Emlak Katilim Bank developed new financing models for urban transformation

The Minister of Environment and Urbanization, the Institution, stated that Emlak Katilim Bank Inc. has developed 3 main financing models for urban transformation, including retrofitting, on-site transformation, and spatial transformation.

Environment and Urban Planning Minister Murat Kurum stated in his statement that the urban transformation mobilization continues at full speed in 81 provinces and 922 districts in line with the vision of “A Turkey Ready for Disasters”.

Drawing attention to the fact that approximately 6.7 million independent sections in Turkey are not resistant to earthquakes and 1.5 million of them must be transformed urgently, Kurum emphasized that the goal of the urban transformation campaign, which continues with the principles of voluntary and rapid transformation within the framework of this fact, is to transform 300 thousand houses every year.

Kurum announced that they have completed the transformation of 1.5 million houses in the urban transformation campaign that started in 2012 and they handed over the healthy and safe houses to the citizens. Reminding that many regulations were implemented to facilitate urban transformation in this process, Kurum stated that they paved the way for the strengthening of the buildings for which building registration certificates were obtained.

Stating that they have reduced the VAT rate from 18% to 1% in the construction contracting works that they will perform up to 1.5 times their existing buildings for the citizens who have transformed their residences in the status of risky buildings, he explained that they increased the loan amount from ₺125 thousand to ₺200 thousand and the total loan amount up to 5 flats from ₺625 thousand to ₺1 million and that they increased the building reinforcement loan from ₺50 thousand to ₺80 thousand.

Kurum stated that Turkey Emlak Katilim Bank, which has been added to the finance sector, especially in the construction and real estate sector in 2019, will be a confidence-inspiring support to the markets in urban transformation and financing, and will bring a new breath.

“Retrofitting, in-situ transformation and spatial transformation”

Stating that a new step has been added to urban transformation with Emlak Katilim Bank and financing models have been developed for urban transformation within this framework, Kurum continued as follows:

“With our Emlak Katilim Bank, we have developed 3 main financing solutions covering all parties for urban transformation. Retrofitting, in-situ transformation, and spatial transformation. According to these 3 main financing models, first of all, a contract will be signed between our citizens and the contractor company, and a license application will be made for retrofitting or construction. In the next period, our Emlak Katilim Bank will evaluate the technical data of the construction with the contractor and the contract signed between the citizen contractor, and a work completion protocol will be signed between our Bank and the contractor for the projects that are suitable.”

“There will be a guarantor role”

Kurum pointed out that the financing used by the citizens from the bank will be transferred to the contractor firm according to the progress of the construction within the scope of the work completion guarantee agreement, and made the following statement:

“With the new financing models developed by our Emlak Katilim Bank, there will be a guarantor in the contracts to be signed between citizens and contractors in both retrofitting, in-situ transformation, and spatial transformation. On the one hand, our citizens will be provided with financial aids to reduce their costs in urban transformation, and the completion of the work will be guaranteed as urban transformation loans will be made available in a controlled manner. Our citizens will be able to carry out the urban transformation process of the building in which they live safely from the beginning to the end, without experiencing any problems.”

Kurum emphasized that a dividend support of 400 base points with a maximum maturity of 120 months for reinforcement and housing loans, and 300 base points for workplaces with a maximum maturity of 84 months will be offered to citizens through the bank.

“We increase the trust between the parties”

Kurum noted the following regarding the financing solutions developed:

“We design and manage the process for both the citizen and the contractor company. We increase the trust between the parties. We take a standard approach. We minimize risks by taking responsibilities. These financing solutions we offer will both stimulate the market, facilitate the entry of new investors into the market, and protect the rights and interests of our citizens and private sector. Thus, we will build a Turkey ready for disasters in a short time with the cooperation.”

Source: AA / Translated by Irem Yildiz

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