Emlak Konut GYO, the state-backed real estate investment trust that develops housing on public land, will hold the first session of a tender for a residential project in Istanbul’s 5. Levent neighbourhood on Oct. 27, the company said in a filing to the Public Disclosure Platform (KAP) reported on Oct. 20.
The session for the Eyüpsultan 5. Levent project is scheduled for 11:00 a.m. on Tuesday, Oct. 27, according to the property news site Emlakkulisi.
The plot
The land, registered as block 1044, parcel 147 in Eyüpsultan district, covers 18,574.58 square metres and is zoned for housing. With a floor area ratio (emsal) of 1.8, it allows 33,434.24 square metres of construction. The emsal is the ratio used in Turkish zoning to cap how much floor space can be built relative to the size of the plot.
Emlak Konut owns 9,434.56 square metres of the site, which it added to its portfolio on Oct. 2. The remaining 9,140.02 square metres belong to other landowners and were brought into the project under a cooperation protocol signed on June 15.
How the revenue-sharing model works
The tender uses Emlak Konut’s revenue-sharing model, known in Turkish as arsa satışı karşılığı gelir paylaşımı. Under this system the company does not build the homes itself. Instead, a private contractor wins the right to develop and sell the project and pays Emlak Konut an agreed share of the sales revenue, with bids typically competing on the total revenue and the percentage offered to the company.
Under the protocol for 5. Levent, Emlak Konut will receive all of the revenue attributable to its own share of the land, plus 25% of the revenue attributable to the other owners’ shares. The other owners’ plots will be registered in the company’s name for the development without any land price being paid.
5. Levent, on the European side north of the city centre, lies close to the Levent and Maslak business districts and has seen a series of new residential projects in recent years. The tender follows other large state-led housing auctions in the city this month, including Emlak Konut’s third stage of the Halkalı West project and the 687-home TOKİ tender in Arnavutköy. TOKİ is the Mass Housing Administration, the government agency that builds social housing and is Emlak Konut’s main shareholder.
Emlak Konut is listed on Borsa Istanbul, and its tender results are closely watched as a gauge of developer appetite for land in the city. For an overview of neighbourhoods and prices, see our guide to living in Istanbul.
Partner · Vartur
Looking for property in Türkiye?
Browse current homes, villas and land for sale in Istanbul, Antalya, Bodrum, Fethiye and other cities on Vartur, our real estate partner. Each listing shows price, size and location, and you can contact the team directly about any property.
Sources
Photo: ampersandyslexia / CC BY 2.0, via Wikimedia Commons
