Receive up to date information about properties and services found at our verseas Property Abroad centre:
Turksih Property Growth Fuelled by IPOs
IPOs are fuelling the soaring growth in the Turkish real estate sector the country's capital markets board has confirmed. This year 5 Real Estate Investment Trusts have made offerings, which the TCMB valued at 650 million lira, and that is not counting the most recent IPO by state-backed developer Emlak Konut estimated to raise 1 billion lira.
The TCMB report also highlighted the 19 Turkish developers on the Istanbul stock exchange, which it says are worth a combined 5.5 billion liras, and their portfolios combined are worth 8.2 billion lira. According to the report, the value of the IPOs (of the 5 REITs) and the 19 developers combined account for 36.7% of the real estate sector's total value.
The success of these developers and the IPOs has led to investment in the real estate sector doubling compared to last year said the report.
"This situation will crystallize due to an IPO by Emlak GYO in November and turn the IPO campaign [by the ISE] into a success story for the sector," stated the report.
The IPO not counted is still being marketed around the world. 625 million shares priced at 1.60 and 2.15 TL each will sell of a 25% share of the developer, which is owned by state housing authority Toki.
The firm, which buys land from government institutions and builds residential housing estates, has said that the money raised will go towards future projects. It currently has contracts in place to build 100,000 homes, on top of the 350,000 properties constructed this year to date.