The Istanbul Salıpazarı Port, known as Galataport, which is located in Karaköy and owned by Turkey’s Maritime Organization, will be privatized. The deadline to submit bids for the privatization of the Area, commonly known as Galataport, had ended earlier in May.
Regarding the tender which took place yesterday, PM Erdoğan had said earlier “We need to grow faster. We say we want mad projects but we are hitting our heads against a brick wall… Galataport and Haydarpaşaport projects are moving ahead”.
The tender was realized by the bargaining method and the port will be privatized for 30 years through the method of “Grant of Operation Right” within the scope of the provisions of the Law numbered 4046.
Many big Turkish and foreign conglomerates and funds were reported to show interest to participate in the bargaining, from Akfen to Limak and İÇ Holding. Global Investment Holding, which was one of the partners of the consortium which won the previously cancelled Galataport in 2005, has collected its tender specifications this time as well.
Yesterday, however it was reported that 4 joint groups took part in the tender.
Eventually, Doğuş Holding placed the highest offer for the privatization of the Istanbul Salıpazarı Port Area, commonly known as Galataport, with a $702 million bid, winning the right to operate the port area for 30 years.
Speaking to the press right after the tender, which was conducted using the bargaining method Doğuş Holding CEO Hüsnü Akhan said “The project will add to Istanbul’s brand value amid its Olympic bid”.
Alsim Alarko and the consortium of Global Yatırım Holding-Özak REIT-Delta İnşaat, the other two bidders short-listed to participate in the bargaining process, abandoned the tender even though Doğuş increased the initial amount by just $1 million from $701 million.
The Polimeks-Folkart-Sembol consortium and the Torunlar Real Estate Investment Trust (REIT) quit earlier in the elimination phase.
Doğuş Holding, owned by a local conglomerate active in several businesses including media and banking, has been interested in marina businesses both in Turkey and overseas.
After the bidding Akhan said his company forecasted an investment cost of between $350 million and $400 million for the project to include a cruise port, shopping malls and office areas. It is understood that Doğuş plans to undertake the construction in compliance with the historical architecture of the neighborhood and to complete it within three years.
The area is located in Karaköy, one of the oldest port districts in Istanbul. The Salıpazarı port, one of the top 10 ports in Europe in terms of the number of passengers, has hosted 1,160 ships and 1.71 million tourists in the past three years.
More information about the history of the tender
The Turkish Privatization Authority attempted to lease the region for 49 years in 2005, and a consortium, which was embodied by renowned (now deceased) Israeli businessman Sami Ofer and his Turkish partner Mehmet Kutman, won it after outbidding their competitors with $4.3 billion. But this auction was later nullified by the Turkish Maritime Organization (TDI), stating certain conditions had not been met. The time period of the operation right is limited from 49 years to 30 years.
The Port is located in Karaköy, one of the oldest port districts of Istanbul. The Istanbul Salıpazarı Port Area, which is originally owned by Turkey’s Maritime Organization (TDI), has up to 1,200 meters of coastline and covers an area of approximately 100,000 square meters. The Port is one of the top 10 ports in Europe in terms of the number of passengers, at 600,000 passengers annually. The current Port and its neighboring area are expected to be improved after the privatization. Construction has already been underway for the last two years on many new hotels in the area, due to high expectations about the Galataport project.
16.05.2013
SOURCE: BTT & MEDIA
