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.
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.
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.
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