESEL: “WE BELIEVE THAT THE SUCCESSFUL PERFORMANCE OF THE HEP ISTANBUL PROJECT IS BASED ON TEKFEN’S 60 YEAR EXPERIENCE.”


project. HEP İstanbul will consist of 11 high-rise blocks, 14 rows of low-rise building and 1,424 apartments. While the real estate sector did well in 2015, approximately 60 percentage of 1,424 apartments was sold. From the beginning, the house prices in HEP İstanbul have been increasing nearly 30 per cent. HEP İstanbul targets the middle income customer. It is the first time that HEP İstanbul is projected the middle income customer by Tekfen Real Estate Development. It seeks to offer a living space that is well planned down to the smallest details and environmentally friendly. Like in Tekfen Real Estate Development’s previous projects, this one will possess the LEED Green Building Certificate. The construction of the project began in January 2015, with delivery to homeowners slated for April 2017. The İzmir Mixed-Use Project is another large investment project Tekfen Real Estate Development scheduled to start in 2016. The project is situated at the intersection of Bayraklı, Konak and Bornova in İzmir, one of Turkey’s most rapidly developing urban areas. The project will be one of the first examples of mixed use project in which shopping center, A+ offices, residences and home offices are all together combined in İzmir region. Designed by Emre Arolat Architects, the project will become a major landmark on the city skyline and an important meeting point for Izmir. In order to raise our growth target, Tekfen Real Estate Development plans to make a joint venture with Amstar Global Partners, real estate investment fund that acquires, develops and manages all major property types in the United States and in select international markets. Tekfen Real Estate Development, with ongoing and and new projects, aims to carry its yearly revenue to TRY 1 billion level.

How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? Turkish economy has strong dynamics that can withstand volatile times. The current geopolitical environment is bound to affect the market and the macro-economic balance, however, despite everything we have witnessed a healthy growth in the real estate industry. The anticipated interest rate hike by the Fed, the volatility in the commodities market as well as the falling oil prices have, and will continue to affect the Turkish market as well, however Turkey has been flexible and strong enough to deal with these issues in the past. The internal dynamics of the Turkish real estate market and the banking industry that supports it is so strong that despite everything, we expect the growth to continue.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? I do not believe that the big cities in Turkey, specifically Istanbul has reached a point of saturation as far as real estate investments are concerned. However, there are areas of Istanbul that may be considered saturated for some asset classes. The population growth, migration, as well as the generational cultural changes still continue to fuel growth in Istanbul. Having invested in Anatolian cities, I can say that I do not see as big a potential and value in Anatolian cities as in Istanbul. On the other hand, there are still favorable investment opportunities in Anatolian cities as well.

TahincioğluChairman

ÖZCAN TAHINCIOĞLU: “WE HAVE EXCEEDED OUR SALES TARGETS IN ALL ASSET CLASSES.”


What will be the new trends for the real estate market in the upcoming period? How does the market gets affected by the changes brought by the information age? The information age is affecting the real estate market in various ways. The new smart buildings are changing the way we live and work. As in any other industry, information technology coupled with big data is getting rid of the inefficiencies in the market and new trends are being formed by these changes even in a market which is defined as ‘bricks and mortar’.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? 2015 was a very good year for us. We have exceeded our sales targets in all asset classes. We are also quite hopeful about 2016. We are planning on launching three new project this year that we hope will generate in excess of USD 2.2 billion of new sales.

How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? Real estate industry in Turkey in general and especially in big cities like Istanbul, Ankara, Izmir, Antalya is currently experiencing high velocity construction activities conducted under particular approaches. Such ongoing high velocity of construction activities brought questions like “… who will live in these residences, who will work in these office towers; how many shopping centers more will be constructed; is the city not saturated with shopping malls yet?” A reasonable explanation is not possible under a simple approach considering residences as residences, offices as offices and shopping centers as shopping centers with their sole functions; because these have become investment tools beyond their functions, far beyond being our homes, or offices.

What is the most important recent development for the sector? What sort of impact do you expect this development will have today and in the future? Real estate investment trusts have entered among essential components of the finance world. Such institutions, shares of which are issued in the stock exchange market, give their services to not only local investors but to foreign investors at a great extent as well.

Pro^GeFounding Partner and Vice President

SELÇUK ALTEN: “SUCH DRAMATIC CHANGE WE ARE EXPERIENCING IN THE REAL ESTATE GAINS MEANING ONLYAFTER CONSIDERING THE NEW CIRCUMSTANCES PRODUCED BY THE NEW WORLD ORDER SHAPED BY GLOBALIZATION.”


Such dramatic change we are experiencing in the real estate gains meaning only after considering the new circumstances produced by the new world order shaped by globalization. In our days we are yet familiar to rapid money movements in the finance markets. It is an obvious fact that the total amount of money flowing through notably stock markets, banks and also the virtual world via secondary finance markets today is far beyond being normal.

What will be the new trends for the real estate market in the upcoming period? Every finance institution having depth is at the tendency of knowing the real value of the stocks presented and assuring their customers for keeping them away from speculative risks. It is inevitable for notable real estate investment trusts or large scale building contractors as well as the banking sector, to follow similar approach for buildings treated as a trade tool. Looking at today’s real estate investments, we are witnessing that project management services are not given the required importance. However, considering all of the above, signs of which we already can realize, construction methods of real estate investments in Turkey will rapidly get closer to the global examples and we have no doubt that project management services will be given the required importance.

How would you summarize the performance of the corporation you are in charge of? Did 2015 meet your expectations? What are your goals considering 2016? Pro^Ge, one of the oldest project management establishments in the sector having completed 15 years, has entered into a new structuring during last five years as conscious of the above mentioned course; for accommodating to such inevitable change. We have concentrated our services on two main focuses highly influential on these trade tools as construction cost as well as quality, constituting the value of the building.

In other words, while enhancing the sense of quality conditions that will increase the value of the building, we improved our “design management” and “construction management” abilities aiming to minimize the waste of resources and brought forward the contemporary norms comprising energy saving and operational convenience, together with quality increasing technological innovations. On the other hand, through focusing on “design management” activities, we put into practice cost decreasing approaches by eliminating factors which actually do not practically have any contribution to the value of the building, because we know that project management cannot be performed only relying on technical precision. Within this context, Pro^Ge carries on performing feasibility and cost modeling services in international projects as the Turkish member of RLB Euro Alliance, an international institution with their head office based in London.


How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? The course of economy, mortgage interest rates, stability and peace in the streets, they all are important for the real estate market. This will affect directly both domestic purchases, the recent foreign purchases and the interest of foreigners that recently turned towards the Turkish real estate market. I think that the fluctuation on the exchange and interest rates of the final quarter will decrease and this will have a positive affect on the purchase inclination in the sector.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? Even though it went in effect towards the end of 2014, The New Consumers Protection Law and the Prepaid Real Estate Sales regulations influenced the purchasing habits of the real estate target group in 2015. While I believe these regulations are accurate steps taken to ensure consumer investment safety, I also think that they have some aspects that are vulnerable to misuse. To give an example, the consumer can return the real estate that he/she purchased with a 2% penalty at the end of the work. This is an area open to misuse and can create ambivalence. In a possible nation-wide crisis, it may have an escalating effect on the crisis. Also in the regulation, there is an obligation to get the remaining construction insured. However, no insurance company grants insurance for remaining constructions

because international reassurers do not warrant that. The elimination of certain practices and deficiencies that create an environment of mistrust and have negative affects on sales will encourage investments in real estates. However, corporations that carry out their business without straying, that are honest, respectable and powerful will not be affected by these regulations; on the contrary they will benefit from them. As these regulations aim to solve problems that our clients never encounter and target issues about practices that are never seen in Inanlar, new regulations and practices will not make any significant difference to us.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? There is a big demand in terms of housing in İstanbul but the production doesn’t meet the demand. With the high migration rates added to the demands of the current population, we calculate the annual housing demand potential somewhere around 200,000 independent units. Let alone reaching the saturation point, Istanbul needs more than 3 million modern and livable residences. Most of the present houses are old and bound to collapse in an earthquake. First of all, I think the demands of the increasing population must be met.

What will be the new trends for the real estate market in the upcoming period? How does the market get affected by the changes brought by the information age?Our area of expertise as Inanlar and the never changing address of our projects for 51 years - the city of Istanbul - witness the change in real estate trends in direct proportion with the city’s development. While the mega projects in İstanbul that are rapidly being applied speed up the city’s expansion, urban renewal process creates a brand new İstanbul and brand new investment opportunities.

InanlarChairman of the Board

SERDAR INAN: “I THINK THAT THE FLUCTUATION ON THE EXCHANGE AND INTEREST RATES OF THE FINAL QUARTER WILL DECREASE.”


