QINVEST establishes fund with local company to invest in Turkey
ISTANBUL
QINVEST Asset Management, a subsidiary of Qatari state funds, and RE-PIE founded Real Estate Investment Fund, they announced in a statement on Aug. 18.
The move came shortly after Qatar pledged $15 billion in investments to help Turkey’s economy.
Qatar’s Emir Tamim bin Hamad al-Thani paid a snap visit to the Turkish capital on Aug. 15 for talks with President Recep Tayyip Erdoğan.
According to the joint statement issued by Qinvest and RE-PIE, the fund will invest in commercial properties that have leased agreements with tenants in foreign currency.
Re-pie’s chair Emre Çamlıbel said: “With this fund we aim to attract more foreign institutional investors to our country and expand our investor base with regular coupon payments.”
Çamlıbel said the recent exchange rate movements made Turkish real estate market very attractive for investors seeking capital appreciation.
“We believe that we will attract significant amount of foreign investors in the medium to long term,” he added.
QINVEST, asset management company of Qatar, has been managing over one billion Turkish Liras ($166 million), according to data of Turkey’s Capital Markets Board.
The fund will invest in commercial real estate with long term foreign currency lease contracts, and will distribute the acquired rent to its investors in every three months. Target of the Fund is to distribute at least 7 percent foreign exchange-based rent over the principal amount invested by the investor.
Turkey’s first real estate portfolio management company, Re-pie has portfolio size of 320 million Turkish Liras and has three active real estate investment funds.
There are about 2.3 million square meters of real estate stock in these funds.
Re-pie’s investors are 24 pension funds and 63 individual and institutional investors.
Considering that the $350 billion state fund of Qatar, a very serious potential that can be invested into Turkey, the statement said it is now expected that Qatar will ease the Turkish capital markets by investing in these days when the market conditions are difficult in their friendly country.