Abraaj buys into top Turkey apartment complex
Manama, August 18, 2013
The Abraaj Group, a leading investor operating in growth markets, has acquired a significant stake in Republika Academic Apartments in Turkey, consisting of two student accommodation assets totalling 1,274 beds.
This transaction gives Abraaj substantial ownership of two exceptional quality assets, according to a report in the Gulf Daily News, our sister publication.
The properties are situated in Ortakoy and Buyucekmece in Turkey, both strong catchment areas for students, young professionals and apartment hotel guests in Istanbul.
Abraaj, which has assets under management in excess of $7.5 billion, will invest alongside leading Turkish institutional investor BLG Capital, the developer of Republika Academic Apartments.
Abraaj and BLG Capital will seek to capitalise on the under supply of institutional quality student accommodation and strong demand for higher education due to Turkey's young and growing population and increasing household income.
The acquisition will be made by the Abraaj Group's income generating fund, which provides stable quarterly returns by investing in real estate across the Mena and Turkey region.
"I am delighted that Abraaj's on-the-ground presence and strong local connections in Turkey have enabled us to identify and acquire a substantial stake in Republika," said Abraaj Group regional head of central Asia and Turkey Selcuk Yorgancioglu.
"Our position as a trusted and valued investor in growth markets has resulted in a mutually beneficial partnership with a respected institutional player," he added.
"We are very excited about our partnership with one of the most reputable global investors in the private equity business, and look forward to developing our portfolio further via additional investments in the student accommodation sector," said BLG Capital chairman Serdar Bilgili.
"The transaction marks an important strategic partnership to further grow the vibrant Republika brand in the rapidly growing student accommodation market of Turkey," he added. – TradeArabia News Service