Kiler Family gained extensive experience in construction operations initiated with real estate development and construction services required by its group companies and particularly in key matters such as determining the right locations in Turkey, land and property acquisition, store rentals, projects, decorations and management of the permission procedures for developing a store network and putting into service as one of the most important elements of the retailing business. Construction operations have been taken beyond the requirements of the group upon founding Biskon Yapi and they have been converted into professional construction operations.
So far, 150,000 square meter construction and more than 170 stores have been completed throughout Turkey including fine works, electrical, mechanical, heating, lighting installations and infrastructure works and the stores have been developed as turnkey projects.
The experience gained by Kiler Group with supermarket store construction and refurbishment works also meant great experience in specifications sought in rental commercial real estate properties and the relevant needs and this experience has been used for market and shopping centre investments. In addition, housing projects have been developed at various locations for different income groups.
Kiler Group proved its success in real estate development area, too, by completing the construction of Istanbul Sapphire Residence and Shopping Mall that is the highest (261m), the most challenging and elite project of Turkey and the West Europe representing the ultimate point achieved in real estate investment and development area, accommodating many ground breaking, state-of-the-art innovations in architecture and engineering.
Start of the real estate development and construction operations date back to 1994 and the progress has been achieved as provided below.
→ In 1994, store furnishing operations have been initiated throughout Istanbul. Up till the present day, project management services have been provided to 175 stores each with an area varying between 1,000 and 4,000 m² throughout Turkey.
→ In 1997, a store and business complex with a total construction area of 12,100 m² has been completed in Sirinevler.
→ In 1997, a residential building with a total construction area of 2,000 m² has been built in Avcilar.
→ The first building construction has been completed in Gungoren in 1998. The building with a construction area of 35,000 m² on 7,000 m² land has been developed as a warehouse, management offices and school building.
→ A building with a total area of 13,000 m² has been built on 7,500 m² land in Bagcilar Atestugla in August 2001.
→ In 2001, a residence building with 30 apartment flats have been built in Beylikduzu district.
→ A store with an area of 5,000 m² has been built on 6,000 m² land in Basaksehir in 2002.
→ In 2002, a residential building with a construction area of 5,500 m², consisting of 2 blocks and 4 flats has been built in Florya.
→ In 2004, Kardelen Evler Building Complex consisting of 2 blocks and 9,000 m² business centre have been completed as a project with 31,000 m² construction area on 7,000 m² land in Esenkent.
→ Kiler Logistics Centre for which the construction works commenced in July 2005 has been opened as a functional premise at the end of the 3-year period. Logistics and warehousing services are provided in this premise situated on an area of 83,560 m².
→ Istanbul Sapphire, one of the most prestigious projects of Turkey for which the construction works commenced in 2006, has a construction area of 165,139 m² and it is the highest building of Turkey and West Europe with a height of 261 metres.
→ The foundations were laid for Hikmet Kiler Science High School in July 2007 and the school has been opened in August 2008. It has been built on an area of 15.000 m². The project consists of two buildings- education building and dormitory building.
→ Cinar Evler Residential Complex Project commenced in 2008 consists of 5 blocks with 9 and 10 floors. Cinar Evler built on a land with a total area of 11,000 m² has a construction area of40.000 m².
Although construction operations of Kiler Group started in 1994, these operations were carried out by the retailing subsidiary until the year 2000 and in 2000, the construction operations have been gathered under the umbrella of a single company named KLR Insaat Ticaret Limited Sirketi ("KLR Insaat). The Company that laid the foundations of the Real Estate Investment Company was founded with the name " Kiler Insaat Sanayi ve Ticaret A.S." , registered by Istanbul Trade Registry Office with the registration number 563609-51191 on 01.09.2005 and this registration was announced in TTRG No. 6383 of 06.09.2005. Subsequently, the Company name was changed to "Biskon Insaat A.S." in 2006 and then to "Biskon Yapi A.S.". Pursuant to the provisions of CML, the company was converted into a REIC with the CMB`s resolution no. 4/174 of 08.02.2008 and its name has been changed as "Kiler Gayrimenkul Yatirim Ortakligi A.S.".
Registered equity ceiling of the company is 1,400,000,000 TL and its paid capital is 124,000,000 TL.
Principal business activity of the company is specified under article 5 " Objective and Principal Business Activity of the Company" in Articles of Association as follows.
The company is a publicly-held corporation that was founded with registered capital in order to invest in real estate properties, real estate property based capital market instruments, real estate projects and real estate property based rights pursuant to the objectives and businesses written in the regulations of the Capital Market Board on Real Estate Investment Companies.
Kiler REIC carries out successful projects and achieves successful results with its vast experience in all stages of the investment and development operations in different real estate property categories including locating and acquiring the right lands, designing favourable living spaces through optimal utilization analysis, project funding, public improvements, obtaining construction and occupancy permits, control of the building operations and management of the sales, marketing and renting operations. In addition to the development operations, the company provides property management and portfolio management services addressed at end users and manages the visitor traffic, occupancy rates and maximization of the sale and rent revenues upon realization of the projects.
The experience and knowledge of the Company with various real estate property categories throughout Turkey give the ability to interpret development, transformation and renewal trends in the cities, demographic tendencies and expectations and preferences of the potential customers in the right way and allows it to select the right development projects and acquired the required lands.
