1.1 – Purpose of the evaluation service.

This evaluation report has been prepared for the purpose of determining the market value of the property of which the information is given below. Market Value was defined within the framework of the International Evaluation Standards. This is the approximate price that should be paid for a property on the date of evaluation, following a proper marketing, under the conditions that will not be affected by any relationships, without any coercion, by a mutually independent willing buyer and a willing seller, in an agreement in which they act in a knowledgeable, prudent and bona fide manner.


2.1 – Deed Records

In the observations made on the real estates in İzmir Province, Balçoca district, İnciraltı street, its been seen that in the period of the last 3 years, there has been no change in records.

2.3 – Information relating to the Development Status

The following information has been obtained in the examinations made in the development directorate in İzmir/Balçova. As seen on the 1/100.000 scale development plan of İzmir Metropolitan Development Directorate, the area is mainly within the development areas spared for Health and Tourism. It's also been found out that the development plan with the scale 1/25.000 was completed by the municipality, and the plans with scales 1/5.000 and 1/1.000 were about to be approved by the Ministry of Environment and Planning... After the deduction of development readjustment share (DRS), it's been determined in the prepared plans that over the 300.000 m2 total gross area in 17 deeds, one can build 180.000 m2 aqua‐park, hotel and residence (20/80 h: 13.00).

2.4 – Investigation of the construction information and documentation

Only the existing development plans were examined.

2.5 – Opinion on the legal and current situation of the immovable property

No existing old, ruined structures and trees have been taken into consideration during the evaluation process of the immovables, only the parcel values have been assessed. AOÖ – 35415 BALÇOVA


3.1 – Definition

The immovables which are the subject of the evaluation, are various farm lands in land characteristics, with a total gross area of 300.000 m2, that are in İzmir province, Balçova district, İnciraltı street, and for the evaluation, they've only been deemed as standard lands.

3.2 – An overview of İzmir

İzmir hosts approximately 5 million people today, being the third biggest city of Turkey, residing in the Ancient Aegean borders, with its history extending 7.000 years, and even before Ancient Greece, it is a city that has been completely merged with its ten districts. It emerges as an alternative to İstanbul, which has been congested almost in all terms, and reached saturation regarding new investments, with an easier transportation alternative to European cities, and as the enlightened face of Turkey, which overlooks west, in all aspects. With free industrial zones, organized industrial areas, small industrial sites, newly completed biggest exhibition center of Turkey, already full for the following 30 weeks, newly built convention halls, with "the health theme", which İzmir adopted and made a slogan for itself regarding tourism, İzmir is expected to be a new center of tourism nowadays, even expected to be the next touristic development zone, after Antalya city. As being the marketplace of fertile plains of Aegean, with universities serving many countries in the region, coastal strips, historic areas, it craves for touristic investments, however it already manages to attract many investors to itself, while its dynamism of change still continues. Çandarlı Port, as being the largest port of Mediterranean, Çeşme and İzmir Ro‐Ro ports and Alsancak port as a frequent visiting place for passenger liners/cruisers, newly opened, modern Adnan Menderes Airport, ongoing investments in the area of thermal and health concepts, with ongoing urban renewal works, İzmir is the new star of the country, with plans and renditions that are about to burst.

