Investment Management - Identifying Investment Opportunities In Turkey
Turkey is a wonderful place to visit - a vibrant country steeped in history and culture with fabulous beaches, delicious cuisine and warm hospitality.
Turkey is also a key geo-political country and emerging economy. The country has witnessed strong economic growth over the past 15 years with new infrastructure, trade and energy projects transforming the country. Turkey’s population has doubled over the past 40 years to 78 million. It will soon overtake Germany as the second most populous country in Europe behind Russia. Turkey has a young, qualified and competitive workforce. The average age in Turkey is just 30. These demographics would be very welcome in the Eurozone and Turkey’s EU membership talks continue.
The country however still depends on foreign capital inflow to fund this growth. The Turkish economy can be sensitive to moves in global financial markets, currencies and commodity prices. There has been a noticeable depreciation in the Turkish lira over the past 5 years.
Whitehaven Group aims to make investing in Turkey simple and easy. We provide investment solutions for our clients across multiple asset classes including savings accounts, financial markets, real estate and project finance.
There are many investment opportunities in Turkey. At Whitehaven Group we are in a position to help you. The founder of Whitehaven Group, Mark Sandwith, worked in investment banking for 18 years. Mark worked for Citigroup and Morgan Stanley in London, and Dubai Holding in the Gulf, managing investments across emerging market countries. He was one of the most prominent investors in the Turkish stock market. Mark has been involved in real estate, construction and tourism projects in Turkey for the past 12 years and lives here in Turkey.
Bank Savings Accounts & Bonds
Base interest rates and inflation rates in the developed world are now close to zero and likely to remain so for some time. This is good news if you have a mortgage but not for those with savings in the bank. The base interest rate in Turkey is currently 7.5% (as of Nov 2015) and the inflation rate is 7-8%. This is great news for savers. Bank deposit rates in turkish lira are 12%. Turkish banks can offer 1 year bonds yielding 12-14%. The key to having a savings account in Turkey is to convert British pounds, euros, or US dollars to Turkish lira at the right time. There is no point receiving 12% interest if you end up losing 30% in the exchange rate. A gradual exchange of ‘hard’ currency into Turkish lira over time and put on high interest savings accounts should generate good returns. We will advise you of the best time to convert into Turkish lira and which banks offer the most attractive rates.
Property and Land Investments
Whitehaven Group offers several types of real estate investment including off plan villas and apartments, renovation projects and land acquisition. Investors can either take the full project themselves or partially invest. Whitehaven will manage each investment from acquisition to construction to sale.
If investors do not want to directly own a property investment then they can participate in a project as a financier. The client will be the lender and Whitehaven Group the borrower. Term time is normally 1 to 3 years and denominated in either euros or british pounds. Annual loan rates are normally between 5 and 6%. The finance agreement will be made specific to the project with pre-agreed collateral in place.