It is very important to understand how İstanbul is going to be in 5 years. On one hand, the world’s biggest airport with its 150 million-passenger capacity is being built in İstanbul. Large-scale projects such as the 3rd Airport of İstanbul and the 3rd Bosphorus Bridge that is approaching completion not only add value to the city but also make life easier. Regions that are near these projects such as Zekeriyaköy, are turning into a world wide center of attraction. We are following closely the city’s new life and investment trends, taking part in them before everyone else and bring them to investors who have trust in the name of Inanlar.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 meet your expectations? What are your goals considering 2016? Despite the negativities that took place in 2015, for Inanlar it was a year where we put our signature under significant achievements. By being listed as the 305th company in the Fortune’s “Top 500 Biggest Companies in Turkey” list and 5th among “the companies whose sales increased most” we are among the most successful corporations of 2014. And at the end of 2015, according to the evaluation report of December 2015 by one of the most prestigious credit rating institutions, JCR Eurasia Rating, we have increased our credit. These achievements being a source of motivation, they added speed to our speed, and strength to our strength. In the year 2016 that began with the motivation drawn from these valuable achievements, we will live up to the trust our brand receives and will continue with projects that reflect the quality of our experience of more than a half century. Also we will again be offering proper living spaces that will add quality and profit to life in İstanbul in the locations we identify through meticulous and long research.

How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? The recent political conflicts in Southeastern Turkey and the so-called Russia crisis will likely have a negative impact on the real estate industry. As an example, Turkey’s Mediterranean coast, which was beloved by Russian investors and tourists, is now struggling due to the Russians’ loss of interest. While China is considered to be the world’s second largest economy, in 2015 the Chinese economy achieved its lowest growth rate in the last 25 years. China’s low growth rate and the dramatic decrease in oil prices are signs of a global recession to be expected in 2016. It appears that local investors and developers will be driving the real estate industry in 2016, as foreign investments will tend to maintain a slower pace.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? We believe that progressing urban regeneration projects and the introduction of real estate investment funds were the most important developments in the market last year. Urban regeneration projects, undertaken by small and medium-sized developers, have created a positive synergy in the market. We expect this synergy to continue since Istanbul is under threat of a large-scale earthquake in the near future, and thousands of buildings are expected to undergo regeneration in the upcoming years. The positive effects of the regeneration projects on local investors may also draw

Hergüner Bilgen ÖzekeCorporate Partner specialized in Real Estate matters

SERKAN GÜL: “THERE IS STILL ROOM FOR INVESTMENT IN AFFORDABLE RESIDENTIAL PROJECTS.”


the interest of international investors, at least where projects of larger scale, covering hectares of land, are concerned. Besides, local authorities as well as the central government are expected to introduce incentives to accelerate the processes and realize a successful regeneration project. In another recent major development, the Capital Markets Board’s revisions to its regulations now allow real estate to be considered an investment instrument in Turkey, expected to attract more foreign investors to the market.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? Our experience in the real estate industry indicates that the saturation point has likely been reached for investments in shopping centers, offices and luxury residences. However, it must be noted that there is still room for investment in affordable residential projects. As an example, while investors are eager to building residences in Istanbul, such residences do not seem affordable to the average middle class citizen. Unlike big cities like Istanbul, Izmir and Ankara, Anatolian cities are very welcoming of any kind of investment.

What will be the new trends for the real estate market in the upcoming period? How does the market gets affected by the changes brought by the information age? The concept of mixed-use projects is highly popular in the Turkish real estate industry at the moment, and we are expecting it to be even more popular in the near future. The mixed-use project concept combines various types of stores, restaurants, coffee shops, a gym, a movie theatre etc. and residences, and forms a living space which aims to satisfy every need of its residents and guests. Next, the intelligent residence concept appears to catch the interest of the millennials. As the whole world is going digital, people in these generations are in search of residences that integrate the newest

technology. These generations are also very environmentally conscious, and seek out residences built in a “green concept”. The fact that Turkey has a younger population compared to other European countries becomes highly relevant in this regard. We believe that shopping centers that include more space for entertainment purposes and less retail space will be more popular in 2016. Shopping centers should be more than places to visit just for shopping in the information age - a person may just as easily go online on their mobile phone and order almost everything online that they could buy from a retail store.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? Although 2015 was not that a bright a year for the global economy, we have managed to maintain our clients and reach out targets. 2016 is expected to be a year in which investors will feel the stress of the expected global recession. In this regard, as Hergüner Bilgen Özeke Attorney Partnership, our goal is to continue to maintain professional relations with our clients as their trusted advisor, and to provide legal support of the highest quality.


How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? Following the long-lasting stability of Turkish economy, a variety of foreign investors from the GCC region entered the real-estate market of Turkey. Knowing that the real-estate industry is one of the triggering factor in the recent development of the economy, we will continue our investments accordingly. Right now, a large portion of investors from GCC countries are looking to divest completely from oil related investments, and/or divest from the region - and we understand there are some great real estate opportunities on the real estate market, which are heavily discounted because of the current market conditions. These investors are seeking specific regional opportunities. Historically, real estate has been the most attractive asset class to Arab investors - particularly real estate in Europe. In 2015, Middle Eastern investors spent USD 8.45 billion on real estate in the UK alone. This year, because of the massive divestment from the Middle East, we expect even more money to be taken out of the region and invested into Turkish and European real estate.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? The most important development for the sector last year was an exam undertaken by the foreign investors of Turkey. This exam was testing the power of investors in real estate market of Turkey. Political and economical instability was the

results of elections and terroristic attacks happened in 2015. There were so many unknowns and nobody wanted to take any risk by investing the products of Turkish real-estate market. Fortunately, all the problems sourcing from this instability are overcome and still the investors of Turkish real estate market are still here and believe in the Turkish economy. We are hoping that Turkey will continue its regional leadership and the number of real-estate investors from all around the world will increase year-by-year.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? Istanbul is a unique city that have great potential for real estate investors. Whatever you invest in Istanbul, no doubt that you will have profit at the end. As Turks said: Even stone, even soil is golden in Istanbul. But as we all observe, Istanbul reached its limits from population point of view. Serious infrastructure problems may occur in the future resulting from high population and traffic jam. Lack of recreational areas and city parks makes people depressed. So, investment opportunities should change its direction rather than capital cities as it happens in the developed countries. Every Anatolian region should have its leader city such as Bursa, Eskişehir, Adana, Trabzon, Diyarbakır, Gaziantep, etc.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals for 2016? State Corps Turkey has been established by the mid-2015 in Istanbul, Turkey. Thus, for 2015 we had no company goals to be achieved. But as for 2016, we already made our business plan and shaped the company goals. We are aiming to finish the development of 4 residential projects and begin the construction of them before the end of 2016. This way, we are trusting the potential of Turkish Economy which is the main reason of our presence in Turkish real-estate market.

State CorpsCountry Manager

SHAMSULLAH MOMAND: “NEW CAR-PARK TECHNOLOGIES WILL PLAY A MAJOR ROLE FOR THE FUTURE OF REAL ESTATE MARKET”


How do you expect the recent macro-economic developments in Turkey and the world will affect the real estate industry in Turkey? The international investors are currently cautious. They observe the Turkish market. As soon as the situation is stable, they will make new investments. Turkey is very important due to the geographical location and economic power. In the long term, the investment in Turkey is necessary. FDI will decrease significantly, except the industry sectors.

What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? The development of infrastructure (airport, metro, underground, highways, ports etc.) is immense. Furthermore, the restructuring of the health sector will go on for years. All these activities will not be suspended. Turkey will be more isolated from an economic point of view, but Turkish companies will use the chance to divers their activities outside Turkey.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities?The point of saturation of building activities even in Istanbul is not reached yet. There is still a high demand, especially in the transformation of existing structures to the state of the art – in residential, office, industry, cultural buildings and infrastructure as well. But on the other hand investment opportunities will be less than expected

for such a country, the transactions will be more local - local without foreign investments.

What will be the new trends for the real estate market in the upcoming period? How does the market gets affected by the changes brought by the information age?Smart city developments including digitalization and smart infrastructure will have a major impact. The public sector and as well as the governmental investments should use the opportunity to support the next level as much as they can. In the private sector we do not expect real changes in the next years, the basic demand is still too high, real innovation are not expected.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? We restarted our business development activities mid 2015. We are not satisfied with the political circumstances as well the currently weak investment climate. We can only achieve our targets in 2016 with more foreign investments in Turkey. We are optimistic for the local business and pessimistic for the global business in Turkey.

Drees & SommerDirector Turkey

SIBEL KARAOĞLAN: “SMART CITY DEVELOPMENTS INCLUDING DIGITALIZATION AND SMART INFRASTRUCTURE WILL HAVE A MAJOR IMPACT.”


How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals for 2016? First of all, I think that international realty fairs are very important for construction industry. MIPIM is one of the most impressive gatherings for international players such as leading contracting companies or investment funds of the global real estate industry. We consider MIPIM as a global stage where Turkish construction sector could make an appearance. The Turkish economy and the construction sector of the country are very strong. With new projects, we think that Turkish contractors should represent Turkey in the international arena. This year, very successful projects will participate in the fair from Turkey. Our contracting companies succeed in so many projects. Advantages of Turkey attract many investors from European and Gulf Countries recently. In this sense, companies which contributes to the presentation of investment advantages in Turkey will have a crucial role in the fair. Still holding a great potential for investments, Turkey has a need of ~450,000 houses each year. Existing housing stock can not be sufficient to meet the demand. Thus, construction market in Turkey should keep working in the quickest way. In line with the economic growth, the Turkish construction market has grown steadily in the last decade. Mega projects, such as major urban transformation practices, the Canal Istanbul, the 3rd Orbital Road or the 3rd Airport will determine our future. I believe, Turkey will continue to be a safe haven for global investors in the upcoming years.

