Carving its reputation as a GCC investment hotspot, international real estate sales in Turkey increased 22% in H1, according to the Turkish Statistical Institute. Ceyda Carmikli, executive board member of Nurol REIT, speaks with Construction Business News ME about sustaining the pace
Turkey-based Nurol Gayrimenkul Yatırım Ortaklığı A.Ş. (Nurol Real Estate Investment Trust) has a significant active portfolio, including Istanbul’s finance and business centre Nurol Plaza; most luxurious housing project in Ankara; and Karum Business and Shopping Centre, among other notable projects across the country.
The company is now bidding for more GCC investment for its upcoming projects, Nurol Life, Nurol Tower and Nurol Park.
With the Turkish economy demonstrating strength, the developer expects an influx of potential real estate investors who have long-term investment perspectives.
Carmikli says that Nurol REIT’s entry into the region invites GCC investors to form a business or build a home base in Turkey. It isn’t the only developer promoting the opportunity; with an estimated 25,000 real estate sales for foreign buyers annually, currently only 3.5% of Turkey’s annual real estate output is sold to non-nationals.
“The Turkish market has many advantages for GCC firms and individuals, such as the country’s growing economy in parallel to the young age demographic, as well as the new rules and regulations that enables foreign companies to merge into the market. The reciprocity law has attracted a lot of foreign, especially GCC, investors to invest in the Turkish real estate market.”
In addition, she says that Turkey is centrally located, close to both the Middle East and Europe, and shares similar customs and cultural similarities that can be advantageous to GCC investors.
The company believes that GCC investors can greatly contribute to the Turkish business world as well as benefit from the political will of their respective countries to enhance their economic cooperation.
On another had, while global investments have also been most welcome, Nurol is focussed on the GCC as of now. She says: “We are always looking for foreign investment in Turkey to boost and improve the Turkish business worldwide, therefore we are always on the lookout for any potential investors but currently we are mainly targeting GCC investors.”
In terms of benefits, Carmikli assures that from a general return on dollar basis and investment point-of-view, an investor has the possibility to reap over a 5% return over a five (or more) year period.
The reciprocity law enables foreign investors to acquire in Turkey unconditionally, giving outside investors the same rights as local Turkish citizens, and protecting their investment purchases.
She explains: “All foreign investors have the same structural advantage and legal framework as Turkish citizens in Turkey. There are some alternatives of corporate entity structural possibility which may create different taxations. But generally, all the investors are under the same protection from the same legal framework.”
Nurol Real Estate Investment Trust (Nurol REIT) was founded in September 1997 and by December 1999, 49% of its shares were offered in an initial public offering. With these developments in handNurol REIT’s asset size reached $491m and $830m as total investment by the end of 2014.
Nurol Holding has been present in the GCC for over a decade with Nurol Construction offices and construction projects in Abu Dhabi and Dubai.
Upcoming projects
Nurol REIT has currently opened investments for three mixed use projects in Istanbul, Turkey.
Nurol Life
Nurol Life rises over a 9,500m2 land plot in Seyrantepe, Istanbul. The structure is an aspiring concept of, what we like to call “practical luxury”, where we try to create the setting of style and serenity by bring in award-winning architect, Hakan Kiran, who is known for his contemporary work. The mixed use project will be 50 storeys high, and will comprise of 440 tower flats and 26 terrace homes, along with 50 offices. It will house recreational amenities such as a pyramid shaped roof bar, pool and café, for its residents. The project will be completed by Q1 in 2017.
Nurol Park
Nurol Park, situated in Gunesli, Istanbul, covers an area of 55,000m2 and offers easy access to the two main highways in Istanbul that connects Asia and Europe. The mixed use building includes 43,200m2 landscape area, eight residential units, one office block, 84 Loft, 884 Tower, 544 Residence spaces. Facilities such as indoor and outdoor pools as well as fitness centres create a community and neighbourhood life, the concept is to cater to all the basic needs of a family and have everything within close proximity and at ease. The project is planned for completion in 2016.
Nurol Tower
Nurol Tower is located in one of the commercial center of Istanbul, Mecidiyekoy, and built on 7,000m2 of land. The multi-purpose building offers first of its kind “HomeOfficeHome®” concept, providing the ideal homeoffice location to be productive whenever needed. It also includes Nurol Tower Bazaar, which has cafes, restaurants and shops, such as pharmacy, hair dresser, dry cleaner, as well as banks’ ATM. Nurol Tower is also a candidate of LEED Gold, striving to create an environment-friendly environment with 20% efficiency in energy consumption. It will be completed in the 3rd quarter of 2015.