(Bloomberg) -- Turkish private equity firm BLG Capital is seizing on renewed international investment interest amid the government’s return to orthodox economic policies, with plans to raise as much as €250 million ($265.7 million) for a fund targeting luxury real estate projects in the country.
The fund, targeting institutional investors mostly in the US and some in Europe, would invest in high-end residential and hospitality projects, CEO Sinan Temo said in an interview in Istanbul.
It would be BLG’s first Turkey-specific fund since 2015, when political instability, followed by geopolitical tensions and President Recep Tayyip Erdogan’s growth-at-all-costs policies, started driving foreign investors away.
With the President now backing a new Wall Street-friendly economic team, investors are turning their attention to Turkey again.
“The return to orthodoxy is one of the main factors” behind the timing of BLG’s plan, Temo said. “This will stabilize the economy, the exchange rates and inflation.” He also cited an improvement in relations with the US and EU.
BLG’s previous Turkey funds have backed projects including a $1.52 billion Istanbul port redevelopment called Galataport and the conversion of the former US consulate into the local branch of members club Soho House & Co Inc.
©2023 Bloomberg L.P.