EBRD partners with Nef, enters real estate sector in Turkey
The European Bank for Reconstruction and Development (EBRD), which had previously come to the fore in Turkey with a variety of loans it provided for mainly large infrastructure investments, has taken part in the real estate sector for the first time. The joint venture company established by real estate giant Nef and the EBRD would construct both residences and student dormitories.
Nef and EBRD, which established Nef-EBRD Real Estate Development Inc. with capital of $120 million, will develop 5,000-unit housing projects and 6,000-bed capacity academic residence (student dormitories) projects with an investment of $600 million in the first stage. Management of the partnership will be conducted by Nef's affiliate Intus Capital. Nef and EBRD decided to develop modern, earthquake-resistant and energy-saving real estate projects in Turkey. Predominantly, the joint venture aims to construct residences.
The signing ceremony for the partnership between real estate giant Nef, which was established in 2010 and has developed more than 25 projects over the past five years, covering more than 1 million square meters and amounting to more than $2.4 billion in total, and the European Bank for Reconstruction and Development (EBRD) was held at EBRD headquarters in London. The aim of the partnership was announced as "extending urban transformation and greener standards in the real estate sector."
Size of investment expected to exceed $600 million
In this partnership, the two parties will realize Nef's unique housing concepts regarding the growing middle class in Turkey by each contributing $60 million. The size of the investment will exceed $600 million with project-based financing in addition to this capital.
Among the concepts to be realized in this project are the Fold home concept, which includes joint living units, such as guest rooms, cinema, fitness center, meeting rooms, kitchen and dining rooms up to 24 in number, and NOVU, a student residence concept, which was first launched in Merter in Istanbul in September 2016.
While the NEF-EBRD joint venture will be managed by Nef's affiliate Intus Capital, investments will also focus on urban transformation, including redevelopment of structures at high risk of being affected by earthquakes.
Thanks to their design features, projects to be developed will be able to receive an LEED (Leadership in Energy and Environmental Design) GOLD certificate, regarded as a sign of excellence. This certificate covers the conditions to ensure more sustainable management of construction sites, such as energy saving, water efficiency, recycling, reuse of construction materials and the minimization of construction waste.
Answering questions following the signing ceremony held in London, Nef Chairman Erden Timur said: "We are pleased to launch this long-term partnership with the EBRD and continue investing in Turkey's future. This partnership is an important vote of confidence in our country's economy."
Nef and EBRD, which established Nef-EBRD Real Estate Development Inc. with capital of $120 million, will develop 5,000-unit housing projects and 6,000-bed capacity academic residence (student dormitories) projects with an investment of $600 million in the first stage. Management of the partnership will be conducted by Nef's affiliate Intus Capital. Nef and EBRD decided to develop modern, earthquake-resistant and energy-saving real estate projects in Turkey. Predominantly, the joint venture aims to construct residences.
The signing ceremony for the partnership between real estate giant Nef, which was established in 2010 and has developed more than 25 projects over the past five years, covering more than 1 million square meters and amounting to more than $2.4 billion in total, and the European Bank for Reconstruction and Development (EBRD) was held at EBRD headquarters in London. The aim of the partnership was announced as "extending urban transformation and greener standards in the real estate sector."
Size of investment expected to exceed $600 million
In this partnership, the two parties will realize Nef's unique housing concepts regarding the growing middle class in Turkey by each contributing $60 million. The size of the investment will exceed $600 million with project-based financing in addition to this capital.
Among the concepts to be realized in this project are the Fold home concept, which includes joint living units, such as guest rooms, cinema, fitness center, meeting rooms, kitchen and dining rooms up to 24 in number, and NOVU, a student residence concept, which was first launched in Merter in Istanbul in September 2016.
While the NEF-EBRD joint venture will be managed by Nef's affiliate Intus Capital, investments will also focus on urban transformation, including redevelopment of structures at high risk of being affected by earthquakes.
Thanks to their design features, projects to be developed will be able to receive an LEED (Leadership in Energy and Environmental Design) GOLD certificate, regarded as a sign of excellence. This certificate covers the conditions to ensure more sustainable management of construction sites, such as energy saving, water efficiency, recycling, reuse of construction materials and the minimization of construction waste.
Answering questions following the signing ceremony held in London, Nef Chairman Erden Timur said: "We are pleased to launch this long-term partnership with the EBRD and continue investing in Turkey's future. This partnership is an important vote of confidence in our country's economy."