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"State-owned Turkish developer Emlak Konut planned to sell of a 25% share in the company. The sale, which was being managed by UniCredit Spa and Türkiye Sinai Kalkınma Bankası and consisted of 625 million shares priced from between 1.60 TYR to 2.15 TYR was held over 2 days November 8-9.
The sale was expected to raise 1.34 billion dollars, part of a 5 billion TYR fund-raising initiative to finance future projects. Data hasn't yet become available on the sale.
Owned by government housing authority TOKI, Emlak Konut buys government land (Treasury, military and roads authority) and then hires contractors to build housing estates in a revenue share agreement. The company currently has assets worth 6.9 billion liras.
This is the 6th IPO by Turkish property companies this year, after 5 real estate investment trusts have already been floated.
“We will use the proceeds from the IPO in new projects,” Murat Kurum, chief executive officer of the company, said in the statement.
The sales are doing well because the Turkish property market is currently hot news. Employment and affluence are rising at a time when growth and liquidity are high and interest rates are low. This is generating massive demand for housing in the country, and massive growth in the mortgage market.
Real estate investment trusts are also showing interest in investing in new ultra-luxury developments on the Mediteranean and Aegean coastlines according to New Home in Turkey, a real estate agent specialising in property in Turkey.
"Build costs are very low in Turkey, and the price of super luxury units, including large, luxury Antalya apartments, is rising rapidly as the country's profile increases. This is leading to increasing interest from real estate funds in buying large amounts of land on the Aegean and Mediterranean Coast in order to capitalise on the situation," said Aydin Cakir, director of the firm.
