German real estate developer Magnat, Austrian property company Immoeast and Israel's Adama Holding Public have jointly acquired an EUR 136 mln portfolio in Turkey from Turkish bank YKB. Each of the three partners holds an equal stake in the consortium, which was awarded the portfolio at the conclusion of a public tender process.
German real estate developer Magnat, Austrian property company Immoeast and Israel's Adama Holding Public have jointly acquired an EUR 136 mln portfolio in Turkey from Turkish bank YKB. Each of the three partners holds an equal stake in the consortium, which was awarded the portfolio at the conclusion of a public tender process.
Magnat said that the portfolio is made up of more than 400 assets that amount to almost 250,000 m2 of built land. Nearly 69% of the portfolio’s total cost value is represented by properties located in Istanbul, with the rest spread throughout the country. Its largest component, or 33% of the total portfolio cost, consists of mixed-use properties, followed by residential (30%) and commercial (26%) while a smaller number of assets fall under niche assets.
Much of the portfolio is made up of sale-and-leaseback properties, typically in the business districts of major Turkish cities, that is rented to YKB and subsidiaries with long-term contracts in place. The remainder of the portfolio is made up of assets with development potential for attractive medium-sized residential and commercial properties.
A local asset management team affiliated with Turkish private equity fund Turk Ventures Advisory (Turkven) will manage the property portfolio. That team will be complemented by an Istanbul-based senior representative of the consortium who will support Turkven in portfolio management and the identification of new investment opportunities. Magnat said that it expected a double-digit return on the investment.