Artaş InşaatChairman of the Board

SÜLEYMAN ÇETINSAYA: “STILL HOLDING A GREAT POTENTIAL FOR INVESTMENTS, TURKEY HAS A NEED OF ~450,000 HOUSES EACH YEAR.”


What is the most important development for the sector in the last year? What sort of impact do you expect this development will have today and in the future? The most important development for the sector in Turkey last year was urban transformation projects which have dominated the local real estate sector particularly the metropolitan areas such as Istanbul, Ankara, and Izmir. As the real estate sectors’ trend setter in Turkey, Istanbul had again a head start on both the urban renewal projects and infrastructure and construction projects such as Marmaray, Istanbul’s third airport project and the third Bosphorus Bridge project. As a result of such developments, it seems that urban renewal projects will not stay limited to metropolitan areas and will be put into practice throughout Turkey.

Do you think that the investments have reached the point of saturation in big cities such as Istanbul? How do you assess the potential of Anatolian cities? At this point, it is not possible for investments in big cities such as Istanbul to reach at a point of saturation due to the ongoing migration, growth in population and rapid urbanization as these factors play a huge role in the volume of urban renewal projects. Additionally, aforementioned infrastructure projects positively affect expansion of residential and commercial zonings on relevant regions where the project is located. Therefore, new playgrounds rise for new construction projects. On the other hand, young working population is also a strong factor for continuous consumption. There is still a huge potential especially in the urban renewal, mass housing and shopping

center investments. Considering the Anatolian cities, specifically the Aegean and Mediterranean regions, the potential for both the local and foreign investors in relation to mass housing projects and shopping center projects are massive as there are still untouched areas that are open to improvement.

What will be the new trends for the real estate market in the upcoming period? How does the market gets affected by the changes brought by the information age? Real Estate Investment Funds (“REIFs”) seem to be the new trend for the real estate market as they are worldwide popular and valued as strong investment instruments at the time being. From July 2014 the legislation permits REIFs to be founded in Turkey. From then on Real Estate Portfolio Management Companies started to be established in Turkey to manage REIFs. Via REIFs, qualified investors can specifically make real estate investments.

How would you summarize the yearly performance of the firm/corporation you are in charge of? Did 2015 met your expectations? What are your goals considering 2016? Real estate market experienced a successful year in Turkey in 2015 and 2016 will be a productive year as well in terms of local and international real estate investments. As Moral Law Firm with a dynamic and hands on team we are ready to provide legal services for valuable real estate investment projects like we did in 2015. Moral advised two major shopping center projects located in Izmir with 56,000 m2 GLA and Iskenderun with 30,000 m2 GLA while a hotel project in Karaköy, Istanbul. Moral has been active on project finance cases of some leading real estate development projects and urban transformation projects on significant regions of Istanbul such as Kağıthane, Beykoz, Göztepe, Eyüp and also Izmir. In 2016, we are expecting a higher intensity of real estate projects and we are planning to strengthen our market presence hand in hand with client investors.

MoralManaging Partner, LL.M.

VEFA REŞAT MORAL: “REAL ESTATE INVESTMENT FUNDS SEEM TO BE THE NEW TREND FOR THE REAL ESTATE MARKET.”

FEATUREDPROJECTS>>>

64 FEATURED PROJECTS INVESTOR’S GUIDE TURKEY 2016

Developer: Inanlar Construction Inc.Investor: Inanlar Construction Inc.Architect: Inanlar Construction Inc.Project Manager: Inanlar Construction Inc.Type: Mixed-use (residential & commercial)Location: Halkalı, IstanbulLand Size: 12,600 m2

Land Use: 7,700 m2

Residential & Office Space: 15,000 m2

Commercial Units: 8,000 m2

Hotel Rooms: N/AMax Floors: TBATotal Cost: USD 20 millionDate of Start: July 2016Date of Completion: July 2017Website: terracesu.com

TERRACE SUTerrace Su will be built on 7,663 sqm landplot, situated in a unique location at Halkalı main street, 5 minutes to Atatürk Airport & D-100, in the midway of TEM highway connection. The project is at design stage for now, and it will consist of 185 residential, 1 hypermarket and 5 commercial units with 2 market storeys and 2 basements.The construction area will be 32,000 sqm and total sales area will be 24,000 sqm. Estimated project completion is 18 months.

INVESTOR’S GUIDE TURKEY 2016 FEATURED PROJECTS 65

Developer: Inanlar Construction Inc.Investor: Inanlar Construction Inc.Architect: Inanlar Construction Inc.Project Manager: Inanlar Construction Inc.Type: Mixed-use (residential & commercial)Location: Beylikdüzü, IstanbulLand Size: 15,000 m2

Land Use: 10,000 m2

Residential & Office Space: 21,000 m2

Commercial Units: 9,000 m2

Max Floors: 37Total Cost: USD 25 millionDate Started: Dec 2015Date of Completion: December 2017Website: terracelotus.com

TERRACE LOTUSTerrace Lotus is located in Beylikduzu region, directly on D-100 (E-5) highway at Haramidere Intersection. (connection between D-100 and TEM highways). Torium shopping mall, 3rd largest mall in Istanbul, is right next to TerraceLotus, and there is a demand for quality structures in all around the region. Actually, the zone is extensively condensed with residential and industrial properties. Torium Shopping Mall, Carrefour AVM, Marmara Park AVM, Haramidere Industrial zone, Birlik Industrial Zone, Koctas DIY, Hilton Double Tree Hotel and Tuyap Fair Center are all nearby.

Consisting of 195 single spaces, Terrace Lotus is a high rise building located on E-5, Beylikdüzü with approximately 57.465 sqm construction area. Excavation work still continues and deliveries are planned to start in 2 years in our project. The license is obtained in 2015. Consisting of 44 stores, 2 offices and 149 residential units, our project is designed to be the most important icon building of the district and of the the region with its prestigious concept.


HELIS MORE

With a unique landscape and awe-inspiring design, Helis More offers you the living standards its region. The high-return investment provides you a complete office space to focus on your business as well as a pleasant living space with 5-star hotel comfort. The project also includes commercial units for shopping, a 2,500-m2 recreational facility, a 15,000 m2 parking area, and storage spaces allocated to each residence and office. Additionally, for a healthy and peaceful life in the city, enjoy the great view of Prince’ Islands of Marmara Sea and fresh air of Aydos Forest, run on a tartan track, or swim in the indoor or outdoor pools.

Developer: Proje Beyaz International Real EstateInvestor: Helis YapıArchitect: Efekta ArchitectProject Manager: Cemal KurtoğluInterior Architecture: Atelier Levent PensoType: Residence & OfficeLocation: Kartal, IstanbulLand Size: 7, 000 m2

Land Use: 4,500 m2

Residential Units: 231Office Units: 52Total Cost: 49,000,000 USDDate Started: June 2015Date of Completion: December 2017Website: www.helismore.com


NIDAKULE ATAŞEHIR WEST

Nidakule Ataşehir West is an A+ office project, situated at the very heart of the emerging business center and alongside the Istanbul Financial Center. Balcony and terraces found on each floor, a ceiling height above 4 meters, operable windows, daylight penetration and carefully designed amenity spaces provide a spacious working environment. The project offers a pleasant green area with its terrace gardens and convenient inner city transportation options with its immediacy to the subway and both of the bridges crossing the Bosphorus.

Location: Ataşehir, IstanbulProject architect: Aukett Swanke GroupUsage: OfficeConstruction area: 45,000 m2

Leasable office area: 25,000 m2

Leasable social activities area: 5,000 m2

Completion date: 2017, Q1Project Web Site: www.tahincioglu.com


NIDAKULE FINANCIAL CENTER

Located within the Istanbul Financial Center, the project is capable of becoming an epicenter of the business world. Financial regulatory authorities, all state banks and certain private banks are expected to relocate their headquarters to the Istanbul Financial Center by 2019.

Location: Ataşehir, IstanbulProject architect: Kreatif ArchitectsUsage: Office + commercial activitiesConstruction area: 85,000 m2

Leasable area: 45,000 m2

Completion date: 2017, Q4Project Web Site: www.tahincioglu.com

WHO’S WHO>>>

72 WHO’S WHO INVESTOR’S GUIDE TURKEY 2016

ÆRIUM TURKEY Founded in 2003, ÆRIUM is an independent pan-European real estate investment manager, headquartered in Luxembourg, with offices in London, Paris, Geneva, Dusseldorf, Stockholm and Istanbul. With over €6.4 billion under management throughout Europe and Turkey, ÆRIUM ranks amongst the leading independent platforms in Europe. ÆRIUM has launched 16 closed-ended funds since 2003, and also manages separate account mandates for long-term institutional investors. Acquisitions to date total over 660 assets across Europe and Turkey, with a typical asset size of between €20 million and €100 million. In 2005, Ærium became one of the first foreign investors to purchase Turkish commercial properties. In 2015, Ærium Turkey’s asset value represents over €720 million in property, with an additional €2.7 billion under development. During the last decade, Ærium has achieved an exceptional track record and has found unrivalled success in managing and developing its portfolio of properties through proactive asset management strategies. Ærium has proven it is not only a market pioneer, but also a leader and expert in Turkey’s shopping center sector.

