Emlak Konut GYO, the listed real estate investment trust whose largest shareholder is Türkiye’s housing agency TOKİ, will hold the first session of a tender for the third stage of its Halkalı West project in Istanbul on Oct. 21, the company said in a filing on Oct. 14.
The tender, for land in Halkalı in the Küçükçekmece district on Istanbul’s European side, is scheduled for 11 a.m. and will be carried out under a cooperation protocol between Emlak Konut and TOKİ, according to the disclosure on the Public Disclosure Platform (KAP). The company did not disclose the size of the plot or estimated values in the summary.
How the revenue-sharing model works
Much of Emlak Konut’s development is done through a model known as "land sale in return for revenue sharing." The company provides the land and a private contractor designs, builds and sells the project. Bidders compete on the total sales revenue they promise the project will generate and on the share of that revenue they will hand to Emlak Konut. Offers are collected in a first session, and the leading bidders can improve them in a second session.
The model allows Emlak Konut to earn a guaranteed minimum from projects while shifting construction risk to contractors. Many of Istanbul’s large branded residential complexes built over the past two decades were developed this way, and homes in these projects are open to foreign buyers.
Recent tenders
The Halkalı filing follows another major tender earlier this month. In the second session of its Ümraniye İnkılap second-stage tender, held on Oct. 2 with satellite operator Türksat under a separate cooperation protocol, the highest bid promised total sales revenue of 46.17 billion lira, with 40% going to Emlak Konut, or about 18.47 billion lira, according to the company’s disclosure. That plot covers 51,625 square meters zoned for commercial and residential use.
Emlak Konut is also offering payment campaigns on completed stock. On Oct. 14 it advertised terms for ready-to-move-in flats at its Ebruli Kayaşehir project in Başakşehir, including installment plans of up to 60 months.
Why it matters
Halkalı is a fast-developing area near major rail links, including the Marmaray commuter line, which runs under the Bosphorus to Gebze, and is close to Istanbul’s northwestern growth corridor around the new airport. Emlak Konut tenders are watched as a barometer of developer appetite: strong bids suggest builders still expect demand for new homes despite high borrowing costs, which have weighed on Türkiye’s housing market this year.
Sources
- Emlak Konut GYO (EKGYO) Halkalı Batı 3. Etap ihalesinin 1. oturumunu 21 Ekim’de yapacak (Borsatek)
- Emlak Konut GYO Ümraniye İnkılap ihalesine 46 milyar 171 bin TL’lik teklif! (Emlakkulisi)
- Emlak Konut, Halkalı Batı 3. Etap İhale İlanını KAP’a Bildirdi (EmlakDream)
Photo: Mehmet Cankaya / CC BY-SA 3.0, via Wikimedia Commons