Well-established relationships with the local municipalities, contractors, sellers as well as all stakeholders and end-users in the sector that are based on mutual trust provide a substantial advantage against the competitors.
In addition to land acquisition, Kiler REIC is a favoured company in project development based on flat for land or revenue sharing models, too.
Project development process involves right analysis of the expectations and demands of the end-users that is followed by locating the right land and determining the investment opportunities, financing and project design as well as construction management. Building opportunities are carried out in accordance with the investment performance criteria such as the recommended project scale, type and combination, development conditions, social and economic indicators, development program, financing costs, sale and renting values and rate, portfolio balance and income performance. In case the results are deemed acceptable by the investor company, a comprehensive feasibility analysis is carried out.
The Company assesses each investment opportunity in details in consideration of the detailed and required analysis and appraisals based on the feasibility surveys and reports and all of the prospective new investments are subject to the approval of the Investment Committee and decision of the Board of Directors.
The Company designs the real estate property projects by using architectural concepts and designers in the global standards. The Company collaborates with internationally recognized consultants for the management and control of the design process in development projects. The Company usually contracts the leading international design and architecture companies for the preparation of the design documents including schematic drawings and development drawings. Companies with knowledge and experience on local planning, design and building rules are preferred for the detailed and as-built drawings. Recommendations of the engineers are taken into consideration on connection with the technical measures that are required to be taken for preparedness to the earthquake and experienced engineering companies are contracted for land surveys intended for the independent assessment of the ground and seismic conditions of the land.
Planning and Authorization Process
Substantial level of knowledge and experience has been gained in the course of long years in connection with the relevant legislations and the authorization and permit application and approval processes constituting an important step of the real estate development. Planning permission, license and occupancy permit procedures of all projects are usually managed and controlled by the company.
The Company finances the investment and development projects with the combination of undistributed profits, short and long-term bank loans and pre-sale and sale revenues of the housing units in the residential projects. The amount and type of the bank loans used vary based on the availability and relative cost of the bank loans on project basis, type and scale of the project, estimated construction period and estimated development cost.
In commercial projects, project financing is used for funding both land acquisition and project development and construction. The funds required for shopping mall, office, hotel and logistics projects are generated from the loans obtained from the banks or available cash resources. The company pays the loans back with the revenues generated from other real estate properties in its portfolio.
Land acquisition and first stages of the development in the housing projects are usually paid by using the guaranteed bank loans and undistributed profits. However, housing units are put up for pre-sale in order to finance the construction stage as is done by many other real estate development companies in Turkey and the funds generated from such pre-sale agreements are used.
Project financial agreements concluded by the company delay the first payment of the loans by one or two years, thus provides the Company with the time required for completing and launching the project. Project loans are usually paid back in a period of five or ten years.
Construction Project Management
It is the management of the process involving the determination of the project concept, content and scales as a result of the optimal use analysis, establishment of the coordination between the architects, consultants, engineering offices, construction companies, building audit companies, etc. operating in the design and construction stages following the development of the programs, and completion of the projects on time within the budget limits and in the quality desired.
Building and construction works are performed and managed by contractors and project management companies awarded as a result of the tenders that are also participated by Biskon Insaat in Kiler Group.
Renting and Sale
Agreements are signed by the smaller scale retailing units and food units by giving priority to selecting and retaining the major tenants including supermarkets, building materials markets and electronic stores chains. Renting department usually contacts the major tenants and collects intent letters prior to investing into the shopping mall in order to carry out a research with the purpose of assessing the tenant demands, space, architectural design, decoration needs and other conditions. Layout plans and architectural designs are revised based on the feedbacks received from the potential tenants. Mostly, agreements are signed with the majority of the tenants before the opening day of the shopping centre.
Services are procured from well-known consultancy firms in Turkey for the sale of the housing projects and sale operations are controlled by in-house managers.
After Sales Services
Customers of the housing projects in Turkey desire to achieve quality living standards upon buying the housing units and they see their homes as an important investment instrument. Buyers of the housing units usually prefer to buy housing units from the new projects of the real estate property company that establishes the satisfaction or recommend the projects of such a company to persons in their immediate environment. Based on the aforementioned awareness, Kiler REIC gives particular importance to the customer satisfaction and establishes long-lasting relationships with its customers based on mutual trust. It assists and makes life easier for end users of the commercial real estate properties by providing quality after sales services at all stages following the sale of the housing units.
Property Management Services
Property management services are provided directly for the shopping mall, housing and other real estate property projects. However, subsidiary companies or consultant contractor firms are appointed for providing the management services. Main responsibilities of the management services companies are cleaning, maintenance, security and landscaping of the common areas, waste collection services, rental services and collection of the monthly rents from the tenants.
The Company manages its properties actively by taking strategic decisions for the preparation of the annual activity plans of the operational real estate properties and asset performance assessments. It makes effort to guarantee high occupancy rates and high visitor traffic by ensuring that the tenants consist of stores popular among the public in order to maximize the trade turnover and rent revenues with the commercial real estate properties.
Kiler REIC plans to develop other project types in addition to the shopping mall and entertainment centres and housing projects in compliance with the social life styles and expectations of the people as well as offices, hotels, logistic centres and warehouses that can be supported with the current experience and relationships and are situated at advantageous locations and regions, with good transportation connections, high demand potential offering opportunities on investment return.
In addition, it actively manages the content and distribution of the real estate portfolio with the purpose of achieving a high return performance.