Varyap envisions overseas projects

Varyap receives two awards in London at the European Property Awards event with its Meridian project. AA photo

A major Turkish property development company announced Saturday it aims to start its first property project outside Turkey in the coming five years.

The announcement from Erdinç Varlıbaş, chief executive officer of Varyap, came after Varyap's Meridian project received the International Property Awards for the best residential real estate development and the best high-rise development in Turkey in London last weekend.

"Our aim is to become a global firm, one that is internationally known. We do not want to be constrained within the borders of Turkey," said Varlıbaş in London on Saturday. "We are already getting a lot of proposals from firms overseas, but before proceeding with our expansion, we will complete our existing projects.”

At present, Varyap is constructing the largest court building in Europe – the Istanbul Hall of Justice – in the city's Çağlayan district. The building is expected to start operating in November next year. So far, approximately 70 percent of the complex is ready. Varyap also recently won, in consortium with Uzunlar, the tender to build Turkish sports club Galatasaray's new sports complex in Istanbul's Seyrantepe district, to replace the existing Ali Sami Yen Stadium located in Mecidiyeköy.

Varyap Meridian project, on the other hand, is expected to be completed in 2011. The project consists of 1,500 residential units, a five-star hotel and office, and commercial and common spaces. The complex has been designed to comply with the Leadership in Energy and Environmental Design, or LEED, criteria.

Varlıbaş said following 'green guidelines' for environmentally friendly buildings has been “a challenging, yet rewarding task.” Meridian is expected to consume 40 percent less energy and water than an average residential project through the use of solar panels and rainwater collection.

The location of Varyap's first project overseas could be Britain, said Varlıbaş. "Within five years, we could be working on a project in London as it is where property markets are most competitive, and property prices the highest in Europe," he said.

Meanwhile, Nationwide Bank reported the average house price in the United Kingdom stands at 160,159 pounds. The most expensive region in the country is London, while property prices in the north of the country rank the lowest. Scotland is currently the region with the strongest annual price change, and Northern Ireland is the weakest.

Martin Gahbauer, Nationwide's chief economist, said the third quarter saw a continued improvement in house price trends across all regions. For the United Kingdom as a whole, prices rose by 3.7 percent in the third quarter, leading to an increase in the annual rate of change from minus 11.7 percent in the second quarter to minus 3 percent. “House prices in Greater London rose by a seasonally adjusted 3.8 percent in the third quarter. This increase pushed the annual rate of change up from minus 10.2 percent to minus 1.9 percent. New buyer interest appears to have increased significantly in recent months, but the supply of property for sale continues to be very limited,” Gahbauer said