Turnkey Urban Transformation Era Begins

The "Turnkey Urban Transformation Project" developed by EKE CMC İnşaat together with the Urban Transformation and Law Platform within the framework of the support of the Ministry of Environment and Urbanization will be implemented in Istanbul under the leadership of the Istanbul Builders Association.

A new project is being initiated for the urban transformation of risky buildings with the support of the Ministry of Environment and Urbanization. To this end; The Ministry, the industry's leading non-governmental organizations and EKE CMC İnşaat came together to create a bank-oriented organizational structure in urban transformation.
The Turnkey Urban Transformation Project was introduced at the press conference held at The Marmara Hotel on Tuesday, May 12, 2015. Ministry of Environment and Urbanization, Deputy General Director of Urban Transformation and Infrastructure Hikmet Haspolatlı, President of INDER Nazmi Durbakalım, President of Urban Transformation and Law Platform Prof. Dr. At the press conference attended by Gürsel Öngören and Murat Atay, General Manager of EKE CMC İnşaat, the protocol regarding the project was signed.

Hikmet Haspolatlı, Deputy General Manager of Infrastructure and Urban Transformation, said, “With the project, the financing and coordination required for the owners to construct or have their own buildings built in the urban transformation of buildings that construction companies do not prefer to undertake because there is no zoning increase or additional floors to fall on them will be carried out with the project partners under the leadership of the bank. Wisdom haspolatli; He emphasized that the contractors will also receive their progress payments corresponding to the construction cost they have undertaken from the bank. Haspolatli ; He concluded his speech by saying that the urban transformation works, which have been implemented in our country since 2012 and include the reconstruction of approximately 6.7 million residences, will develop further with the new project.

Turnkey Urban Transformation

EKE CMC Construction General Manager Murat Atay stated that they have structured a brand new organizational process for the implementation of the project they developed with the Urban Transformation and Law Platform and continued his words as follows: We attach great importance to urban transformation in terms of providing modern, human-oriented living spaces. In this direction, we initiated the 'Turnkey Urban Transformation Project' under the auspices of the Ministry of Environment and Urbanization for the urban transformation of old and risky buildings. We came together with the industry's leading non-governmental organizations, the Urban Transformation and Law Platform and INDER, to create a bank-oriented organizational structure in urban transformation. In order to meet the construction costs of the buildings that are planned to be demolished and reconstructed within the scope of urban transformation; We created financing applications suitable for 3 models created within the scope of the project. We believe that the system will attract attention in a short time and will contribute to the achievement of reliable results that take into account the interests of all parties."

The construction company that will rebuild the building with the "Turnkey Urban Transformation Project" will receive the progress payments corresponding to the construction cost from the bank. The stages in the urban transformation process will be resolved through the project partners. The beneficiaries who want to renovate their houses will be able to receive their new apartments as a turnkey at the end of the urban transformation process. Thanks to the project, a more reliable system will be created for construction companies and beneficiaries.

Thanks to Reliable Construction Companies, Citizens' Suffering Will Be Ended

The project, developed by EKE CMC İnşaat with the support of the Ministry of Environment and Urbanization and the Urban Transformation and Law Platform, will be implemented in Istanbul, where the pilot will be implemented, under the leadership of the Istanbul Builders Association (IDER). In other cities, construction companies will be determined together with local contractor and builder associations. Thus, beneficiaries residing in old buildings will have the opportunity to receive support from EKE CMC İnşaat on the financing side and renovate their houses with İNDER contractors.

He stated that within the scope of the project, they will create a pool of reliable contractors in the districts of the pilot province of Istanbul, and they will contribute to urban transformation by acting as a regulatory professional body between flat owners and construction companies.

INDER President Nazmi Durbakalım said, "The most important concept that emerged in the construction industry after the 1999 earthquake was trust. The definitions of earthquake-resistant buildings for life safety, and contractors who fulfill their commitments for property safety and do not victimize the flat owner came to the fore. The experiences we have had in the last 16 years "We don't want people to be victimized again by those who received a bad report for the building they built or who do not have similar project experience," he said.

Organizational Structure of Urban Transformation Will Change

Considering that the zoning increase that will add floors to the existing buildings is between 10% and 20% of the cities, it is seen that a significant part of the urban transformation with the reconstruction of the buildings is "Turnkey Urban".

It is planned to be realized with the "El Transformation Project". Thanks to the financing models to be created by the Bank and the project partners, a more reliable system will be provided for the builders and flat owners during the reconstruction process.

The developer of the project, President of Urban Transformation and Law Platform, Prof. Dr. Gürsel Öngören stated that they will support the public through the information and communication network they have established, through lawyers and mediators in the reconciliation process between the flat owners, and said the following about the new system: "With the project, the organizational structure existing in the old building renovation will change. It will be carried out with the project partners under the leadership of the bank. With the project, beneficiaries who call the bank and initiate the process will enable them to buy their houses on a turnkey basis at the end of the process. Another important issue is the establishment of a reconciliation based on common interests between beneficiaries. Currently, there is no one to direct this reconciliation in buildings that the contractors do not find attractive. and beneficiaries will be led to reconciliation with the project partners under the leadership of the bank, in line with their common interests.

The Reason and Benefits of the Project...

Currently, three different models are used during urban transformation and renovation of buildings.
The first is the model, additional construction, construction of additional floors in buildings with zoning rights, by giving them to the contractor in return for the construction. In this model, all organization and financing is done by the builders.

Second model; no additional floors, the construction of buildings for which there is no right of zoning, to be built by the builders for money. Here, the financing is undertaken by the flat owners.

The third is a mixed model, in which an additional floor right in a building does not cover the cost of rebuilding the construction and the builder's profit. In such cases, some of the construction costs of the building and additional floor are financed by the owners.

With the "Turnkey Urban Transformation Project", financing and coordination support will be provided for the buildings where the second and third models are valid and which the builders do not prefer to undertake due to cost and profit concerns.

With the "Turnkey Urban Transformation Project", a brand new organization is being made that will deliver the new flat to its owner on a turnkey basis.
With the implementation of this Project, the financial burden of flat owners who cannot afford to have the building rebuilt with money will be covered by banks with long-term loans, and domestic or foreign capital will participate in urban transformation through banks.

With bank coordination and urban transformation; flat owners will cover the cost of new building construction with a long-term loan from the bank, and owners who have money will deposit their money in the bank. The bank will also pay the progress payments to the construction company every month according to the rate of building the building.