This transaction gives Abraaj substantial ownership of two exceptional quality assets. The properties are situated in Ortakoy and Buyucekmece, both strong catchment areas for students, young professionals and apartment hotel guests in Istanbul. The properties are designed, built and operated to the highest standard and provide a host of amenities and services including cafes, restaurants, pool, gym, study and games room, which combine to create a desirable new living experience for students and young people in Istanbul.
Abraaj will invest alongside leading Turkish institutional investor BLG Capital, the developer of Republika Academic Apartments. Abraaj and BLG Capital will seek to capitalize on the under supply of institutional quality student accommodation and strong demand for higher education due to Turkey’s young and growing population and increasing household income.
The acquisition will be made by The Abraaj Group’s income generating Fund, which provides stable quarterly returns by investing in real estate across the Middle East, North Africa and Turkey region.
Commenting on the investment, Selcuk Yorgancioglu, Partner and Regional Head of Central Asia and Turkey at The Abraaj Group said, “I am delighted that Abraaj’s on-the-ground presence and strong local connections in Turkey have enabled us to identify and acquire a substantial stake in Republika. Our position as a trusted and valued investor in growth markets has resulted in a mutually beneficial partnership with a respected institutional player.”
Serdar Bilgili, Chairman and CEO of BLG Capital said, “We are very excited about our partnership with one of the most reputable global investors in the private equity business, and look forward to developing our portfolio further via additional investments in the student accommodation sector. The transaction marks an important strategic partnership to further grow the vibrant Republika brand in the rapidly growing student accommodation market of Turkey.”