BLG Capital has completed its exit from Galataport Istanbul, a globally renowned, mixed-use commercial development that transformed 1.3 kilometers of Istanbul’s Bosphorus waterfront in Karaköy. BLG sold its interest in the project, valued overall at US$2.2 billion, to its partner Dogus Group. BLG’s expertise and execution helped to deliver one the world’s most impressive travel and destination experiences, as well as achieved appreciable investment returns on the LEED Platinum project, which saw the creation of the world’s first underwater cruise ship terminal, one of the world’s top-rated hotels, and the Renzo Piano-designed Istanbul Modern, among many others.
The partnership between BLG and Dogus won the bid for Galataport in 2013 and developed the game- changing, multi-faceted commercial and travel project, with operations launching in October 2021. The project includes more than one million square feet of land with more than five million square feet of development that comprises high-street retail, class-A offices, the only cruise port terminal in Istanbul, the Peninsula Istanbul Hotel, and two major contemporary art museums: Istanbul Museum of Modern Art and Mimar Sinan University Istanbul Museum of Painting and Sculpture. The highly sustainable project also involves a true engineering feat in the creation of an esplanade that transforms into a temporary customs barrier and entry into the underwater terminal when ships arrive.
“Galataport was a landmark project for our firm but, more importantly, it is a project that continues to demonstrate the ingenuity of the Turkish real estate and development industry and the strength of its investment market,” said Serdar Bilgili, Chairmain, BLG Capital. “This is a project full of firsts and superlatives, and it is the result of a highly productive collaboration with Dogus, the city of Istanbul, and our operators and tenants. We are also proud to have built substantial returns for our investors while still delivering on uncompromisingly elevated experience across the full footprint of the Galataport.”
Before the completion of Galataport Istanbul, the Karaköy shoreline had been closed to public access for nearly two centuries. It is now one of the premiere walkways in the city, offering stunning views of the cityscape and the Bosphorus. Galataport ultimately expects to attract over 25 million visitors per year, including seven million tourists from abroad, while welcoming approximately 1.5 million cruise liner passengers annually. The development also features 230 food and beverage and retail stores from a wide selection of Turkish and international brands, as well as 43,000 leasable square meters of office space.
Several historic buildings on site were preserved and restored for the project, including the Parcel Post Office, the oldest structure on the pier. Three other buildings—the Merkez Han, Karaköy Passenger Terminal, and Çinili Han—underwent restorations to serve as the basis of the Peninsula Istanbul hotel. It is just the second Peninsula-branded hotel in Europe, showcasing both vibrant Turkish culture and superlative hospitality, spanning more than 460,000 square feet of development, including 177 rooms, various food and beverage outlets, an outdoor pool, spa, gym, ballroom, and retail areas. The hotel’s rooftop restaurant Gallada is run by two-Michelin star-awarded Turkish chef Fatih Tutak and the hotel has been lauded as one of the best new hotels in the world by a multitude of publications and organizations, including being named the top European City hotel by Travel + Leisure’s 2024 World’s Best Awards.
