Kiler REIT achieves successful projects and results with its vast experience in all stages of investment and development processes of different real estate classes, including finding and purchasing the right lands, designing preferred living spaces with the best use analysis, project financing, obtaining zoning, license and occupancy permits, supervision of construction processes, and management of sales, marketing and leasing activities. In addition to its development services, the company manages the visitor traffic, occupancy rates, and maximizing sales and rental incomes in its real estates, with property management and portfolio management services for end users, once the projects are realized.
Our Company’s experience and knowledge of different types of real estate throughout Turkey provides us with the ability to accurately read the development, transformation and renewal trends of cities, demographic trends, and the expectations and preferences of potential customers, while also allowing us to identify projects suitable for development and provide the necessary lands.
Established trust-based relationships with local municipalities, contractors, vendors, as well as all stakeholders and end users in the industry provide a serious advantage over rival companies.
In addition to land purchases, Kiler REIT has become a preferred company in developing projects using flat for land or revenue sharing models.
The project development process includes correct analysis of the expectations and demands of the end users, followed by finding lands and investment opportunities in the right locations, financing, project design and construction management. Investment opportunities are carried out in accordance with investment performance criteria such as proposed project size, type and mix, zoning conditions, social and economic indicators, development program, financing costs, sales and rental prices and speed, portfolio balance and return performance. If the results comply with the company investment criteria, a comprehensive feasibility analysis is carried out.
The company examines each investment opportunity in detail based on the feasibility analysis and the reports and in the light of the analysis and evaluations deemed necessary, and any new investment to be made is subject to the approval of the Investment Committee and the decision of the Board of Directors.
The company designs real estate projects using world-class architectural concepts and designers. The management and supervision of the design process of development projects are carried out by the company in cooperation with internationally recognized consultants. The company generally engages leading international design and architecture firms to prepare design documentation, including schematic designs and development designs. For detail and construction drawings, companies that have knowledge and experience about local planning, design and construction rules are preferred. The company takes into account engineers’ advice regarding the technical measures to be taken for earthquake preparedness and works with an experienced engineering company to conduct independent assessment site surveys on the ground and seismic conditions below the site.
Many years of extensive knowledge and experience have been gained about the permit and license application and approval processes and their legislation, which are an important step in the process of real estate development. The zoning, license and occupancy processes of all projects are generally managed and supervised by the company.
The company finances real estate investment and development projects through a combination of retained earnings, short and long-term bank loans and project financing, and pre-sales and sales revenues of residential units in residential projects. The amount and type of bank financing used varies depending on the availability and relative cost of bank financing on a per-project basis, type and scope of the project, estimated construction time and estimated development cost.
Project financing is used in commercial projects to provide financing for both land purchase and project development and construction. Required financing for shopping mall, office, hotel or logistics projects is provided by loans from banks or available cash resources. The company repays the loans it uses with the revenue from other real estate projects in its portfolio.
In residential projects, the initial land purchase and initial stages of the development project are usually covered by secured bank loans and retained earnings. However, as is customary among real estate development companies in Turkey, the company usually pre-sells residential units and uses the funds from these pre-sale contracts to finance project construction.
The project financing agreements made by the Company provide a grace period of one or two years before the first loan repayments begin, which provides the Company with the necessary time to complete the project and put it into operation. Project loans are generally spread over a period of five or ten years.
It is a management process that involves determining the project concept, content and scales as a result of best use analysis; ensuring coordination between architects, consultants, engineering offices, construction companies, building inspection firms, etc. in the design and construction process following architectural projects and the program; and managing the completion of projects on time, on budget, and to the desired quality.
Production and construction works are carried out and managed through the services received from the contractors or project management companies that are chosen as a result of tenders, in which Biskon Construction, a member of Kiler Group, also participates.
Agreements are signed with tenants of smaller retail units and food units, with priority given to identifying and retaining key tenants, including supermarkets, DIY stores and electronic store chains. In order to evaluate the tenant supply and conduct a survey on the area, architectural design, decor and other conditions, the rental department usually starts negotiations with the key tenants before starting the investment of the shopping mall and receive letters of intent. Revisions are made to the layout and architectural design based on feedback from potential tenants. Generally, agreements are signed with the majority of tenants before the opening day of the shopping mall.
Services are obtained from well-known consultancy firms in Turkey for the sale of residential projects, and the Company controls the sales activities also through its own managers
While the residential customers in Turkey want to achieve a quality living standard in the houses they buy, they also see their houses as an important investment tool. House buyers tend to buy an apartment from the future projects of a real estate company that they are satisfied with, or they can recommend the projects of the company they are satisfied with to their close circle of friends and relatives. With this awareness, Kiler REIT establishes long-term and trust-based relationships with its customers by keeping customer satisfaction at the forefront. After selling the units it builds, the Company comes to the aid of the end users of the commercial real estates every step of the way and makes their life easier, with quality after-sales services.
No direct property management services are offered for shopping malls, residential or other real estate projects. However, subsidiary companies or consultant subcontractors are engaged to provide management services. The management services company’s responsibilities often include cleaning, maintaining, securing and landscaping common areas, garbage collection, new rentals and collecting monthly rents from tenants.
The Company continues to actively manage its properties by making strategic decisions for the preparation of annual activity plans for its operational properties and the evaluation of asset performances. In order to maximize the shopping turnover and rental income for its commercial real estates, the Company tries to ensure high occupancy rates and high visitor traffic by making sure that its tenants consist of stores preferred by the public for shopping.
In addition to mixed-use shopping and entertainment centers and residential projects that are suitable for social lifestyles and expectations of the public, Kiler REIT plans to develop offices, hotels, logistics and warehouses and other potential project types in the regions and locations that it can support with the help of its existing experience and relationships, that have good transport connections, for which the Company anticipates high demand, and which are in advantageous locations and offer attractive return on investment.
In addition to these, the Company actively manages the content and distribution of the real estate portfolio in order to ensure high return performance.