Akfen REIT to Invest $170 Million in Söğütlüçeşme, Yalıkavak, and Kıyıkışlacık Projects

Continuing to enrich its portfolio with investments in various sectors of real estate, Akfen Real Estate Investment Trust (Akfen REIT) has initiated three new projects in Kadıköy Söğütlüçeşme, Bodrum Yalıkavak, and Kıyıkışlacık. The company will invest a total of $170 million in these three projects, which are scheduled for completion by 2026.

Including the investment-stage lands in Söğütlüçeşme, Yalıkavak, and Kıyıkışlacık to its portfolio consisting of 19 hotels, 2 student dormitory complexes, a holiday village, a factory building, and an office building in Turkey and Russia, Akfen REIT’s total portfolio value has risen to 600 million Euros.

Having left behind a restructuring period since 2021 and as a result, successfully increasing its revenues every term, Akfen Real Estate Investment Trust (Akfen REIT) will increase its investment in the projects in Kadıköy Söğütlüçeşme in Istanbul, Bodrum Yalıkavak in Muğla, and Milas Kıyıkışlacık to $170 million by 2026, from $70 million invested to date.

Sertac Karaağaoğlu, General Manager of Akfen REIT, explained that they have increased the value of their portfolio, which includes 19 hotels, 1 holiday village, 2 student dorm complexes, 1 factory building, and 1 office building in Turkey and Russia, to 600 million Euros with new land acquisitions. “When we started in 2007, we were the pioneers of contemporary city hotels in Turkey. Over the past 16 years, we have become a strong company that diversifies its portfolio with different investments and increases its guaranteed rental income every term by operating our assets through industry-leading operators in their fields. We have completed our preparations for the coming period,” he said.

STARTING 3 NEW PROJECTS

Karaağaoğlu mentioned that they aim to complete the three projects between 2024 and 2026. “With an investment of 38 million dollars, we will bring to life 29 villas on a 22-acre land overlooking the marina in Bodrum Yalıkavak, which will not be blocked by any construction. We expect to generate revenue of approximately 60 million dollars from the sale of these villas. We have started the project, designed by Tabanlıoğlu Architects, and aim to deliver by 2025,” he stated.

Regarding another project, Karaağaoğlu shared, “In the Kıyıkışlacık region of Bodrum, we will develop a new project on 83.5 acres of land with an investment of 90 million dollars. The project, which is 15 minutes by sea to Bodrum center and 5 minutes to Güllük Port next to the airport, will include single-storey and duplex houses consisting of garden and roof duplexes. The project will also feature a hotel.”

Sertac Karaağaoğlu also mentioned the project in Kadıköy Söğütlüçeşme, Istanbul, “We have started producing dining and cultural-art spaces on a 19,000 square meter area with completely eco-friendly structures that will not exceed the height of viaducts, developed by Tabanlıoğlu Architecture. We will bring our open-air market concept, similar to those in European cities like London, Barcelona, Paris, to life in the first quarter of 2024 with an investment of 45 million dollars.”

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“Akfen REIT’s asset value has reached 600 million Euros, and we have increased our annual rental income to 29.5 million Euros,” said Karaağaoğlu. “We have conducted our first convertible bond issuance. We have closed a significant portion of our bank debts before their maturity and chose to pursue new investments simultaneously. Thus, we have completed the two-year restructuring period.”