ÆRIUM Turkey A: Terrace Fulya Center 2 D: 40 Hakkı Yeten Caddesi Teşvikiye 34365 Şişli Istanbul, Turkey P: +90 212 215 50 95

ÆRIUM LuxembourgA: 6A, route de Treves L – 2633 Senningerberg, LuxembourgP: +352 26 94 81 1 ÆRIUM United Kingdom A: 49 Grosvenor Street W1K 3HP London, UK P: +44 (0) 207 838 79 00

www.aerium.com

Anthony KhoiPresident & CEO

Yağmur Yaşar CFO


BAŞPINAR & PARTNERS

Ali CeylanPartner

Gökmen BaşpınarPartner

Kaan GökPartner

At Başpınar & Partners, we believe that the quality of our work enables us to meet the needs of our clients efficiently and with the success that they are accustomed to. We offer multi-lingual services for vast array of clients given that each one of our attorneys are fluent in at least one foreign language. Our mission is to create value for our clients. We are proud of the recognition we have received from our clients for our commitment to service, and we value their satisfaction as the best measure of our success. Our firm’s culture is characterized by teamwork, mutual respect and a commitment to excellence in everything we do. Our legal experts do not solve problems merely by replicating historical approaches, but also test alternative approaches and invent unique solutions. Başpınar & Partners has remarkable experience in real estate, litigation, corporate law, M&A, international arbitration, energy, privatization and intellectual property.Most of Başpınar & Partners’ clients are international corporations investing in Turkey. Başpınar & Partners has clients from the US, Europe, Central Asia and the Gulf countries. Başpınar & Partners currently advises one of the largest real estate project developments in the west coast of Turkey, with a multibillion-dollar value. The Firm is also advising various urban transformation projects in important locations of Istanbul such as Etiler, Bagdat Street, etc.

Başpınar & Partners is among recommended firms by IFLR1000 2014, 2015 and 2016.

Başpınar & Partners is a ranked firm by Chambers & Partners under the real estate section in 2015.

Başpınar & Partners is among recommended firms by Legal 500 under the real estate section 2014 and 2015.

The firm is a member of the British Chamber of Commerce, the German Chamber of Commerce, the Swedish Chamber of Commerce, the Dutch Business Association, the Kuwait Business Association, the Ethics and Reputation Society.

Başpınar & Partners contributed the Turkey chapter of ICLG (International Comparative Legal Guide) to Real Estate 2015 published by Global Legal Group

Başpınar & Partners contributed the Commercial Real Estate in Turkey: Overview chapter of Practical Law, Thomson Reuters.

Başpınar & Partners is one of the sponsors of GRI (Global Real Estate Institute) 2015 Turkey event and our Partners Mr. Gökmen Başpınar and Mr. Ali Ceylan will lead a workshop on Doing Business in Turkey.

İstiklal Cad. No:163 Mısır Apartmanı Kat 6 No:23-24 Beyoğlu 34433 Istanbul, Turkey

P: +90 212 465 66 99 F: +90 212 465 36 99

www.baspinar.av.tr

INVESTOR’S GUIDE TURKEY 2016 WHO’S WHO 75

URBAN TRANSFORMATION IN TURKEY The Law on the Transformation of Areas under the Risk of Natural Disaster, No.6306 (the “Law”) has been accepted on 16 May 2012 and has come into force on 31 May 2012 by the announcement in the Official Gazette No. 28309. Following the enforcement of the Law, the Regulation concerning the application of the Law (the “Regulation”) has come into force on 15 December 2012. “Risky Buildings” are defined as the buildings economical life of which has expired, within or outside of a risky area, whose risk of demolition or heavy damage is determined by scientific and technical proof. The issue that has the utmost importance is the determination of risky buildings. The Law shows the procedure to determine the risky buildings. The request for determination of risky buildings may be made by an application of one or more apartment owners to the Directorate of the Ministry of Environment and Urbanization (the “Directorate”) pursuant to the Regulation or may be requested directly from the municipalities as well. In practice, the determination is conducted by a licensed company in accordance with related procedures and principles, if the request has been made by an owner. Following the request, the licensed company takes samples from each floor of the building for the examination.

THE PROCESS CHART The report of the licensed company must be presented to the related Directorate within 10 days following the determination pursuant to Article No.7 of the Regulation. The report does not include any comment of the licensed company but determines the technical status of the building. The Directorate is the main responsible authority to decide

whether a building is risky. If the Directorate determines that the building is risky, then it notifies related municipality and directorate of land registry. After the notice of the Directorate, the information about the building shall be registered to the land registry records of the building. Following the registration, a notice is sent to the owners. The owners can object to the decision of the Directorate within 15 days following the service. A committee decides whether the objection is appropriate. If the objection is accepted, in this case the Directorate notifies municipality and directorate of land registry accordingly. If the objections are dismissed, the owners are given minimum 60 days to evacuate the risky building. If the owners fail to comply, they are given additional 30 days for evacuation. In case of failure to comply with the demolition requirements, the building shall be demolished by related municipality and district governorship. The owners are responsible to cover all demolition expenses. If the demolition is made by related

administrations, the Directorate registers a mortgage on the shares of the owners to secure the expenditure. The Law and the Regulation encourage owners on making shared decision to determine how to assess the land after demolition. In accordance with article 6 of the Law, the 2/3 majority is sufficient to take decisions. If any owner fails to comply with the decision, its shares shall be sold firstly to other owners. If the shares cannot be sold, the Treasury shall purchase the shares and register per pro.

ADVANTAGES & DISADVANTAGES FOR FOREIGN INVESTORS The advantages of the Urban Transformation Projects in Turkey are;

Tax exemptions: especially on the VAT application and also notary charges and stamp duty (which is almost 1% of the agreement value), and

Zoning incentives (depending on the location of the project): Since the Turkish Government is supporting Urban Transformation Projects, Municipalities can grant zoning incentives to promote the contractors.

The disadvantages of the Urban Transformation Projects are;

Communication with the landlords: since there are numerous landlords and each landlord has different demands, its is very hard to and it takes to much effort and time to reach a mutual agreement with all the landlords,

Litigation processes: in case of a law suit against any step of the Urban Transformation process, the length of litigation processes (due to the workload of Turkish Courts) might be too long.


CEFICLEADER IN TURKEY WITH OVER 22 YEARS OF EXPERIENCE AND SUCCESS CEFIC consulting company is operating in Europe since 1986 and in Turkey since 1994. The company is active in investment, development, design, leasing, property and facility management, as well as sales, marketing & promotion of shopping centers and commercial properties. CEFIC is providing service with an international know-how and tailored solutions to strongly support investors, developers and tenants for the most efficient results in growth and added value. With its team of 85 professionals, CEFIC manages almost 500,000 sqm GBA of shopping centers and commercial properties in Turkey. Its deep market knowledge and experience have established CEFIC as the leading expert in its field in Turkey. CEFIC is highly recognized by the industry with one of the best track records for accomplished achievement during the past 22 years in the Turkish market. CEFIC continues to strive for excellence and performance in the art of shopping center leasing and management.

CEFICIhlamur Yıldız Cad. No:8 Toprak Center A Blok 4.Kat Beşiktaş / İstanbul / TURKEY

P: +90 212 327 11 40

www.ceficturkey.com [email protected]

Yağmur Yaşar General Manager

Thierry Antonetti COO


DE-NAR GROUP DE-NAR GROUP has three companies at different branch of real estate sectors,

DE-NAR Real Estate Development & Investment Company DE-NAR Architectural & Design Company DE-NAR Construction Company

Our group of companies has an extensive capability and experience in Private Education Real Estate Development to serve our clients in the best way. De-Nar is dedicated to provide complementary services including real estate development, architectural design and construction. DE-NAR Real Estate Development Company works on niche projects such as private schools, K12s, universities and dormitories, etc. Mr. Emin Günal, the founder of DE-NAR Group, has an extensive knowledge and experience in real estate market. Previously, he was Head of Board and General Manager of Doğa Real Estate Dev & Investment Company that supported school management, specializing in all the processes which included finding investors, analyzing areas and lands, construction management according to all requirements given by Ministry of Education and other authorities. During this period, he personally managed the development of numerous schools for Doğa College Group. Now, in his own company, he and his team share all this knowledge and experience with various school chains, such as Mektebim, Bilfen, Okyanus, Yönder, VEGA, Uğur, ERA, Kavram, etc. Our firm is dedicated to providing comprehensive service and achieving optimum results through efficiency and open communication. Time and budget considerations are incorporated into our design and planning process to producing creative and cost-effective solutions. Please visit our web page denargroup.com for further information or call our office.