3.3 – Location of the real estate

Although Balçova is a district inside the province itself, it has become a rising, elite part of İzmir. With municipal and government plans in place, infrastructure and superstructure investments have gained speed, and private sector investments and state offices and institutions gathering in this area, Balçova received an amount of investment which is way higher than the average of the city itself. It is within a short, practical 10 km distance from the centrum, with many transportation alternatives, situated in an easy to reach area. In the framework of European Union harmonization legislations, Balçova rapidly progresses in credits and urban renewal practices, it's been the most important center of the city, with universities, hospitals, thermal spas, touristic malls and similar settings, Balçova is the new hub of activity of İzmir. Thus, it gains momentum in receiving more and more investments. It is over the highway that connects to the peninsula in which summer houses, hotels, hostels, restaurants and beaches reside, and this adds a new value and a bright future to this place. Balçova is also over the cross roads that go to ancient cities like Teos, Ephesus, Pergamum, Symirna, Agora ruins and museums and touristic bazaars. The construction work for the biggest port of Mediterranean has been commenced in the city of İzmir, which became an area of industry. İzmir is right at the door of the Southern tourism with Aegean. The expectation that İzmir will be announced as the next priority regarding tourism, attracts more and more tourism investors, and makes it a sweet spot for yacht tourism, with new investments, and constructions of new marinas. With all these features that we mentioned about İzmir, it is inevitable that it is going to be the most important center of investments, in the very near future.

3.4 ‐ Transportation

As being the most prominent regions, regarding development, with coasts and beaches to swim, a historic and touristic city; İzmir can be reached through railway, new double highways in the direction of north, east, south and west axis, with 3 international ports and international Adnan Menderes Airport. In the very near future, Balçova will be reached through the sea, with the fast urban hydrofoils, but it already has a subway connection, and it is over the cross roads of the surrounding cities, which provides an advantage for transportation from nearby cities and districts.
Balçova is 10 km to the center of İzmir, and 10‐15 km to Aliağa industrial zone, and within 10 km to the ongoing construction of Çandarlı Port. It is possible to reach Aliağa, with the suburban subway line called İzban, which in the near future, will make it possible to reach Pergamom, with new extensions.
The highway of Northern İzmir ‐ İstanbul, which is under construction, is very close to the current west, south highway, and junction lands of the double highway.

3.5 – The vicinity of İzmir (location)


3.6 – Borders and Areas

When deed records and diameters of the lands in İzmir province, Balçova district, İnciraltı street are applied in the field, it's been seen that the lands are appropriate, and their parcel locations over the sketch are as follows.

3.7 ‐ Physical Characteristics

With its border to the currently being built expo area, and its development being planned regarding health and tourism, it is evident that Balçova will meet the needs with marine transportation and orbital road junctions. Facade to the sea adds a distinct feature, and its boundaries with the existing highway, physically separates the residential areas with precise lines. The area of the parcel is suitable to the planned project, and offers advantages for it.


4.1 – The features of the area which the immovable is in

4.1.1 – İzmir Province

Balçova, which is located in 38 degree North and 27 degree East coordinates of İzmir, has an area of 29 km2, and covers a coastline of 8 km. In the north, there is the city of Balıkesir, in east there is Manisa city, and in the south, there is the city of Aydın. It is built over İzmir bay.
İzmir is the third biggest city of Turkey, with an area of 12.012 km2. Its population exceeds 5 million. İzmir is the face of Turkey overlooking to the west, and is an important center with its port, farming, commerce, industry, services, education and convention centers and sea and culture tourism areas. Because of its history of 8.500 years, İzmir has a rich ancient and cultural heritage with natural beauties, which adds a whole new meaning to it all.
Located right next to the centrum of İzmir, reachable with a 10 km double road, Balçova is surrounded with Narlıdere in the west, Konak in the East, Karabağlar in the south and İzmir bay in the north.
Its known history goes back to 5th century BC. Balçova has geothermal hot springs, a forest, cable car facilities in which you can see a panoramic view of the city, and 3 universities. Because of its climate, it has diverse vegetation. The historic place of Balçova corresponds with the history of the hot springs in the city. This history goes back to 1200 BC. The writer poet Homer, writer of two of the most important epics in history, Iliad and Odyssey, lived in İzmir in the 8th century BC. Agamemnon and Menelaos that Homer mentions in his Iliad epic, are two commanders leading the Akhai army which charges for Troy. As the soldiers gained their health back and got their wounds closed in this region, facilities were built over the area where the healthy water comes out. Mediterranean climate rules over Balçova. Summers are hot and dry and winters are mild and rainy. Prevailing in the district are different plant species, depending on the Mediterranean climatic conditions and soil properties. Plant species and the natural environment which are specific for such climatic conditions consist of original Mediterranean vegetation and there also is rich marine vegetation as well.

