Turkish real estate: GCC confirmed as top investor

Updated 18 November 2015

Turkish real estate: GCC confirmed as top investor

JEDDAH: Following the 2012 liberalization of foreign investment law in Turkey, there has been a 500 percent increase in investment from the GCC, which accounts for nearly a quarter of the foreign buyers, at 24 percent.
According to figures released by REIDIN, the leading real estate information company focusing on emerging markets, investment from the Gulf region has increased five-fold since the successful change in law and Saudi Arabia is ranked number one with 48.1 percent of sales.
The news comes as dignitaries from Turkey and Australia gathered to mark the announcement of Nurol Reit’s appointment of one of Australia’s largest and longest established real estate agents, Raine & Horne in Dubai, as the lead agency in the GCC for a AED3 billion property portfolio in Istanbul.
Turkey has a religious and cultural bond with the GCC but is also developing as an increasingly important economic partner.
Trade volume between Turkey and the GCC was close to $16 billion in 2014 and as Turkey is classed as the 17th biggest economy in the world, it presents a healthy investment destination that straddles both Europe and Asia.
At Cityscape Global 2015 in Dubai, 52 stands out of 369 in total were from Turkey, which accounts for 15 percent of all exhibitors, showcasing the increased interest from regional investors.
Classed as the world’s most popular tourism destination in 2014, Istanbul has a strong appeal for visitors from the region, with a 450 percent increase in tourists from the Gulf in the last two years. 
“High capital growth, great investment propositions, important infrastructure projects on the horizon and secure legislation and regulation means Turkey is a key market for today’s property investor and our buyers in the Gulf are demonstrating their confidence in Istanbul’s healthy property market. The developments presented by Nurol REIT offer exciting opportunities with a range of different properties to suit different buyers. We are proud to be in partnership with Nurol REIT and thrilled to be the lead agency in the GCC for this project,” said Sanjay Chimnani, joint managing director of Raine & Horne Dubai.
“Nurol Life, Nurol Park and Nurol Tower will be Raine & Horne’s first foray into Europe, so this is a historic partnership for us,” he added.
Nurol Life are luxury residences in the heart of the city in the Seyrantepe area with four meter high ceilings which allow for exceptional vistas of the Bosphorus and the forest; mixed use community Nurol Park, which is in close proximity to Ataturk Airport is built on former industrial land, which is now prime real estate, and comprises of eleven buildings, two commercial, eight residential and one hotel, with affordable prices for the first time investor; and Nurol Tower homes and offices, which are located next to Istanbul Court in the Maslak area and nearby Taksim and Nişantaşı, by a cross street which sees 2 million people cross it every day.
“As an investment destination for the Gulf countries, Turkey is a strong option, particularly for real estate purchases,” said Ceyda Carmikli, executive board member of Nurol REIT, the $25bn business conglomerate, which boasts a proven track record in the UAE and wider GCC as well, with involvement in Jumeirah Park, Jumeirah Village Triangle, Saadiyat Island.
“Istanbul’s attractive capital returns and strong capital appreciation are drawing substantial interest from this region. The security offered by Turkey’s government-protected title deeds, combined with a young population of 49 percent under 30 who have housing needs, are all appealing to both the home owner and buy-to-let investor,” Carmikli continued.
“In addition to this, the Reciprocity Law, which facilitates real estate sales to foreigners, has increased the investment attractiveness of Turkey. The Turkish real estate market is expecting revenue of $5 billion from the sales of approximately 20,000 houses to the foreigners in 2015. The target for the year 2016 is 40,000 houses and a revenue of $10 billion.”
Guests of honor at the event included Pablo Kang, Australian ambassador to the UAE; Mustafa Levent Bilgen, Turkish ambassador to the UAE; Gerard Seeber, Australian consul general and Erdem Ozan, Turkish Consul General to the UAE.

Aramco shares to make debut as biggest IPO gets bigger

Updated 38 min 11 sec ago

Aramco shares to make debut as biggest IPO gets bigger

  • Samba Capital, NCB Capital and HSBC Saudi Arabia issued a statement late Monday
  • Saudi subscribers were allocated 96.6 percent of the retail offering

LONDON : Saudi Aramco shares make their stock market debut on Wednesday as it emerged that the oil giant could raise even more from its already record-breaking share sale.

Aramco will exercise its 15 percent “greenshoe option” either in part or in whole during the first 30 days of its trading period, its lead managers said.

A greenshoe option is financial jargon for a clause that allows an underwriter the right to sell investors more shares than planned if demand proves higher than anticipated.

Samba Capital, NCB Capital and HSBC Saudi Arabia issued a statement late Monday confirming an earlier report on the Al Arabiya news channel citing an NCB Capital executive.

It means the share sale could generate as much $29.4 billion if exercised fully. The main IPO raised $25.6 billion on Thursday.

Samba Capital said that the IPO was hugely oversubscribed, attracting aggregate subscriptions of SR446 billion, representing coverage of 465 percent.

The listing and trading of the company’s shares on Tadawul starts just four working days after the end of the subscription phase, Samba noted.

The number of individual subscribers was 5.056 million, who bought SR49.2 billion worth of shares.

Saudi subscribers were allocated 96.6 percent of the retail offering with non-Saudis (expatriates and GCC nationals) getting 3.4 percent. 

For the institutional tranche, the final value of subscriptions totaled SR397 billion.

The Saudi Aramco IPO is a key part of the Kingdom’s plan to transform its economy by reducing its reliance on oil, developing its financial markets and attracting increased levels of foreign direct investment.

Saudi Finance Minister Mohammed Al-Jadaan said that the proceeds from Aramco’s IPO would be reinvested, helping to create more revenue channels for the government.

The Aramco IPO is expected to pave the way for more privatizations in the Kingdom.

“Privatization is at the top of the government’s priorities,” Al-Jadaan told reporters on Monday.

“We will continue to support big projects and will continue to support promising projects,” he said. “Enabling the private sector is the top priority of Vision 2030. We have more to come and our journey toward Vision 2030 demands