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BLG Capital Reaches Final Close on Turkish Real Estate Fund

BLG Capital has reached a final close on BLG Turkish Real Estate Fund LP with total commitments of 142.4 million euros ($186.1 million). The opportunistic fund is focused on hospitality, high end residential, student accommodation and mixed‐use projects.

PRESS RELEASE

BLG Capital Ltd. (“BLG”) is pleased to announce the final closing of BLG Turkish Real Estate Fund LP
with total commitments of €142,350,000. Despite the challenging market and fundraising
environment for European real estate in 2012, the vertically integrated platform amassed what is
believed to be the largest real estate fund focusing on the Turkish market since 2007.
The opportunistic fund is already significantly invested and has developed a robust pipeline of new
investment opportunities, principally focused on hospitality, high end residential, student
accommodation and mixed‐use projects. Current fund investments include the Palazzo Corpi, an
Italian‐style palace built in 1873 located in the Beyoglu section of Istanbul. Palazzo Corpi is currently
under redevelopment and will operate as a private club and luxury hotel with significant F&B
operations managed by Soho House.
To capitalize on the vastly underpenetrated student accommodation market in Istanbul, the fund
launched a student accommodation platform and management company, Republika Academic
Aparts. The fund completed redevelopment of two properties in Istanbul which are operating under
the Republika brand with approximately 1,300 beds. These properties are among the first
institutional quality products in the market. Additionally, the fund will seek to acquire a company
currently warehoused that retains the rights to operate and develop a mixed‐use project within the
Fatih Forest, a large urban forest area adjacent to Maslak, Istanbul’s most populous CBD.
The fund benefits from a diversified mix of leading institutional investors including university
endowments, charitable foundations, pension funds, insurance companies and fund‐of‐funds from
the US, Europe and the Middle East.
“We believe the successful capital raise highlights the attractiveness of the Turkish market as well as
an ability on the part of investors to capitalize on the opportunity with a local, vertically integrated
team,” said Serdar Bilgili, Principal. “We would like to thank our investors for their strong support
and we’re pleased with the quality and diversity of the limited partners, which span geographies and
investor types.”
Turkey is one of the world’s fastest growing economies, with GDP growth of 8.5% in 2011 and 9% in
2010. Growth can be attributed to the strength of Turkey’s banking sector, fiscal discipline and a
program of economic reforms over the past decade. In addition to a robust and resilient economy,
Turkey’s population of approximately 75 million is growing at an annual rate of 1.3%, with the urban
population growing 2% annually. These trends are expected to continue over the coming years with
50% of Turkey’s population under the age of 29. The property market remains highly attractive and
was ranked 2012’s top investment and development market in Europe by PwC/ULI.
MVision Private Equity Advisers acted as the global placement agent for the fund and Macfarlanes
LLP acted as legal counsel.
About BLG Capital
BLG Capital is a real estate investment management firm focused on investments in real estate
assets and companies with underlying real estate assets in Turkey and adjacent geographies. BLG
provides institutional and private investors specialized investment platforms to participate in the
rapidly growing Turkish real estate market. BLG’s principal focus is on hospitality, high end
residential, student accommodation and mixed‐use assets.
BLG’s Principals have a track record of identifying and executing off‐market real estate investments,
completing high quality, complex development and re‐development projects and active property
and asset management in Turkey that have resulted in significant value creation and international
rewards and recognition. BLG differentiates itself through its unique vision of high‐end, lifestyle
focused project design and attention to detail combined with creative real estate asset management
and significant execution capabilities.
Serdar Bilgili, Principal, BLG Capital, +90 (212) 381 2220, sbilgili@blgcapital.com
Frank RoccoGrande, Principal, BLG Capital, +90 (212) 381 2293, froccogrande@blgcapital.com
Mounir Guen, CEO, MVision Private Equity Advisers, +44 20 7409 8500, mg@mvision.com
Carrie Coulson, Director, MVision Private Equity Advisers, +1 212 792 7728, cwc@mvision.com