Kavacık Mahallesi Ekinciler Caddesi Ertürk Sokak, No:5 Beykoz, Istanbul, Turkey

P: +90 216 465 75 88

[email protected]

Emin GünalCEO

C

M

Y

CM

MY

CY

CMY

K

Dergi lan Baskı.pdf 1 2/18/16 1:12 PM


Sascha HempelGeneral Manager Turkey

Sibel KaraoğlanDirector Turkey

Inönü cad. Saadet Apt. 29/3 34427 Gümüssuyu / Istanbul / Turkey

P: +90 212 292 84 04P: +49 69 758077 8764F: +90 212 292 84 10Mobile: +90 532 627 73 39

[email protected]

DREES & SOMMERYOUR INNOVATIVE PARTNER FOR CONSULTING, PLANNING, CONSTRUCTION AND OPERATION For more than 45 years, Drees & Sommer has supported public and private sector owners and investors in all aspects of real estate. Managed by partners and headquartered in Stuttgart, the company has 38 offices worldwide and sets the standard in the areas of development consulting, infrastructure consulting, project management, real estate consulting and engineering. The focus is always on profitability, whereby we promote sustainable building to the greatest possible degree. We call this approach “the blue way”. The construction and real estate experts always have the goal of producing measurable added value for the client. This could mean, for example, streamlining the implementation of a construction project, making the operation of a property more economical, or cutting energy costs through innovative concepts. Currently, the company with its approximately 2,000 employees is acting as an independent project manager for more than 920 construction and real estate projects. The company started operations in Turkey in 2006 with a two-pronged approach. On the one hand, Drees & Sommer supported German and international customers entering the Turkish market. After only a short time, the team had established a number of excellent reference projects following the realization of shopping centers. On the other hand, Drees & Sommer supported Turkish cooperation partners with major local projects, particularly in the public sector. These included hospital projects, A-grade office buildings and hotels, as well as infrastructure projects. In the meantime, banks and financial services are also benefiting from the expertise of the German-Turkish team. A new focus is supporting Turkish companies with their international activities.

Ready to step up the quality of your construction projects?

– Development Consulting– Project Management– Engineering– Real Estate Consulting

Our international teams of engineers and experts can support you in taking that next step up in building design and construction in Turkey – from project setup, management and engineering to on-site quality assurance and opera-tions consulting.

Sibel Karaoglan +90 532 6277339, [email protected]

AZ_Investors_Guide_Turkei.indd 1 29.02.16 16:24


Aziz TorunChairman

Cumhuriyet Caddesi Pegasus Evi No: 48 Zemin Kat C Harbiye, Istanbul / Turkey

P: +90 212 282 53 65

[email protected]

GYODER(THE ASSOCIATION OF REAL ESTATE AND REAL ESTATE INVESTMENT COMPANIES)

GYODER, was established in 1999 for the purpose of encouraging the development of the real estate market in Turkey. As “The Real Estate Platform of Turkey” that collects all sub-sectors under the same roof, GYODER added “Real Estate” definition to its brand name in April 2013 and became “The Association of Real Estate and Real Estate Investment Companies”. Today, GYODER has nearly 250 corporate members ranging from project developers, consulting companies, REICs to appraisers, constructing companies. GYODER works to foster real estate standards and generating cooperation between all local authorities, relevant state bodies, private institutions, academics and NGOs, in shaping quality environments and exchange of information among them. As a common voice of the real estate industry, it contributes to the improvement of the legislation regulating the real estate sector. Aiming to make real estate more institutional by creating reliable data and knowhow, GYODER releases quarterly and annually reports on Turkish real estate market and monthly new home price indices. Turkish Real Estate Summit, organized annually by GYODER since 2000, have become the market’s traditional meeting and idea-sharing event with its international participants. Since 2009, GYODER has been organizing Turkey’s primary regional real estate and investment fair. GYODER also organizes “Developing Cities Summit” in order to present investment opportunities in developing cities in Turkey to sector representatives and national and international real estate investors.

C

M

Y

CM

MY

CY

CMY

K

GYO_Save The Date Ilan SON Conv.pdf 1 26/02/16 17:15


HERGÜNER BİLGEN ÖZEKE ATTORNEY PARTNERSHIP

Nazım Olcay KurtManaging Associate

H. Tolga DanışmanPartner

Serkan GülPartner

Hergüner Bilgen Özeke is Turkey’s premier independent business law firm. Hergüner’s international reach, wealth of practical experience, and over 30 years of developing close personal relationships with top industry leaders, allow us to serve as a one-stop shop for our clients, whether they are multinational corporations, international financial institutions, government agencies, or private individuals. Speaking over five languages and licensed in several jurisdictions, our 86-member legal team, 13 of whom are partners, are as at home in international law as they are in Turkish. For a truly independent Turkish law firm, our size allows us to tailor our team to meet the needs of the client, no matter how large or small, serving as a trusted advisor through every phase of a transaction.

OUR REAL ESTATE EXPERTS Serkan Gül, Tolga Danışman, and Nazım Kurt head up the Hergüner real estate team, working closely with the Corporate/M&A, Dispute Resolution, and Projects and Finance practice areas to apply their unique expertise to situations where others might miss the very serious real estate issues present, often in cases that could appear on the surface to be boilerplate corporate matters. They would be happy to discuss market developments in person, and they will be attending the MIPIM event, so please feel free to contact them directly anytime during or after the fair. “Sources offer effusive praise for market-leading lawyer Serkan Gül: “He is one of the best real estate lawyers in Turkey. He has extensive expertise, and the ability to create innovative solutions for complex problems, as well as impressive negotiation skills.” He recently assisted Metro Properties Gayrimenkul with various legal aspects of a multi-purpose development….” - Chambers & Partners “Hergüner Bilgen Özeke has been active in private equity real estate, advising BlackRock on the financing of its acquisition of a major healthcare development in Istanbul, and its pedigree is also demonstrated by work for clients such as Tesco and Metro Properties. Team head Serkan Gül is ‘motivated, hardworking and inspires confidence’.” - Legal 500

OUR REAL ESTATE PRACTICE INCLUDES:

Büyükdere Caddesi 199, Levent 34394 İstanbul, Turkey

P: +90 212 310 1800

www.herguner.av.trGeneral: [email protected] Newsletter: [email protected]

Serkan Gül P: +90 (555) 685 18 28 [email protected]

Tolga DanışmanP: +90 (555) 685 18 49 [email protected]

Nazım KurtP: +90 (555) 685 18 [email protected]

Commercial Leases Real Estate Investment Trusts (REIT) Real Estate Investment Funds Structuring Restructuring Building Permits Retail Centers Sale and Lease-Back Residential Projects Inheritance Matters

Airports and Ports Construction Licenses Energy Projects Mining/Extractive Ind. Zoning Legislation Highways, Bridges, and Tunnels Investment Funds Pipelines Urban Regeneration Projects Tourism Facilities


REGULATIONS IN THE TURKISH REAL ESTATE MARKET ARE PROGRESSIVELY HAVING A FAVORABLE EFFECT ON ALL MARKET PLAYERSTURKEY WELCOMES REIT LIKE REAL ESTATE FUNDS We believe that the introduction of real estate investment funds (the “Funds”) was the one of the most important developments in the real estate market last year. The Funds were introduced into Turkish law at the beginning of 2014, with a communique issued by the Capital Markets Board. Even though there was legal background, the Funds were not established for a long period of time due to several requests by market players. As a result of the Capital Markets Board’s revisions to its regulations, to date several funds have been established ready to invest in real estate. It is now expected that this new investment instrument will attract more foreign investors to the market.

A MORE REGULATED RETAIL SECTOR TO ATTRACT FOREIGN INVESTORS Regulation on Shopping Centers (“Regulation”) also entered into force in February 2016. The Retail Trade Law was the first act of law regulating the retail sector and particularly the shopping center business. Before the passage of secondary legislation however, it was unclear how the rules set forth in the Retail Trade Law would be applied. The Regulation stipulates in detail the rules and procedures governing, among others, the establishment, activities and inspection of shopping centers.The most important change brought by the Regulation is that the metropolitan municipalities became authorized to issue, amend, and renew construction permits, building utilization permits, and workplace

opening and operating licenses for shopping centers situated within the boundaries of metropolitan municipalities. The Regulation also regulates the use of common areas, distribution of common expenses, and the allocation of certain areas for specific professions. As the legislation related to shopping centers is now more regulated, and there are specific sanctions for violation of the rules set forth by the Regulation so diligent management and low property risk should comfort foreign investors looking to invest in shopping centers.

ACTION PLAN OF THE GOVERNMENT FOR THE YEAR 2016 IS PROMISING FOR REAL ESTATE The action plan of the government for the year 2016 was announced at the end of 2015. It is understood from the action plan that the government intends to make many new regulations with regards to the real estate sector. The most important ones are as follows;

The government will create new real estate related financial instruments. For this purpose, the legal basis of real estate certificates will be formed as a derivative. This derivative will provide a security for the landowners as these certificates will be traded on the stock exchange and the landowners will have opportunity to cash in these certificates at any time. By providing this kind of security to the landowners, it is aimed to ease the urban regeneration over the lands announced as “risky areas” which generally consists of hectors of land to develop in one move.

The bureaucracy in the investment process shall be reduced. The government shall make necessary regulations in order to prevent administrative and technical obstacles before the investment process. It is stated in the action plan that there are some obstacles with regards to procurement and allocation of lands for real estate development projects which will create opportunities to find land particularly in attractive cities like Istanbul.


INANLAR

Serdar InanChairman of the Board

Inanlar Coanstruction was founded in 1965 in Istanbul. Throughout our experience of more than half a century, “design for human” has been our indispensable principle. We have been a pioneering name in property development and construction, marking numerous firsts with over 220 projects in Istanbul, and offering highest quality living spaces for our worldwide investors and clients. With professional and expert approach to project development, we have achieved aesthetic designs and superior quality in our projects reaching high investment values, and to fulfill our commitment; we deliver smart and exclusive residential properties that exceed clients’ expectations. We oversee all aspects of property development and construction including; developing only the most suitable sites, formulating budgets, analyzing project feasibilities, permanent financing, marketing for-sale and/or rental units and managing property operation after sales. Inanlar stands out as a company for buyers who seek uniqueness, confidence and prestige. We are highly focused on delivering qualified residential properties in a timely manner with utmost perfection and high returns. We continue to develop exclusive, functional and sustainable projects at strategic locations through innovation and planning, and proceed to reinforce our position in project development by launching new and exceptional projects in Istanbul.

