INVESTMENT OPPORTUNITIES IN ISTANBUL

LIVE AND INVEST OVERSEAS IN PORTUGAL CONFERENCE 6-8 JULY 2016

Evren Erem – UNIVERSAL21Website: www.universal21.com

E-mail: evren@universal21.com & info@universal21.comTel: 00447847165145 - 00442081448849

2

• The world's 15th largest GDP-PPP and 17th largest nominal GDP• The European Union - Turkey have Customs Union, since1996 obtain exactly same trade rule

as being member of EU• The real GDP growth rate from 2002 to 2007 averaged 6.8% annually, - in 2013 GDP at 5%!• One of the fastest growing economies in the world• Capitalizing on its economic policies, the investment environment in Turkey has become

increasingly more welcoming to foreign investors.• Population of 76mln people (TurkStat 2012)• Half the population under the age 30.1 (Eurostat) and with half of the population under the age

of 30, domestic demand trends are expected to be strong. • Young, dynamic, well-educated and multi-cultural population• Corporate Income Tax reduced from 33% to 20%• 33.3 million foreign visitors arrived in Turkey (2012)• The sixth most-popular tourism destination in the world • Tourism contributed $23 billion to Turkey's revenues• R&D and Innovation Support Law• Residence permit with property purchase no limits

Why Turkey?

Why Istanbul? • The largest city in Turkey - country's economic, cultural, and historical heart. • Population of 14.6 million - 2nd of the largest urban agglomerations in Europe;• Turkey’s population in 2023 is expected to reach more than 84 million people and

Istanbul will be home to almost 20% of them• Transcontinental city, straddling the Bosphorus-one of the world's busiest

waterways-in north-western Turkey, between the Sea of Marmara and the Black Sea.

• 10.4 million Foreign tourists arrived in Istanbul in 2013, an increase of 11.7% compared to 2012.

• According to Mastercard's Global Destination Cities Index, Istanbul is the 6th most visited city in 2013 and it is estimated to climb up to the 3rd position in 2016.

• “Istanbul is building its position as one of the continent’s megacities, with the fastest-growing economy of any major city in Europe. The city’s Grade A office stock is set to grow by over 57% during the next three years” (JLL – Global300, The New Commercial Geography of Cities, 2015)

• European Capital of Culture, making the city the world's fifth-most-popular tourist destination

• 46 Universities

3

• Symbol of ‘New Istanbul’ • Great increase of popularity - hot spot for residential and commercial investments.• Metrobus extended to Beylikdüzü in 2012- affected by the second wave of migration.

With the advance of Metrobüs the perception of "distance" has changed! It reduced.• Welcoming atmosphere for the newcomers. Hot SPOT for rental and property

purchasing.• Beylikdüzü and the surrounding districts have the highest rapid increase in the land and

property values in Turkey, making its investors richer in a very short time.• The current subway will be extended to Beylikduzu in 2017.• 26% of residents have a university degree (A survey by the municipal council)• Good infrastructure, seeing the construction of new luxury developments - Attracting

the upper-middle class• The proposed New Istanbul Canal and the World’s Largest Airport in Istanbul will

generate a massive requirement for new property and double the local population by 2023. There are projected new motorways, rail links, metro links, marinas, villa projects and a whole skyscraper city to be built within these major projects. Substantial funding is already in place to make this a reality.

• There are 641 on-going project run by the local Council: (http://www.641proje.com)

4

Why Beylikduzu?

Why Universal21?

• Top Independent Property Investment and Rental Management Company based in

Istanbul

• Board Consist Anglo-Turkish directors

• On the market for 8 years

• Sold 5000 units

• Currently under management 350 units

• Services related to Property Management

• Sales Team - Sell locally

• Young - dynamic - creative team

• Key Ready Apartments

• DELUXE Furniture and Electrical Pack included in the price

• Rent Guarantee

• Offices located on each project

Investment Opportunities in Istanbul

• In terms of Capital Growth Istanbul is number 1 in Europe. It is minimum 20% a year.

