UAE investors currently place third after those from Saudi Arabia and Kuwait in making commitments to the real estate options at the Istanbul Finance Center which is under development. A Saudi asset management firm has just inked one for $67 million for a property that would be used as a hotel — to be operated by Millennium — once the free zone is completed in 2018.
“We haven’t formally started the sales process — but going by the early commitments we shouldn’t have any issue in reaching our targets,” said Idris Demirhan, Regional Director at IFC. Turkey’s real estate giant Agaoglu has taken on the role of master-developer for the project.
“Gulf-based investors are keen to raise their exposures in Turkey, and IFC can be the ideal vehicle for them to be in. From the talks we had with UAE based investors here, there are some looking to make bulk purchases of 10 to 20 units within the buildings.”
IFC is being developed over a 350,000-square-meter land mass and will have a built-up of 2.7 million square meters. Overall development costs are estimated at $10 billion.
Turkey’s Central Bank will be relocating its headquarters to IFC — the tallest building within the development — once the project is complete.
By Manoj Nair
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