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

DAILY SABAH WITH WIRES
ISTANBUL
Published 29.04.2016 20:18

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

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

Maasfeh said that Al Qemam Group already has land due to its previous investments in Turkey; therefore, they do not add the cost of the land to their construction costs. He continued, "We purchased the land in Bahçeşehir in 2011. The current value of the land in Bahçeşehir is $120 million, while the estimated value of the land in Zeytinburnu is $250 million." According to the information provided by Maasfeh, the Bahçeşehir project will consist of approximately 2,600 residences and commercial areas and the Zeytinburnu project will consist of approximately 1,850 houses and commercial areas. Maasfeh said that they will finance the projects though the group that they operate under and they will offer installment plans to their customers rather than encouraging them to get bank loans.

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

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