BLG applies a hands-on approach to investment management, this centers around acquiring assets at below market values, repositioning, fixing and/or enhancing assets to ensure that BLG delivers maximum returns to its investors.
BLG sees value in real estate across multiple dimensions; it can come through redevelopment or development of existing properties or lands, repositioning of existing assets with new concepts or programming, acquisitions of assets from sellers at values significantly below market values or replacement costs and/or acquisitions of corporate entities to reach underlying real estate assets at a low basis.
In every case BLG conducts significant market research & due diligence prior to investment and post investment BLG creates a detailed plan (for both development/redevelopment and operational activities) that identifies the key milestones and revenue/profit drivers to achieve the underwritten targeted returns. In addition BLG focuses on driving additional returns through efficient capital structuring, BLG believes in utilizing leverage prudently.
BLG seeks to add value to its managed investments across the following areas:
- Concept Design
BLG differentiates itself by placing design, vision, application and lifestyle at the core of every project that it invests in and develops. BLG managed project designs capitalize on leading international trends which are not yet represented or are under-represented in the Turkish market and combines those themes with the historical elements and heritage of individual properties. BLG is able to create significant value-add to its projects and achieve premium valuations over comparable projects in the market.
- Planning & Permitting
One of the largest challenges in real estate projects in Turkey is completing the proper planning and securing the necessary permits required from multiple governmental and municipal agencies when re-developing assets or constructing Greenfield projects. BLG’s Principals are widely recognized as highly experienced in dealing with these complexities and have demonstrated their ability to receive the necessary permitting across multiple real estate projects in Turkey.
- Development & Construction Management
Development and construction management is a complicated process and city center redevelopment projects are even more difficult. BLG’s Principals have extensive experience across all segments of real estate development and have successfully managed this process across multiple projects in Turkey.
BLG collaborates with Bilgili Group, an experienced real estate investment and development firm in Turkey with a large in-house development & construction management team. BLG is able to benefit from the infrastructure and services of Bilgili Group on a project by project basis. Turkey is a market where significant returns can be made through development and/or redevelopment activities, by capitalizing on its experience and these trends BLG creates significant value add for its managed investments.
- Ability to Source & Manage International Operating Partners
For projects that require active operational management, BLG’s investment professionals have been able to source, negotiate, close and successfully manage relationships with some of the leading international operating companies. BLG’s investment professionals’ successful track record of forming partnerships with these international operating companies gives BLG significant credibility when negotiating with international operators for new projects. Being able to secure these leading international operating companies as partners for its projects in Turkey creates significant value for BLG’s managed investments.
- Sales & Marketing and Property Management
BLG collaborates with Bilgili Group in the areas of sales & marketing and property management. Bilgili Group has an experienced in-house sales & marketing team that was established in 2004. The marketing team works on projects with regards to the determination of corporate identities, preparation of sales kits with creative agencies, marketing activities with PR agencies and placement of media across various channels in Turkey and internationally. The sales team is responsible for direct sales of projects and management of 3rd party sales groups that may be used on an individual project basis.
There is an in-house property management team that is responsible for active property management of Bilgili Group’s office, retail and residential properties. Collaborating directly with these integrated, established teams with strong local and international relationships provides meaningful value for the positioning, sales &marketing and property management of BLG’s managed investments.
- Extensive Local Market Relationships
BLG utilizes the significant experience and deeply entrenched, longstanding local market relationships of its Principals and investment professionals. BLG has and continues to build broad-based, substantive industry relationships with Turkish developers, conglomerates, commercial bank senior executives, advisors, agents, individual investors & property owners and corporate/institutional owners of real estate.
- Proprietary Deal Flow
BLG believes that it has a reputation for integrity, reliability, creative problem-solving and performing under limited time constraints. This reputation, built on the continuity and longevity of its relationships, is expected to continue to generate attractive off-market investment opportunities.
- Investment Discipline
BLG believes that it has a measured and disciplined approach to investment decision making, which takes into consideration broad macroeconomic trends in addition to local market and asset specific factors. BLG will not make an investment unless it has conviction that the investment has the potential of generating significant risk-adjusted returns.
- Asset & Portfolio Management
BLG’s investment professionals have extensive principal investment experience managing investments both in Turkey and internationally. BLG aggressively manages its real estate at the property level and employs rigorous financial & operational reporting systems across all its individual investments. BLG utilizes the capital markets to access the most cost effective capital available to optimize asset and portfolio risk adjusted returns. All BLG managed investments are maintained in accordance with international & industry best practices with a focus on transparency, operational involvement and timely reporting.