German firm ‘eyes buying two Turkish construction giants seized by state fund’
Jale Özgentürk - ISTANBUL
A German company is interested in buying two real estate developers that were seized by a Turkish state fund over their alleged ties to the movement of U.S.-based Islamic preacher Fethullah Gülen, according to the head of the fund.
Saving Deposit and Insurance Fund (TMSF) President Muhiddin Gülal said a confidentiality agreement has been clinched with the German company, which wants to buy Dumankaya and Fi Yapı in a bid to enter the Turkish market.
Some 985 companies are currently controlled by the fund after being seized over alleged links to what the authorities call the Fethullahist Terror Organization (FETÖ) following the July 2016 coup attempt. These companies, which are run by trustee councils, have assets worth nearly 50 billion Turkish Liras ($12.7 billion) and employ nearly 48,000 people.
Gülal said nearly 4,000 people are still waiting for the completion of their properties by Dumankaya and Fi Yapı.
He added that a German company is “seriously interested” in acquiring these two companies, without giving further details.
“The top company management believes the resolution of the problems affecting thousands of people will enable the company to make a prestigious entrance to Turkey … We are at a good point in our negotiations,” Gülal said.
Dumankaya and Fi Yapı reportedly need 200 million Turkish Liras ($50.7 million) each to meet all their current responsibilities to their customers. Gülal said Fi Yapı has the assets to meet this amount, including a large amount of land in Turkey’s Aegean region with the license of a touristic facility.
“The assets of Dumankaya can close only half of this amount. We will work on this with the German group,” he said, adding that the main priority would be to submit properties to the rights holders.