4.1.2 ‐ Current Status of the immovable

The immovable that is evaluated is suitable for the construction of commercial, touristic Malls, residences, hotels, health, aqua parks, thermal facilities.
The land is close to the green, with trees and forests, it is surrounded with universities, hospitals, gas stations, commercial malls, colleges, hotels, residences, and the buildings are rapidly changing in which urban transformation is ongoing.

4.2 ‐ The main point formed according to the current economic indicators of the property;

Development and construction activity in the region is reflected in the market prices in line with the rules of supply and demand. In this regard, the office supplies of the city is covered by Bayraklı area, and Balçova rapidly moves towards to becoming the health, tourism, shopping center, as it is a touristic peninsula, and also the way to go for the southern region.

The Expo exhibition area that is expected to be formed in the region also increased the popularity. Balçova continues to receive investments from both Turkey and abroad, and starts to become the favorite of investors all around.

The most important and not to be overlooked subject matter is the success to bind the land of 300.000 m2 land, formed of 17 parcels, nearby the sea, overlooking to the boulevard, just like a single frame. It is inevitable to ignore, for such a project area, to see the reputation, with the distinction of being unique in this region.

4.2.1 ‐ The factors that limited and restricted the evaluation service

There is no limiting factor.

4.2.2 ‐ The factors that affect the value

Positive Factors

* Nearby recreation area next to the edge of the sea.
* It is in the area of municipal services.
* Marina and ferry port is in its field.
* Within the shopping and hotel zones.
* Geothermal water is in the title deed area.
* There is no problem of road, sewage, water, electricity and telecommunication * 1/25.000 plans have been completed
* Expo will be held in this region.

Negative Factors

* 1/1.000 development approval awaits Ministry of Environment and Urbanism approval.


In the evaluation study conducted concerning the immovables in question:
‐ Precedent comparison approach is used in the recognition of the land value.
‐ Precedent comparison approach has not been used as it wasn't based on solid criteria

5.1 ‐ The approach of Precedent Comparison

In this method, by obtaining the sales prices of the real estates that could be precedents to the property that is evaluated, a quality and quantity comparison is made regarding the property in question. The most important consideration in this method is to obtain the real sales prices of the precedent real estates.

From the real estates with similar properties, depreciation, comparisons of their usage areas, and necessary corrections for environmental and land area should be carried out, as of the date of sales. The evaluation price is reached by applying the data which is obtained as unit price or total price, to the evaluated real estate.

As there are no precedent real estate groups in the area regarding the projects that can be carried out, the comparisons are made only with sole properties with similar features, so after the examination of the sole and independent precedents around the evaluated immovable, it's been found out that the lowest unit price for the land in the region is 1.500 TRY/m2, and the highest has been determined as 5400 TRY/m2, even though it wouldn't be possible to build any touristic facility to these small properties, they've been deemed worthy of attention, just to constitute examples.

5.2 ‐ The approach of Reconstruction Cost

Because no structures were present over the properties, reconstruction cost approach could not be used, thus, for the evaluation purposes, it's been possible to only use precedent comparison method.

5.3 ‐ Default Ordinary and Extraordinary Conditions

In the evaluation of the immovables, because the data of other evaluation methods were not adequate, they can't be based on concrete criteria. Thus, for the evaluation, it's not been possible to only used the precedent comparison method. During the market research done in the vicinity, no "lands" have been found to be the equivalent of the evaluated lands, in their current development statuses. For that reason, fair values of the similar projects throughout İZMİR and property prices in the region have been researched, but only the values of the commercial lands in the area could be found. Also the fair value as land/property of the parcel priced by the information taken from Balçova District Municipality has been taken into consideration.

