(Bloomberg) -- A little-known builder won the right to operate Istanbul’s Fenerbahce-Kalamis Yacht Marina, clinching an asset that had been held by one of Turkey’s biggest conglomerates for decades.
President Recep Tayyip Erdogan’s approval of the winning $505 million bid by Vahit Karaarslan was published on Sunday. Karaarslan outbid incumbent Istanbul-based Koc Holding, which had operated the marina since 1998, in a privatization auction in July. He comes from the country’s southeast and his company, Karaarslan Group, has expanded from agriculture to construction in recent years.
Under the terms of the deal, Karaarslan will manage the marina for 40 years and invest in its expansion, with the current mooring capacity of 1,508 yachts set to surpass 2,100. The site’s total area will expand by 28% to almost 440,000 square meters, according to an investor presentation.
“We’re a construction firm, so such investments aren’t difficult for us,” Karaarslan, 49, told Bloomberg by phone on Monday. Payment for the operating rights would be made “with our own equity,” he said, declining to provide details. A Koc Holding spokesman didn’t immediately comment when reached by phone.
Koc subsidiary Tek-Art, which had been operating the marina, won a previous auction in 2021 but it was canceled by Erdogan in Jan. 2022. Tek-Art had offered the lira equivalent of $285 million at the time.
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