Rent-seeking sales show no signs of slowing: New privatization decisions in Ankara and Istanbul

Unable to find funding from abroad, the government is once again turning to valuable plots of land and real estate in city centers. President Tayyip Erdoğan has included a significant 132,000-square-meter plot of land in Ankara's Çankaya district, which had been held for a long time for the construction of a Ministry of Foreign Affairs building, in the privatization program. According to the Presidential Decree published in the Official Gazette, it was stated that the land, which is located opposite the MHP headquarters and consists of two separate parcels, will be privatized through sales, leasing, revenue-sharing models, and other appropriate transactions.

CHANGES IN THE PRIVATIZATION PROCESS

According to the report by Erdoğan Süzer from Sözcü; it has been decided that the privatization process for the land in the Karakusunlar neighborhood of Çankaya, which includes the Ministry of Foreign Affairs' archive building, will be completed by the end of 2027 at the latest. The revenue generated from the privatization of the land, after deducting expenses, will be transferred to an account to be opened at the Treasury on behalf of the Ministry of Foreign Affairs to meet the ministry's need for new service buildings. The decision to sell land intended for a public building points to a cash crunch. The land to be privatized consists of two separate parcels covering 114.5 and 18 decares. While the smaller parcel contains the Foreign Ministry's archive building, the larger parcel contains trees. In the zoning plan for the land, the floor area ratio (FAR) is set at 1.75 and the building height at 10 stories. However, it was noted that it is expected that the building height and FAR will be changed during the privatization process in a way that increases the rent value.

VALUABLE LANDS IN ISTANBUL UP FOR SALE

While the government is preparing for the privatization of many public assets, former CHP deputy Gürsel Tekin stated that action has been taken to sell highly valuable plots of land located in 17 districts of Istanbul. Tekin noted that the lands are located in the Silivri, Sarıyer, Eyüpsultan, Çatalca, Esenler, Kağıthane, Küçükçekmece, Büyükçekmece, Ümraniye, Maltepe, Tuzla, Kartal, Beylikdüzü, Sancaktepe, Şile, Beykoz, and Eyüp districts of Istanbul. Additionally, information was provided that the Ministry of Transport has also put a 9-decare olive grove in Urla up for sale.

News Source: 12punto