Teşvikiye Mahallesi Hakkı Yeten Caddesi No:11Terrace Fulya Center 1 Blok M4 Kat 34365 Şişli Istanbul, Turkey

P: +90 444 2 002 +90 212 215 54 54F: +90 212 215 54 56

www.inanlar.com


INSAY YAPI

İhsan Çulhalık President of the Executive Board

Vekalet KabaGeneral Manager

The foundation of our group has been set with the start of Ihsan Boya in 1979, which supplied paint, varnish, thinner, and polyester materials on a wholesale basis predominantly to the furniture sector. In 1994, with our flagship company Kolsuzlar Kimya, the group invested on providing import and export, storage and logistics services for more than 50 chemical substances which are considered to be the main inputs of many industrial plants. With its liquid and packaged chemicals storage facilities which include 41 tanks with 9,000 m3 capacity and an indoor area of 4,200 m2 on a 43,000 m2 of land, and with its import and export, storage, logistics services our company has earned its place among the leading companies in its market. In 1997, our manufacturer company Ihsan Kimya was established and industrial and synthetic thinners started to be manufactured. In 2011, in line with the decisions on the policy to use our current experience and capital in alternative sectors, Insay Yapı was established to start to operate in the real estate investment, construction and contracting industries. Our company started with the construction of projects for warehouses, factories, office buildings and houses on the company’s own lands and then the company has aimed to expand its operations and constructed premium houses and offices by buying more land or making special deals with land owners.

Çayır Caddesi No:7 Kat:9 Üçgen Plaza 34752 Içerenköy, Ataşehir / Istanbul / Turkey

P: +90 216 411 12 13F: +90 216 411 55 96

[email protected]

K.Serdar Yılmaz Vice General Manager


Jyldyza Sydykova Business Development Manager, Turkey

Ryan McIvor Country Director, Turkey

MACE GROUP Mace is an international consultancy and construction company working across the entire property and infrastructure life cycle and has been operating in Turkey since 2010. Since its foundation in 1990, Mace has believed that every space, every structure and every city is a chance to deliver in a better way for clients and the communities in which we work. We currently operate across 70 countries, and employ over 4,657 people with a current turnover in excess of GBP 1.49 billion. Since our establishment in Turkey we have delivered projects for a range of local and international clients in the market. We employ a highly experienced team to bring benefit to our clients’ projects at the key stages of design and construction. We employ locally and bring global expertise through the wider Mace group.

Our services include: Programme management Project management Construction management Cost, procurement and contract consultancy Due diligence Fit out

Whether commissioned to provide a specific discipline or offering our unique integrated service, we believe it is our relentless passion for finding a better way that helps us to deliver the best projects safely and efficiently, while delivering best value for our clients.

Maçka Caddesi Tuncer Building.No:29 D.13 Maçka, Istanbul, Turkey

P: +90 212 236 16 46

[email protected]@macegroup.com

www.macegroup.com

Top L to R: Mandarin Oriental, Bodrum, Turkey. Hilton Bomonti Hotel and Conference Centre, Istanubul, Turkey. Bottom L to R: Al Jazerra, London, UK. The Shard, London, UK. Abu Dhabi National Exhibitions Company, Abu Dhabi, UAE.

Imagine better

Our experience in Turkey ranges from a combined project management and main contractor role in the commercial office sector to the due diligence, planning and project management of a number of 5 star hotel and leisure developments.

Whether commissioned to provide a specific discipline or our unique integrated service offer, Mace delivers projects safely and efficiently, while defining industry best practice.

For further information please contact:

Jyldyza Sydykova Business Development Manager

t +90 549 524 6911 e [email protected]

For Mace, every project is an opportunity to think and do differently.


METRO PROPERTIES

Gündüz Bayer Managing Director Region Asia / Turkey

Martin Wetjen CFO

METRO PROPERTIES is METRO GROUP’s real estate company. The company combines comprehensive retail competence, highly developed real estate expertise and implementation capability. METRO PROPERTIES is a partner for investments as well as for the development and support of modern wholesale and retail stores. At both the national and international level, METRO PROPERTIES pursues active and value-enhancing property management. Investors, leasing partners and customers receive competent support at METRO GROUP worldwide. Apart from its headquarters in Germany, the company operates through offices in Poland, Russia and Turkey. In other countries, the company is represented by regional managements.

METRO PROPERTIES TURKEY PORTFOLIO A total land of 1,092,256 m² A total leasable area of 419,894 m² Total car park area for 19,901 vehicles 8 shopping Centers in Adana, Ankara, Antalya, Bursa, Gaziantep,

Izmit, Konya, Istanbul. 20 Metro Cash & Carry stores

Osmaniye Mahallesi Marmara Forum Garden Office 34146 N:3 K:3 Bakırköy - Istanbul - Turkey

P: +90 212 454 43 00

www.metro-properties.com.tr/[email protected]

Osman Koçak COO

C

M

Y

CM

MY

CY

CMY

K

metro_ilan_bask›.pdf 2 2/18/16 6:13 PM


MORAL

Vefa Reşat Moral Managing Partner, LL.M.

Efe Kınıkoğlu Partner

Founded in 1968, Moral is a full-service law firm providing legal services to local and international clients under three categories, namely Corporate, Dispute Resolution and Projects. Our fundamental aim is to help our clients minimise commercial and legal risks by providing focused, efficient and solution oriented legal advice and assistance. Our team provides professional legal advice and assistance in real estate law, as well as legal consultancy services to local and international investors within the context of real estate investments and real estate development projects.

Moral’s Real Estate practice covers the following areas; Sale and purchase agreements, Registry proceedings, Real estate development projects, Shopping malls, residences, tourism and hotels projects, Corporate operation systems practices, Lease agreements, Zoning and structuring, Commercial lease and mortgage finance, Joint ventures, Urban renewal, Renovations, Waste management, Real estate tax bills, Security, mortgage, landlord / renter relations, rental, Building permits and regulations, Construction agreements, tenders, acquisitions, Innovative constructions, Real estate acquiring of foreigners.

HONORS AND REPUTATION 2014: Recognized in Who’s Who Legal. 2015: Ranked in Legal 500 as a Recommended Firm. 2016: Awarded as a Corporate Law Firm of the Year in Turkey by

Corporate INTL.Rumeli Cad. No.42 D:9 Nişantaşı/Istanbul/Turkey

P: +90 212 232 35 95F: +90 212 232 38 50

[email protected]

Bilge Binay Kanat Associate


CURRENT ISSUES REGARDING SHOPPING CENTERSCURRENT ISSUES REGARDING SHOPPING CENTERS Shopping centers, as is known, are the rising stars of the Turkish real estate market. Starting from the metropolitan areas in Turkey shopping center investments are now in the spotlight for Anatolian cities as well. Naturally, these investments raise certain legal issues that shopping center managements (“Management”) have to be sensitive about.

USE OF CIGARETTE AND TOBACCO IN THE OPEN AND COLLAPSIBLE AREAS Use of cigarette and tobacco is one of the issues that requires particular attention of the Management, which can be seriously problematic. The relevant legislative regulations permit guests to smoke only in the centers which have collapsible or established rooftops on condition that at least two sides (walls) of such mall are open at all times. Smoking and use of tobacco 5 meters around the entrance of the center is by law prohibited. Accordingly, Management is expected to pay attention to the application of such prohibitions and are expected to display warnings visible to everyone regarding criminal sanctions that may be applied for disobedience to such rules as well as health risks that might arise due to the use of tobacco. One time fines stipulated in relation to permitting smoking in the centers are applied an extra time in the initial repetition and applied twice in the event of second repetition. In case of violation of the relevant prohibition for a third time in the same period, the center will be closed for a time period from ten days to a month.

LEGAL AND CRIMINAL LIABILITY OF MANAGEMENTS REGARDING GUESTS’ SHUTTLE FACILITIES (“SHUTTLE”) IN TRAFFIC Management is obliged to provide the security of the guests during their usage of shuttles. Thus, Management is responsible for the compensation of damages occurring due to traffic accidents of their shuttles unless required duty of care is ensured. Hereof, it is predicted that the court will make an assessment on a case by case basis regarding the determination of Management’s duty of care. Moreover, Management shall also be legally responsible together with the service providing company to the shuttle personnel as well as being responsible from the actions of the shuttle personnel in case the contract between the Management and the service provider is deemed to be an employer-subcontractor relationship.

SECURITY The security of shopping centers is a crucial subject which interests more than one party and can raise severe liabilities. Thus, it’s important to approach this subject by examining various legislations. Moreover, the scope of the aforementioned liability may differ due to several legal and business relationship possibilities. In order to decrease or if possible remove the liability of the Management/Owner, below provided theoretical and hypothetical precautions can be taken in the contract signed between the Security Company (“Company”) and the Management; such as avoiding a perception of subcontractor-primary employer relationship by regulating that this is not a sub-contractual relationship, procuring the acceptance of the Company that all the possible responsibilities which might arise from the contract shall be borne by

the Company, defining clearly that there is no contractual relationship between the security personnel of the Company/Owner and the Management and the security personnel of the Company shall not be understood or interpreted as the Management’s/Owner’s employee.

