Cordea Savills Launches Turkish Property Ventures Fund Print
Saturday, 19 April 2008 18:10

Cordea Savills, the international property fund manager, intends to launch a Turkish opportunistic fund. The Cordea Savills Turkish Property Ventures Fund will invest in development opportunities, primarily shopping centers Cordea Savillsand residential property, with a target return of 20% per annum.

 

Turkey has a fast-expanding economy with more than double the forecast annual average GDP growth of the Eurozone. It has a large and growing population that continues to undergo rapid urbanization, creating demand for modern retail, commercial and residential property. With education standards having increased to Western European levels, candidature for European Union membership and stabilizing inflation, Turkey is well positioned to enjoy rapid development and is attracting substantial investor interest.



Key themes supporting Turkey's property market include:

  • Turkey's property market is characterized by low supply, creating potential investment opportunities with attractive risk-adjusted returns
  • There are cities with substantial populations but with limited modern retail provision. Despite strong retail sales growth, provision of modern retailing stock is still below the EU average
  • International brands are clamoring to enter the market and are creating substantial demand for high quality product.
  • The government estimates that 650,000 new houses a year are required to satisfy forecast population growth, combined with population movement from east to west and from rural to urban

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    Ian Jones, Director of Investment at Cordea Savills and Portfolio Manager for the fund, commented: "The Turkish Property Ventures Fund will offer exposure to a large and dynamic economy characterized by high GDP growth and a young and growing population with increased spending power. There is a dramatic shortage of quality stock in all sectors and strong demand from some household name companies for retail outlets. Turkey is still an emerging market but by partnering with local developers we will tap into local expertise and mitigate substantially the development risk.”

 

The fund will be a Luxembourg FCP with a planned life of five years. Target equity will be €400 million with target leverage of 60% loan to cost (construction cost plus land value). On completion of the developments, the fund value is projected to be in the region of €1 billion.

 

 

 

About Cordea Savills

 

  • Cordea Savills is an international property fund manager offering services on a pooled fund or segregated mandate basis. Funds are invested either directly in property, in investment vehicles, or both. Investment styles range from core to opportunistic. 
  • As at 31 December 2007, Cordea Savills managed £3.5 billion (EUR4.7 billion) of gross assets for a range of clients including pension funds, fund of funds, charities and qualified professional investors.
  • Cordea Savills is the brand name for entities in the Cordea Savills group, including Cordea Savills LLP, Cordea Savills Investment Management Limited, Cordea Savills Advisors SpA, Cordea Savills SGR SpA and Cordea Savills GmbH.
  • Cordea Savills LLP is a limited liability partnership registered in England No: OC306423.

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    Source: http://www.cordeasavills.com/