Zirve Eki - ISTANBUL REstate

important marginal difference in the costs when we talk about the
returns, it does offset some returns there in the long run. But we
see much more sunk cost in terms of utility value of the property.
So we don't think the green is a real cost. It is a must. So, beyond
that, for financial feasibility there is dilemma. The most creative
way of improving the feasibility of a project is not investing in land.
So, well, decrease in the initial investment cost and leasing land
of course is a very good solution to that, and it does improve the
feasibility, but the bad part of that is that the bank doesn't like it,
because there isn't a collateral.
fienay Azak-Matt: It depends, it is more than 30 years...
Güniz Çelen: It depends, but it is a concern of many banks, not
only yours. So this a new trend that we can work on. We can work
on long term lease land being financed by banks or of course the
collateral has to be established in another area. This is a dilemma
that I think is very much to be improved and it has to be worked
on. Land against share of property is another great solution that
the Turkish people have been involved since some time and that
is getting much more sophisticated. That is something that can be
worked with. But the problem is that we are still underestimating
land value especially in Istanbul and places like Istanbul. So sorry
about the people talking about overpriced land, but for the future,
we are talking about and appreciation of face value in land. So I
would like to put that to the end of my comments. Thank you.
Nuri fiapkac›: The last word maybe...
Andreas Schiller: The last word Nuri is developing a green
shopping center.
Nuri fiapkac›: Actually as a last word, secrecy of Turkey is under
the actually word of potential. Turkey is a big potential, but the
problem is we should not kill this potential by the wrong investments.
And for that reason, we need an actually proper legislation. If we
can really have all those things, whatever alternative financing or
regular financing and so on, that will be ready in the market. That
is my last word.
Sylvio de Michieli: For financing, one very simple rule is the business
plan assumption has to be clear, credible and conservative.
Alan S. Robertson: On the financing question, there are obviously
lots of criteria that need to be taken into account, but when
Andreas posed the question, it made me think of one of the
legendary British property developers from 1950s, who said that
there are three important things in property: location, location and
location. And that is a factor which I think has been neglected in
the boom years and there were some schemes built in just the
wrong place. And you can look at some of them and say how did
anyone make a decision to build a shopping center there or build
a factory there or build an office building there. So I would say
location is something which has been forgotten about from time
to time. And in these times, everyone needs to get back to the
fundamentals of real estate and location is the key fundamental.
On the green question, I think that green buildings are going to
become increasingly important not just to investors but also to
occupiers as time goes on. But when economic times are tough,
the occupiers and investors won't pay a premium for an
environmentally sound building. So I think the secret to delivering
green buildings has to be in good design so that a more
148 GYODER
Gayrimenkul Zirvesi 10
16-17 Haziran 2010
environmentally sound building is delivered for no extra cost.
Burhanettin Yurtseven: Alan, I think we went to the same
university. Location, location, location is the key factor, the key
driver in the projects and again I am always stepping into the
transparency. Feasibility studies need to be very transparent, need
to be conservative and need to be done with reasonable figures.
And back to the sustainability issue, we as a foreign investor consider
definitely green buildings, green issues in our projects and
developments and also in the future investments. That is all clear.
Andreas Schiller: Thank you very much. Ladies and gentlemen
we are running a little bit out of the time, but it is such an interesting
panel and very important topic. I did not see any question from you
that was somehow the last round but I would be happy if we close
our session with a lady's voice and fienay, may I ask you again?
Burhanettin just said the crisis will be over in a few months. I had
the feeling you disagree a little bit. I do the same. So let's talk about
this. I don't know if the crisis will be over ever or if we have, let me
say, different situation after this crisis which brings different
parameters, which may bring real estate back to realism. So how
is your feeling about this?
fienay Azak-Matt: I don't agree that the crisis won't get over
so fast. I think it will take more longer, especially we expect all the
CDS pays which come up with a loan. The terms are coming up in
the next year. So we will have a second wave I assume. And I also
think, having in mind all the international banks with their problems
and all the governmental debts, so we have huge stones on the
way. But I confirm that it will be getting more healthier. We will go
back to the roots. Everyone will do, all the stakeholders will do their
homework in a better, more traditional and more conservative way.
And also on the ethic-wise, not only in the financial-wise but also
in the ethic-wise, which brings up, you know, more healthy market.
Andreas Schiller: Fine. Let's take this as the last words. I get
some signs that we have to close our panel. We will do this. At the
end, I may say the most important we don't have is not only money.
The most important we don't have is not green buildings. The most
important we don't have is time. Thank you to the audience and
thanks for the panel for giving us your time, for taking the time to
be here. Thank you very much.