KANAL ISTANBUL HAS A VERY COMPETITIVE PRICING STRUCTURE

  • 3% one-time administration / entrance fee.

  • Minimum investment size is €100.000 (above the 3% administration costs).

  • Management fee 0,8% + 0,15% overall costs (compare this to 2.0% for Private Equity which is the one of the few asset classes that also claims 10%+ returns).

  • Fees charges on assets managed (Private Equity charges on assets committed which generates negative returns in year 0-3 most of the time).

  • Performance Fee 15% (Private Equity 20%).

  • Hurdle 10% (Private Equity often single digit).

KANAL ISTANBUL HAS MORE ATTRACTIVE FEATURES THAN MOST PE FUND

  • The return potential of KANAL ISTANBUL is not only comparable to most high performing Private Equity and hedge funds, but it likely surpasses them.

  • Maturity estimated at 5 years (Private Equity more than 10 years).

  • Currency risk is on average reversed since our options are in TRY whilst the lira has a tendency to depreciate.

pricing chart

REAL ESTATE: BEST ASSET CLASS IN TERMS OF RETURN PER UNIT OF RISK

  • In a study performed by Jorda et al (2017, Bundesbank) it was shown that per unit of risk houses performed two times better than equities.

  • This holds true for all 14 countries that were investigated.

  • It has also been consistent over different time periods (total period of investigation 1870-2015).

REAL ESTATE: BIGGEST UNDER-OWNED ASSET CLASS BY INSTITUTIONAL INVESTORS

  • The average Real Estate allocation is around 10%.

  • If we divide the real estate value by the total asset value in the world the figure is closer to 40%.

  • This suggests there is a lot of room to grant additional allocations to real estate.

asset chart

BEST AREAS TO BENEFIT FROM CONVERSION ARE HIGHES GROWING MEGACITIES

  • In large high growth areas authorities are more pressured to arrange the development rights which reduces conversion time and boosts returns (IRR).

  • Moreover, in large scale and high growth areas demand for development plots tends to be disproportionately higher driving up prices.

ANOTHER MAJOR FACTOR IS SUPPLY DEMAND BALANCE

  • Even in high growth areas returns can be disappointing if too much money hunts for the same opportunities.

  • Development in Chinese cities have suffered from this phenomenon.

  • In Istanbul the balance is the reverse: too much demand hunting for limited supply of developments.

ISTANBUL CHECKS ALL BOXES

  • Istanbul is the fastest growing city in Europe and the third fastest in the world.

  • The supply demand ratio is extremely favourable since Western investors largely ignore the country due to political reasons.

true location

TEAM COMPOSITION

  • The best investment teams have experienced several market cycles.

  • Second important feature of high performing investment teams is a clear governance and an effective separation of duties.

KANAL ISTANBUL TEAM CHECKS ALL BOXES

  • All team members have 20+ years of experience and have steered through several major market up or down-cycles

  • The sourcing, the analysis of the plots, and the final investment decision, as well as the monitoring are all made by separate team members

rightteam kanal istanbul