UAE-based investment firm Abraaj Group announced the acquisition of a “significant” stake in two student accommodation assets in the Turkish city of Istanbul. The value of the stake was not disclosed.
Abraaj will invest in Republika Academic Apartments along with Turkish institutional investor BLG Capital, which is also the developer of Republika.
The transaction gives Abraaj “substantial ownership” of two properties located in Istanbul’s student areas of Ortakoy and Buyucekmece. The properties consist of 1274 beds and include amenities such as cafes, restaurants, pool, gym, study and games rooms.
The acquisition will be made by Abraaj’s income generating fund, which primarily invests in real estate across the MENA region and Turkey.
“Abraaj and BLG Capital will seek to capitalise on the under supply of institutional quality student accommodation and strong demand for higher education due to Turkey’s young and growing population and increasing household income,” a statement said.
Abraaj, which manages $7.5 billion across 25 sector and country-specific funds, is one of the fastest growing investment firms in the region and is rapidly acquiring assets across the world.
Earlier this week, the company announced a joint investment of $17.5 million in Indian healthcare chain Rainbow Hospitals along with UK-based finance body CDC.