London-based Cordea Savills has postponed its €400 million ($565 million) Cordea Savills Turkish Property Ventures fund.
The opportunistic vehicle launched in April promised 20 percent–plus returns in the country, which is outside the European Union. It pointed to Turkey’s “fast expanding economy” as a reason to invest in development, primarily shopping malls and residential property.
However, the firm has experienced less demand than anticipated for the vehicle since then. A spokeswoman confirmed that the fund was now not being raised, and added it had been the only fund Cordea Savills had planned for this year.
Despite the recent difficulties in raising capital, many investors over recent months have invested capital in Turkey.
When announcing the launch of its Turkey fund, Cordea Savills pointed to the country’s economy having more than doubled the forecasted annual average GDP growth of the Eurozone.
“It has a large and growing population that continues to undergo rapid urbanisation, creating demand for modern retail, commercial and residential property,” it said at the time. “With education standards having increased to Western European levels, candidature for European Union membership and stabilising inflation, Turkey is well positioned to enjoy rapid development and is attracting substantial investor interest.”