KUWAIT CITY, Aug 7: Al Mazaya Holding has acquired the remaining 50 percent stake of Ritim Istanbul project in Turkey, raising its share of the project to 90 percent. The deal is valued at 77 million Turkish Lira (around $25 million). On this occasion, the Group CEO of Al Mazaya Holding, Engineer Ibrahim Al Soqabi, said: “This acquisition reflects the confidence of Al Mazaya in Ritim Istanbul project; it also reflects the high potential of the project (especially as 80 percent of it has already been sold while construction is reaching 95 percent completion) and it has yielded positive returns on the company.” He added: “The deal has positive financial returns for Al Mazaya from the profits generated by the acquisition and also from consolidating the project’s balance sheet into ours — the handover of the project started in the second quarter of this year, which led to pocketing profits from this handover process.
Also, the revenue generated from leasing the retail space, which is already 60 percent leased, will yield positive financial returns for Al Mazaya and contribute to its profitability in the coming period; this will prove to be particularly true with Al Mazaya’s stake in the project reaching 90 percent, which will be incorporated into the company’s Q3 2016 balance sheets and profits once all deal procedures are finalized.” The company also stands to achieve extra profit from the acquired stake, which includes profits from possible sales of the remaining residential units and offices, and also profits from the retail complex that is currently offered for lease and already running at 60 percent capacity. Furthermore, Al Soqabi stated that Al Mazaya has protected itself from currency depreciation by ensuring leasehold retail complexes are in Euros or its equivalent in Turkish Lira. This will protect the company from any consequences that may result from the depreciation of the Turkish currency.
Ritim Istanbul is considered a large property project on 39,000 square meters of land on the Asian side of Istanbul, and contains 6 towers with presidential and offices units. There is also a retail complex spread across over 22,000 square meters of land, encompassing 1,113 residential units, 147 retail shops and 113 offices. The project also has a unique location overlooking Maltepe area, neighboring one of the most beautiful locations on the Asian side overlooking the Princess islands. The project was designed and implemented with the latest construction methods, and its high quality reflects its success. Al Soqabi concluded: “Mazaya entered the Turkish market two years ago and aimed to diversify its property investments and geographic reach in the region. In 2014, Mazaya ensured that every possible protective measure was in place before testing the new Turkish market. We are very grateful to have achieved our goal despite the geopolitical struggles in the region during the construction period. It’s great to see that the company is gaining from its investment in Ritim Istanbul project, especially after completion and the handover of units to homeowners.