Dubai-based Abraaj Group on Thursday announced the acquisition of a significant stake in Republika Academic Apartments, consisting of two student accommodation assets totalling 1,274 beds in Turkey.
The transaction gives Abraaj substantial ownership of two exceptional quality assets, the investment firm said in a statement.
The properties are situated in Ortakoy and Buyucekmece, both strong catchment areas for students, young professionals and apartment hotel guests in Istanbul, it added without giving a value for the company’s investment.
The properties also provide a host of amenities and services including cafes, restaurants, pool, gym, study and games room.
Abraaj said it will invest alongside Turkish institutional investor BLG Capital, the developer of Republika Academic Apartments.
Abraaj and BLG Capital will seek to capitalise on the under supply of quality student accommodation and strong demand for higher education due to Turkey’s young and growing population and increasing household income.
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.”
Serdar Bilgili, chairman and CEO of BLG Capital, added: “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.”
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