The Central Bank of Turkey has announced that in September 2014 the capital

growth was 22.14% compared to September 2013. According to House Price Index

prepared by the Central Bank of Turkey and published in December 2015, Istanbul is

in the zone of 20% and above in terms of Capital Growth. Global Property Guide has

recently announced that Istanbul-Turkey is globally number 1 in terms of nominal

house price with the increase from 20.17% in Q1 2015 to 27.60% in Q1 2016. There are

several other reports and statistics showing how attractive Istanbul is again in terms

of capital growth.

• The annual yield is up to 7%. Basically the investor’s return would be minimum 100%

on capital growth and 35% on rental income over 5 years. The yield is net, not gross.

• Unique exit strategy: the Capital Gain Tax in Turkey is totally NIL after 5 years.

6

Our Unique Offer and Professional Service

• Hands-free investment: We are offering 5 Years Rental Guarantee and after 5 years the investor can use our Rental Management Service (please see attached brochure). Our legal team are prepared to deal with all legal matters during the purchasing process; and they can offer you further service after sale. Our professional accountancy team can look after your financial affairs including annual income tax filing and payments at a very reasonable fee.

• Our prices include Universal21 Deluxe Furniture & Electrical pack and 5 years rental guarantee (yield is net up to 7%; for Studios it is net 6.9%). You will receive guaranteed your rental income into your bank account in Istanbul every single month regardless of the apartment being rented or vacant, in other words there is no void period. After 5 years period, if you wish you can use our rental management service.

• When we are saying ‘hands-free’ investment, we are offering our wide range of services to cover all aspects of the investment in legal and accountancy terms. Our legal team can help the investor with getting residential permit or other issues and our accountancy team can deal with the investor’s financial affairs including annual income tax return, etc. at a minimum fee. Please note that 5 Years Rental Guarantee Scheme is working in a different way from Rental Management Scheme. Under 5 Years Rental Guarantee, there is no management fee, there is no services charges as the tenants will be liable for all. There is no void period as we will guarantee on a legal agreement signed by both parties through the solicitor that the investor will get his/her monthly guaranteed rental income in his/her bank account in Istanbul every single month regardless of apartment being rented or vacant.

7

• It is very close to the Ataturk Airport (16km – 20-25 minutes), Marmara Sea (the seaside is 15 minutes away by car). It is also very close to the main highway E5 and the main metrobus station (only 1.2 km – 10 minutes on foot). The hospitals and health centres, big shopping centres (Beylikduzu is a heaven for the shoppers), universities, schools, amenities, etc. are nearby. Basically you will have everything you need, even more.

• It is an ideal project for purely investment as the prices are low (Studios are about $54,000) and the return is perfect (the NET yield for Studios, for example, is in the region of 7% a year.

• Great facilities: Swimming Pool, Sauna, Massage, Gym, Health Club, Children's Play Area, Landscaped Gardens, Basketball Court, Volleyball Court, Tennis Court, Natural Hiking Trail, Shops, 24/7 Security

• The estimated delivery date for 7th Avenue is December 2016.

7th Avenue

8

Crest Plaza

• The superbly designed Crest Plaza development consists of just two individual blocks each of 11 floors holding a total of 199 apartments. There is approx. 27,000 metres of construction on a land area of 6,000 square metres. There are 9 or 10 apartments on each floor consisting of; one, two and three bedroom types with an additional choice of duplex roof apartments. Almost all the apartments come with a balcony. The larger apartments all have en-suite bathrooms in the master bedroom and many apartments have a separate kitchen. The apartments are spacious and connected by large expansive corridors. They have the added benefit of either overlooking a newly appointed park soon to be completed and the city or looking inwards to the landscaped gardens making the development extremely attractive for residential living.

• There is a wide range of facilities including a swimming pool, Turkish bath, Steam room, Sauna, Health club, Cinema room, meeting room and a children’s playground. The development is wonderfully located in a quiet residential area. Close by are cafes, restaurants, two universities TUYAP exhibition centre and a number of shopping centres. There will a huge park just behind the project called Abdullah Gul Park (http://www.btcinsaat.com.tr/TR/abdullah-gul-park-projesi ). Crest Plaza is an unique development and one of the blocks has been already completed and the second block, i.e. Block A, will be completed by August 2016.

9