This article is published to share current developments in

real estate market. Any explanation provided by this article

cannot be considered as legal advice.


OMURGA REAL ESTATE PORTFOLIO MANAGEMENT

Mehmet Erktin Chairman

Tamar Demir YazgülInvestment & Research Associate

Birhan YıldızInvestment & Research Associate

Tolga Kabataş Vice Chairman

Omurga Real Estate was founded in November 2011 as a multi-strategy real estate investment company dedicated to the Turkish market, by Mehmet Erktin, Tolga Kabataş, Burak Divanlıoğlu, Serkan Borançılı and Aydonat Atasever, the latter four being the founders of gittigidiyor.com, one of the most successful e-commerce companies in Turkey. The company is active in real estate development, real estate investments, project management and consulting since 2011 with an impressive customer base. In terms of investments, Omurga realized three investments in seven tranches with a total asset value of USD 52.5 million over the previous three years, and exited most with very high IRRs. Following the newly established REIF regulation in Turkey, Omurga founded Omurga Capital (Omurga Gayrimenkul Portföy Yönetimi A.Ş), received the required licensing from the Capital Markets Board of Turkey. Omurga plans to launch its first fund in the second half of 2016.

REAL ESTATE INVESTMENT FUNDS IN TURKEY (“REIFs”), COMPARABLE TO EUROPEAN ALTERNATIVE INVESTMENT FUNDS Turkish Real Estate Investment Funds (REIFs) are onshore real estate investment vehicles regulated and licensed by the Turkish Capital Markets Board.

Established and managed by Capital Markets Board licensed Real Estate Portfolio Management Companies & Portfolio Management Companies

Simple and easy way to participate in a diversified real estate portfolio

Exclusively invest in Real Estate. Restricts all forms of real estate development, including revenue share. No development risk exposure

In addition to CMB regulation, all fund assets kept by independent custodian (Top Tier Turkish Bank) and all fund units are registered with Central Securities Depository.

Despite onshore status, full exemption from corporate/withholding tax, no income tax for non-residents (non-Turkish investors)

Harman Sokak 4/5 Levent 34396 Istanbul/Turkey

P: +90 212 325 32 50F: +90 212 325 37 20

[email protected]

Oğuz Kösebay General Manager

P: +90 212 325 32 50 F: +90 212 325 37 20Harman Sokak No:4/5 39394 Levent, Istanbul/Turkey

www.omurgacap.com


ÖNGÖREN LAW OFFICE

Prof. Dr. Gürsel ÖngörenFounder Partner/ Senior Legal Counsel

Öngören Law Office was founded by Prof. Dr. Gürsel Öngören in 1998. Prof. Dr. Gürsel Öngören contributes to several nongovernmental organizations such as the Board Member of GYODER (The Association of Real Estate Investment Companies), the Vice President of AYIDER (The Association of Anatolian Side Building Contractors) and the President of “The Urban Transformation and Law Platform” in addition to his scientific researches in the university. Öngören Law Office provides legal consultancy and advocacy services to real estate investors, real estate owners and construction companies within the scope of zoning, structuring and purchase of real property transactions with associate expertise lawyers. Our office has a 15-year experience in zoning plan chances, zoning plan cancellation suits and building license cancellation suits and the related litigation procedures are being followed up by a team of expert lawyers in the light of scientific perspectives constituted by an academic staff on zoning plans and zoning law. Our office started to work in the field of urban transformation in 2005 at Fikirtepe, Istanbul, and with the Law number 6306 which became effective in 2012; we obtained the most experienced team of lawyers in this field to provide legal consultancy regarding “risky buildings” and “risky areas” to several public enterprises, municipalities, investment and construction companies, housing estates and apartment buildings. Our office does not only offer legal consultancy services to foreign investors on real estate purchasing-selling and leasing processes but also offers debt collection services in a quick and efficient way in addition to compensation cases. Öngören Law Office provides legal services in an efficient and result-oriented way using the experience from hundreds of projects regarding the fields of real estate development, urban transformation, zoning and construction which it took part in.

Meşrutiyet Cd. Ersoy Han No:102/11-12 Beyoğlu / Istanbul / Turkey

P: +90 212 292 56 23F: +90 212 244 51 93

[email protected]


NEW OPPORTUNITY = URBAN TRANSFORMATION Real estate investments require economic stability. The political stability obtained as a result of the elections in 2015 which will lead us to economic stability as well. This improvement shows us that Turkey will continue to attract real estate investments in the near future. Especially the instability in the Middle East render Turkey a safe harbour. The families of middle income level living in these countries prefer Turkey for the education of their children or health services. Religion and cultural closeness are the basic reasons for this choice. We have been hosting many investors in Turkey during the recent five years due to these reasons. Giving residence permits and citizenships to these investor families are advantages each. Urban transformation has been the most important subject for the last three years. Within the scope of urban transformation, 7 million houses and workplaces will be renewed. Since Turkish people have such spending power, urban transformation income is very important for the investors. Turkish investors have noticed this opportunity and they constantly make investment into this area. This area is also very attractive for foreign investors. Especially for the investors who make their investments in long term durations such as 10 years, urban transformation seems to be very profitable. Especially the population density of younger people keeps the need for more residential housing on the agenda. Every year, there is a need for 700,000 new housing units. The saving and using bank loan habits of Turkish people facilitate the financing of these new houses. This is why domestic and foreign construction companies continue making investments into this area. Since 1/5 of this need is in Istanbul, Istanbul is a

major attraction for foreign investors. However the people who are planning to make investments to Istanbul should produce houses for middle and low income families. The need of the high income families for new housing is not as high as before. The foreign investors should also know that there are many opportunities outside Istanbul. Especially Bursa, Antalya and Izmir have interesting statistics. These cities should also be studied for investment. The new trends in real estate develop towards the use of common areas within the real estate industry. The younger population has significant interest for building with rooms of general and joint-use such as guest room, gym, cinema room. We recommend the new investors to investigate and study these areas. As a result of the studies we made during the last two years, we can say that the urban transformation projects are predominantly are most intense area of study. We also had the opportunity to work on lawsuits such as development plans or building license cancellations. In order to ensure that such lawsuits diminish, the recommendations such as “building license being adopted as an earned right “ attract the attention from the government as well. We can state that we will make a legal arrangement in this regard soon. Especially the plans planned with reputable law firms eliminate any surprises. Investments take place under safer conditions under the predictions of the legal experts. As a result, the regional developments and savings of Turkish people show that the real estate investments in Turkey will be profitable for both foreign and domestic investors.


PROJE BEYAZ

Murat UzunChairman of the Board

Deniz DerelliGeneral Manager

Tolga HanVice Chairman

Derya DenizBoard Member

Proje Beyaz was established in 2006 with a young and dynamic team strongly focused on innovation. Named as the “the company that embellished the industry” by market players, the company has completely transformed the old-fashioned real estate marketing and brought new products and services. Until now, Proje Beyaz has undertaken the project management processes of more than 30 large-scaled projects with a volume of USD 2 billion covering a construction area of 1,5 million m2. The company offers the services of concept consultancy, sales and marketing, after sales and facility management for land owners, real estate owners, investors, lease holders in collaboration with the leading construction, architecture and interior design firms. The business adventure of Proje Beyaz has started in Turkey, and now it’s spread to Europe and Gulf countries. Istanbul has been covered with two offices in European and Asian sides while the firm expanded in Izmir, England, Germany, and Kuwait. Additionally, an office in the USA is coming soon. Proje Beyaz will continue to embellish the industry with passionate business practices on successful new projects. The firm is also a member of to GYODER and FIABCI since 2013.

Istanbul Europe OfficeKempinski Residences Astoria A Kule 1506 ŞişliIstanbul / Turkey

P: +90 444 89 13

Esentepe Mh, Büyükdere Caddesi No: 127 Astoria Residence B Kule 127/1802, 34200 ŞişliIstanbul/Turkey

P: +90 212 215 20 87

[email protected]


SISTEMA Founded in 2001, SISTEMA TEKNOLOJIK YAPI is a full-service organization, active in middle and large scale contracts, contractual sub-contract, delicate design workmanship and architectural contract, conceptual design, electric - electronic - automation - data processing - mechanical projects design, installation and commisioning, operation and service fields as well as import transactions and integrations of various products in relation to the general scope. SISTEMA serves its customers with a well skilled, young and dynamic operational core staff of 100+ people, highly educated and technically expert on their fields ensuring every project has access to the best of talent and resources. The wide span of field force is approximately 1200+ team members. SISTEMA righteously prides itself on ability to carry out medium and large-scale “office” project desing & construction contracts as the market leader in Turkey, in the shortest application time smoothly and easily thanks to its flexible organization and strong pre-financing structure. Furthermore, contractual relations with countries such as Turkish Republics, Russia, Germany and U.A.E are carried out in means of direct and indirect material / service export and technological construction projects. Rendering service on a wide scale, the design and build contracts of SISTEMA are mainly offices and general management buildings, call centers, high level IT and data processing centers, educational facilities and campus buildings, hotels, chain shops, bank headquarters / branches and financial institution buildings and branches, projects and planning, control, follow up, design and concept development services, application, operation and services in relation to these contracts.

