Zirve Eki - ISTANBUL REstate

16-17 Haziran 2010
Ömer ‹svan:
What I meant was the mechanics of investment being institutional
in general. So it is still a little bit of a gut reaction of a construction
company or a textile company or a high net worth fund company
without the necessary ingredients put into it in terms of know
how.
Oturum Baflkan› : Jakob Forstnig
Product that came out would suit an institutional
investor. That is what you are saying.
Ömer ‹svan:
Maybe accidently yes but not designed to be so.
Tavit Köletavito¤lu
Atlas Proje, Baflkan
Thank you very much and good afternoon everybody. As a matter of fact,
25 years ago when we have just started the touristic development and
tourism as a sector was not a competitive sector, was not considered to
be a competitive sector. And tourism was, if I may say, denied by the
institutions starting with the banks. That is why government had specified
a bank, development bank for investment of or financing Turkish investors
and also the incentives starting with government land been given to the
investors plus the grants. The average grants was maybe at most 15% of
the total cost of the investment which was almost not bigger than the half
of the grants that Spain or Portuguese or Greece was given. But still there
was a big potential of Turkey starting with the Turkish coasts because of
the sea, sand and sun type of tourism. That is why that government on
those years just forced everybody including, starting with the government
institutions and also they asked private banks to take part as well. But on
those years, the private banks had taken some risk with a very very limited
portion. If I may say it was marginal, it is true. Now, in the meantime within
this 25 years, the development in Turkey became very very fertile in terms
of investments. First of all, Turkey became an address in both schemes. First
the coast of Turkey became one of the addresses in the Mediterranean
coast and Istanbul gained its importance day by day with the increasing
investments. That is why either in Istanbul and other cities, starting with
Istanbul in the cities of Turkey, or in the coast, tourism became a vital
business. This is very important. That is why right now the institutional
investors are considering tourism as a vital sector and that is why they are
considering it. That is the reason the foreign banks or Turkish banks are
positively considering the Turkish investments. These are very important and
Gayrimenkul Zirvesi 10
Oturum Baflkan› : Jakob Forstnig
Thank you. So that means we do have a, let's say, convergence
of international criteria and local investment activity or
development activity. Let's see, if we can, when we come back
to Bettina, Theodor. They have some examples or even get
some interest from them for that. Tavit, you have been also
in the industry for 35 years here in Turkey. You told me you
also were in the public sector for some time. Ömer mentioned
that there are several, let's call it challenges for investors in
hotels. Obviously the commercial, let's say parameters of
investment should be interesting if somebody is trying to do
it for the right reasons, but also obviously an investor is looking
for clear title on a hotel and there might be other challenges
in the process that are very specific to Turkey. So, again, talking
about the criteria for hotel investments, international as well
as in Turkey, where do you see a special situation here? For
which reasons do you think somebody should have a closer
look when we come to Turkey for hotels?
within this 25 years, many things has changed not only tourism as a vital
and as a competitive sector, also the banking system had realized this and
started constructing positive relations with the tourism sector. Right now at
2010, we are living in such circumstances. That is why in the coming days
apart from incentives of the governments or the strength of the collateral
or something like that, now we are at the stage of putting the criteria of
fertility of the investment or, if I may say, internal productivity of the investment
to the first place. This is very important. This has changed and this is a very
positive change.
Jakob Forstnig: So, if I may ask Theodor, you have, as you mentioned, as
an institutional investor, your criteria for the operator, for the yield for other
aspects, the lease contract. What would you say specific to Turkey or to
Istanbul, because you are rather looking in Istanbul. When you look at an
opportunity here, what other issues do you see as being a challenge?
Theodor Kubak: I think I am in a unique position having lived in Istanbul
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GYODER