Turkey’s Doğuş secures 1-bln-euro financing for luxury Istanbul port project

ISTANBUL

Turkey’s Doğuş Group, one of the country’s largest conglomerates, said on Aug. 31 it had secured 1.02 billion euros ($1.14 billion) in financing from six Turkish banks for a luxury port project near the Galata district of Istanbul along with its project partner, Reuters has reported.

Doğuş CEO Hüsnü Akhan said the group would invest 4.5 billion Turkish Liras ($1.5 billion) in the project, which it aimed to complete in the last quarter of 2018.

He also said The Peninsula Hotels, operated by Hong Kong and Shanghai Hotels, would invest 500 million liras ($170 million) in the project.

The Galataport project envisages a new terminal for cruise ships and a luxury hotel in the touristic Karaköy neighborhood near Istanbul’s historic Galata district, the site of Istanbul’s old berths for cruise liners.

Six local banks

The financing deal was signed with six Turkish banks, Ziraat, İş Bank, Yapı Kredi, Finansbank, TSKB and Garanti Bank, based on a 14-year installment plan with the non-payment of the main capital for a 3.5-year period, as reported by NTV.

The project is expected to lure 7 million foreign tourists and create some $5 billion in tourism revenue when it is completed, said Akhan.

Doğuş Holding and its partner Bilgili Holding placed the highest offer for the privatization of the controversial Galataport project with a $702 million bid in May 2013, winning the rights to operate the port area for 30 years.

The Istanbul Salıpazarı Port Area has up to 10,000 square meters of coastline and covers an area of approximately 112,000 square meters.

“We will create some 30,000 square meters of green area,” added Akhan, as reported by NTV.

Doğuş chair Ferit Şahenk said the project had two key targets.

“First of all, a crucial port area, which has been closed to the access of the people in Istanbul for the last 200 years, will open. Secondly, Istanbul will ascend to a top point it deserves in cruise tourism,” he noted.