Nisbetiye Cad. Birlik Sok. No:291.Levent - Istanbul - Turkey

P: +90 212 324 50 02F: +90 212 324 50 04

[email protected]

Ihsan KendirliChairman


STATE CORPS

Shamsullah MomandCountry Manager

Uluç Ali ÖnderAssistant General Manager

State Corps is an engineering and construction firm registered with US Government Virginia State, with operational office in Afghanistan (registered with Afghanistan government) and with active branches at Dubai, Turkey and Qatar. The company has experiences of implementing huge construction and power projects in Afghanistan and Middle East. SC has implemented more than 42 design/build and site-adapt construction projects funded by USACE, AFCEE and other international agencies. State Corps is actively working in Afghanistan since last one decade and has proven performance record of Executing above USD 250 million worth of work with US Army Corps of Engineers throughout Afghanistan and Middle East districts. We believe our successful performance on these projects demonstrates that we have effective project management plane processes in place, with superior strengths and merits. The company has received 2010 and 2011’s “Excellence in Construction and Safety” award from USACE. The company’s overall strategy is based on setting objectives, measuring results, and providing feedback to facilitate further growth of its staff, efficiency in project management and satisfaction of its clients. State Corps Turkey has been established in 2015 as a branch office of State Corps. We are mainly focused on real-estate development and project-basis joint venture opportunities with reliable partners. Our aim is to realize the development projects in the shortest time and become a key player in real estate market of Turkey.

State Corps Turkey Buyaka2 Sitesi, Kule-3 Daire No: 114 - Ümraniye Istanbul, Turkey [email protected]: +90 216 466 32 55F: +90 216 466 32 65

State Corps Dubai2301, Jumeirah Business Center 2, Cluster V, JLT, Dubai, [email protected] State Corps U.S.A6412 Brandon Ave #341 Springfield, VA 22150 U.S.A. [email protected]: +1 919 348 0850

State Corps AfghanistanBehind Suriya High School, Karte Char, Kabul, [email protected]

State Corps QatarSharq Capital Bldg, 311, C-Ring Road P.O. Box: 6029, Doha, [email protected]

C

M

Y

CM

MY

CY

CMY

K

ilan ok.pdf 1 24/02/16 11:25


TAHINCIOĞLU

Özcan Tahincioğlu Chairman

Alpaslan Çalım General Maganer

Tahincioğlu Real Estate is a Tahincioğlu Holding group company, operating in the real estate development and investment. Tahincioğlu Real Estate, one of Turkey’s leading trademarks in the real estate industry, undertakes premium retail, office, residence and shopping center projects as well as the construction and development of luxury hotels. In addition to these projects, the company also actively manages its extensive portfolio comprised of revenue-generating real estate assets. The total construction area of projects completed by Tahincioğlu covers over 2 million m2 to date. Tahincioğlu’s construction company Nida Construction is the general contractor for all these projects. Among the projects that have become synonymous with the company are Palladium Tower, Palladium Ataşehir Shopping Center and Residence, Palladium Antakya Shopping Center, Nidakule Kozyatağı, Nidakule Göztepe and Swissôtel Grand Efes and Convention Center. The constructions of LEED Gold Certificate candidates Nidakule Financial Center, Nidakule Ataşehir and Nidakule Levent as well as the residential projects Nidapark Başakşehir and Nidapark Seyrantepe are in progress. Having completed and delivered Nidapark Beşiktaş in 2015, Tahincioğlu continues to undertake urban transformation projects. Tahincioğlu Real Estate also has several projects in the planning stage in Istinye, Bomonti, Kayaşehir, Zeytinburnu, Çengelköy, Kozyatağı, Beykoz and Yenisahra.

Palladium Tower, Kardelen Sok. No: 2 Kat: 41Ataşehir - Istanbul 34746 Turkey

P: +90 216 687 30 40F: +90 216 687 30 65

www.tahincioglu.com


TEKFEN REAL ESTATE DEVELOPMENT

Ömer EgeselGeneral Manager

Ayşe TuralıAsst. General Manager, Finance & Admin

Tekfen Holding, one of the leading conglomerates in Turkey with its 60 year experience, established Tekfen Real Estate Development Group in 2000 with the goal of developing high quality and innovative projects built to international standards. Since its inception, Tekfen Real Estate Development has completed Akmerkez, Tekfen Tower, Taksim Residences, Tekfen Yalıkavak Homes, Levent Office, Bodrum Gümüşlük Houses, Kağıthane OfficePark and Tekfen Bomonti Apartments, landmark projects that reflect the achievement of this goal. In addition to Tekfen Real Estate Development‘s current portfolio, HEP İstanbul Residential Project and İzmir Mixed-Use Project currently underway stand out as projects that are capitalizing on its experience and vision from design to operation. Tekfen Real Estate Development attaches great importance to design and always works with the best architects, considering environmental responsibilities just as highly as customer satisfaction. Its projects to date are all distinctive not only for their design and construction quality, but also for their originality. With its high quality, environmentally-friendly projects, it offers living and working spaces that enhance their inhabitant’s quality of life. Tekfen focused on meeting Green Building certification standards in its develeopment projects as exemplified by its residentail and commercial projects. Utilising its experience and vision Tekfen Real Estate Development has stepped forward to develop unique residential and commercial real estate projects and continues to be a reference point in the sector.

COMPLETED PROJECTS Akmerkez, Istanbul 1993 Tekfen Tower, Istanbul 2003 Taksim Residences, Istanbul 2006 Tekfen Yalıkavak Homes, Bodrum 2008 Levent Office, Istanbul 2010 Bodrum Gümüşlük Houses, Bodrum 2010 Kağıthane OfficePark, Istanbul 2011 Tekfen Bomonti Apartments, Istanbul 2012

ONGOING PROJECTS HEP İstanbul Residential Project, Istanbul 2017 İzmir Mixed-Use Project, Izmir 2018

Kültür Mahallesi Tekfen Sitesi Budak Sokak D Blok No. 2 34340 Beşiktaş/Istanbul-Turkey

P: +90 212 359 37 00

[email protected]

Emre Ülger Business Development, Sales And Marketing Coordinator

C

M

Y

CM

MY

CY

CMY

K

TEKFEN_ILAN ENG.pdf 1 2/3/16 6:26 PM


VADISTANBUL

Süleyman ÇetinsayaChairman

Vadistanbul is the first horizontally large mixed-use project in Turkey. It has been developed by Artas, Aydınlı and Invest, successfully combining all functions required for 21st century living. The heavily-invested architecture of the project has been designed by Iki Design, Turkey’s award-winning architects, and SOM Architecture, an American firm with world-famous projects bearing its signature. Composed of three different stages: Terrace, Boulevard and Park. Vadistanbul will include 1,900 residences, a shopping center of 103,000 m2, 760-meter long shopping street featuring several world famous brands, 300,000 m2 fully-equipped office area and a five-star hotel of 25,500 m2. In addition, 212,000 m2 of land is left for use as public parks, roads and recreation areas. The project will be the new city center of Istanbul with 1,350,000 m2 of total built up area and 42,000 residents working and living within it. Developed on a previous industrial area, Vadistanbul is in a prime location next to a ring road. This area was previously on the outskirts of Istanbul but is now at the center of the city with direct access to every part. Located right next to the conjunction of three ring roads, Vadistanbul is also connected to the main metro system by a 935-meter high-rail which has been constructed by the developers. This high-rail connection will be the first private metro in the whole of Istanbul and provides further ease of access.

Ayazağa Mah Kemerburgaz Cad No:1/A Sarıyer-Istanbul -Turkey

P: +90 444 53 35

[email protected]

Raffles Hotel Istanbul10 May 2016

The Turkish Real Estate Summit 15, will gather top-level executives from leading companies and experts in the real estate sector from Turkey and worldwide. The conferences, meetings, seminars, panels and education programs GYODER has organized are seen as major meeting platforms for the players in the sector.

112 EVENTS INVESTOR’S GUIDE TURKEY 2016

INTERNATIONAL SMART CITIES CONFERENCE

MAPIC

CITYSCAPE TURKEY

15TH TURKISH REAL ESTATE SUMMIT

Rixos Grand, Ankara4-5 May 2016

International Smart Cities Conference, instead of simply explaining the “Smart City” concept to municipalities, offers a pilot project within the scope of its “Smart City Transition Movement” that includes the transition of an area receiving public-private sector investments, and provides a significant opportunity for shared experiences, inspirations and co-operations.

Palais des Festivals, Cannes, France16-18 November

Celebrating its 20th anniversary in 2014, MAPIC has become a major industry event gathering in 2015 8,000+ international participants, including over 2,000 retailers for 3 days of exhibition, conferences and networking eventstargeting all types of retail property: city and shopping centres, factory outlets, leisure areas and transit zones.

Istanbul Congress Center24-26 March

Cityscape Turkey is the latest addition to Cityscape’s world renowned portfolio of events, and is set to be THE meeting place for real estate developers, private and institutional investors, home buyers, architects, consultants and other real estate service providers to network and do business.

urban transformation in turkey

Documents