US and European institutional investors have backed BLG Capital with €152m ($166.4m).

The investment manager, which invests in prime Turkish real estate, closed its second opportunity fund.

Approximately 70% of capital raised for the BLG Turkish Real Estate Fund II vehicle came from the US.

European and Middle Eastern investors also backed the fund. 

Serdar Bilgili, BLG Capital chairman, said existing and new investors regarded Turkey as an attractive, long-term growth market for real estate investment.

Three initial investments are being made for the fund in Doğuş Holding’s Galataport scheme.

The redevelopment of the Bosphorus scheme includes retail, office and leisure elements.

BLG Capital said it was also investing in the VK 108 residential development in Istanbul, as well as a mixed-use hotel and residential scheme in Bodrum.

The company said difficulties faced by Turkey’s real estate sector had caused a pick-up in the number of distressed situations and a shortage of capital for prime development projects.

BLG Capital’s previous fund deployed €142m in six investments, including Ortakoy, Cakmakli and Florya Aparts.

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