Housing developer posts profit increase

Housing developer posts profit increase

ISTANBUL - Reuters
Housing developer posts profit increase

The largest real estate company in Turkey, Emlak Konut has posted 129 percent profit rise ahead of its second public offering planned for this year.

Turkey’s largest housing developer, Emlak GYO, which is planning a secondary public offering (SPO), posted 523 million Turkish Liras net profit with a 129 percent increase last year from a year earlier, according to a company statement on March 15.

Emlak GYO, which has a portfolio worth 7.6 billion liras, also raised its sales incomes to 1 billion liras with a 40 percent increase in 2012.

Public-offering soon

The company has recently announced that it was planning a 1.3 billion lira ($732 million) capital increase and an SPO to raise funds for new projects.

“We will raise our paid-in capital from 2.5 billion liras to 3.8 billion liras. We will hold a secondary public offering,” General Manager Murat Kurum said last month. “We have started the process. We will determine the allocation of foreign and local investors in the meantime.”

Emlak GYO, which builds residential properties including luxury high-rise apartments in cities across Turkey, is 75 percent owned by the Housing Development Administration of Turkey (TOKİ) and 25 percent free float. The SPO would take the free float to just over 50 percent.Turkey completed its largest-ever share sale in November, raising 4.51 billion liras through the secondary public offering of state-run lender Halkbank.