5.4 ‐ Most Effective and Efficient Usage Analysis

When considering the current state of development; it's been seen that after sparing the social reinforcement areas in the islands, in compliance with the minimum parcel condition, it is appropriate to use it efficiently and effectively, with maximum parcel recovery, with the portioning of a touristic facility area in an absolutely appropriate section.

5.5 – Evaluation of Data

Only the precedent comparison method was used in the evaluation of the parcels. When all these data are considered; for the parcels that are the subject of evaluation, the amount has been determined as 2400 TRY/m².

1/5.000 and 1.000 planning works on the parcels have been completed, and on the grounds that construction with tourism purposes will be allowed in the 2nd degree natural protected areas, the approval of the plans sent by the Ministry of Environment and Urban Development is expected still. Due to such shortfalls, the calculations are made on estimations.


In the process of evaluating the immovables which are the subject of the report, on site examinations, location, availability of investment opportunities born of geothermal water, transportation facilities, architectural features that will occur in the region, the quality of the designed project, infrastructure and transportation facilities, the purpose of usage of the land, the commenced economic, touristic, shopping, education, health and social related projects of Balçova and market research made in the vicinity, and also the current real estate market conditions have been taken into account and it's been found out that there is no insurmountable legal, financial problems of the property.

Based on this information, the total value of the 17 immovables which are the subject of the report as of 13.07.2015: m2 average value of 17 (seventeen) parcels on top of each other (because they are lands), has been determined as 2.400.00 TRY (two thousand and four hundred Turkish Liras).

As of the date of expedition, the location of the real estate that is asked of for a fair price, its position, popularity, its being within Balçova borders, the distance to main roads, its benefit from Municipal infrastructure services, fair prices in the area, rental income of the area, for the evaluated real estate being the biggest and most prestigious real estate of the area, the fact that the development process of the properties is about to finish, the construction area and unit sale prices in m2, its surface area and all other factors that contribute to its value, and also the economic conditions of the date, by considering the buying/selling prices of the precedent lands in the vicinity, as a result of our research and study;

Total value of the properties 720.000.000.oo TRY (Seven hundred and twenty million Turkish Liras)

Value in Euros 243.243.000.oo € (Two hundred and forty three million two hundred and forty three thousand Euros)
Value in USD 266.400.000.oo $ (Two hundred sixty six million and four hundred thousand United States dollars)


A) Planning costs:
Planning and implementation with the creation of new parcels and Application:8.000.000,00 $
B) Project costs:
a) Soil Survey Project:150.000,00 $
b) Surveying Engineering Projects and Services:550.000,00 $
c) Architectural Service Cost:3.650.000,00 $
d) Static Project Cost (Civil Engineering Project Service):1.500.000,00 $
e) Mechanics and Mechanical Engineering Project Service:2.500.000,00 $
f) Electrical Engineering Project Service Cost:2.000.000,00 $
g) Landscape Engineering Services Cost:400.000,00 $
10.750.000,00 $
C) Structural Integrity Inspection Costs:3.500.000,00 $
D) Infrastructure Construction:
Land arrangements; excavation and filling work; dirty, clean and
rainwater outlets; heating, cooling and ventilation systems; electricity68.000.000,00 $
technical infrastructure, transportation, communication,
control and camera systems; tunnel and other systems:
E) Rough Structures:
All underground and aboveground concrete and steel structures, isolation,73.000.000,00 $
bundling, waterproofing systems, ground improvements
(piling applications, injections, anchors, etc.)
F) Finishing works(Main Structures) :
All turnkey manufacturing:185.000.000,00 $
G) Special Manufacturing
Roofing systems of indoor aqua park, manufacturing and installation85.000.000,00 $
of attractions, aquariums and other small playgrounds :
Expenses that can not be foreseen and calculated30.000.000,00 $
H) Cost of land:190.000.000,00 $
TOTAL COST:653.250.000,00 $