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Turkey-based Emlak Konut Gayrimenkul Yatirim Ortakligi has signed an agreement for a revenue-sharing project involving land sale in Istanbul. Under the agreement, the real estate investment trust will have a share of INR equivalent to 2.7 billion Turkish lira in the project’s revenue. The deal adds to Emlak Konut’s use of revenue-sharing arrangements for property development, a model that has remained an important part of its business. The company is one of Turkey’s largest real estate investment trusts and has developed residential and commercial projects across the country.
Emlak Konut Gayrimenkul Yatirim Ortakligi said it has signed an agreement for a revenue-sharing project involving land sale in Istanbul, with the company’s share of revenue set at 2.7 billion Turkish lira.
The agreement follows Emlak Konut’s continued use of revenue-sharing models for its property projects. Under this model, the company works with contractors on development projects and receives an agreed share of the revenue generated from sales. Fitch Ratings said in May that revenue-sharing models accounted for a large part of Emlak Konut’s revenue generation, with the company deriving around 75%-80% of its revenues from such arrangements.
Emlak Konut is a Turkey-based real estate investment trust and a subsidiary of the country’s Housing Development Administration, known as TOKI. The company’s portfolio includes residential and commercial developments, and its investor information states that it has completed hundreds of developments and conducted hundreds of project tenders.
The company has also expanded its financing activity in the real estate market. Last year, Emlak Konut raised around USD 526 million through a real estate certificate IPO for its Damla Kent project, with the proceeds intended to support the construction of 2,214 residential units.
The latest Istanbul agreement adds another project to the company’s pipeline as it continues to use land-sale and revenue-sharing arrangements to develop property while sharing project revenues with its partners.
Source Reuters
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