Intus Capital, the Istanbul-based private equity real estate firm, has formed a joint venture to invest $120 million in Turkish residential and student housing, the firm said Wednesday.
Intus is managing the JV, which comprises the European Bank for Reconstruction and Development and Intus affiliate Nef, a real estate developer. The EBRD and Intus are each contributing $60 million to the partnership. Intus could not be reached for further comment.
The JV will invest in two of Nef’s earthquake-proof, environmentally-focused housing concepts designed for Turkey’s urban middle class. The first, the “Fold home” is a block of apartments with shared facilities, such as a fitness center and meeting rooms, and the second is a student accommodation development. Both projects are designed to be environmentally friendly, with a focus on water efficiency, construction material reuse and waste minimization.
“We see attractive opportunities in Turkey’s residential and student housing and we already have a strong pipeline of projects,” Bülent Kozlu, a managing partner at Intus, said in Wednesday’s statement. “Turkey’s growing population, the increase in mortgage financing and the urban regeneration process led by the government underpin our focus on the residential sector. In the student housing segment, the tripling of the student population in the last 10 years and the lack of accommodation have created unique demand and investment opportunities.”
The EBRD began investing in Turkey in 2009.
“What sets this transaction apart is its strong focus on sustainable construction and operation, which is at the very core of our joint investment strategy,” said Claudia Pendred, EBRD’s director for property and tourism. “We look forward to developing successful housing projects together with Nef in the near future, contributing to the Turkish government’s policy goals of delivering modern, earthquake-safe residences for Turkish families and students.”