Al Mazaya acquires 50% stake in Turkey project
Ritim Istanbul is spread across 39,000 square meters of land on the Asian side of Istanbul, and contains six towers with presidential and offices units
Kuwaiti real estate firm Al Mazaya Holding has acquired 50% stake at Ritim Istanbul project in Turkey, raising its share of the project to 90%.
The deal is valued at around $25m.
On this occasion, the group CEO of Al Mazaya Holding, Eng Ibrahim Al Soqabi, said: “This acquisition reflects the confidence of Al Mazaya in Ritim Istanbul project; it also reflects the high potential of the project (especially as 80% of it has already been sold while construction is reaching 95% completion) and it has yielded positive returns on the company.”
He added: “The deal has positive financial returns for Al Mazaya from the profits generated by the acquisition and also from consolidating the project’s balance sheet into ours—the handover of the project started in the second quarter of this year, which led to pocketing profits from this handover process.
"Also, the revenue generated from leasing the retail space, which is already 60% leased, will yield positive financial returns for Al Mazaya and contribute to its profitability in the coming period.
"This will prove to be particularly true with Al Mazaya’s stake in the project reaching 90%, which will be incorporated into the company's Q3 2016 balance sheets and profits once all deal procedures are finalised.”
The company also stands to achieve extra profit from the acquired stake, which includes profits from possible sales of the remaining residential units and offices, and also profits from the retail complex that is currently offered for lease and already running at 60% capacity.
Furthermore, Al Soqabi stated that Al Mazaya has protected itself from currency depreciation by ensuring leasehold retail complexes are in Euros or its equivalent in Turkish Lira. This will protect the company from any consequences that may result from the depreciation of the Turkish currency.
Ritim Istanbul is spread across 39,000 square meters of land on the Asian side of Istanbul, and contains six towers with presidential and offices units.
There is also a retail complex spread across over 22,000 square meters of land, encompassing 1,113 residential units, 147 retail shops and 113 offices.