Chairman of Maher Holding Insurance Group Ahmet Yaşar and MHR GYO General Manager Nurkan Kaçmaz announced that building completion insurance will come to the fore in urban transformation projects.

Chairman of Maher Holding Insurance Group Ahmet Yaşar and MHR GYO General Manager Nurkan Kaçmaz explained urban transformation and building completion insurance in a program broadcast on a TV channel.

Ahmet Yaşar, Maher Holding Insurance Group, stated that they have an unusual structure in the field of finance in the journey they started with Quick Sigorta and said, "In our day, we are actually creating a structure that can be a model for Turkey. We are interested in urban transformation and real estate projects with the fund-raising capacity of our insurance companies and our financial ecosystem. We need a real estate investment trust company and the projects it will develop to use instruments such as building completion insurance together".

MHR GYO, THE FIRST INSURANCE COMPANY SUBSIDIARY REIT

MHR GYO General Manager Nurkan Kaçmaz stated that MHR GYO is the first REIT to have an insurance company subsidiary and said, “It is our advantage to have the support of insurance companies behind us. We greatly care about this. Because building completion insurance is important. We will actively use building completion insurance to eliminate the company-based problems experienced in urban transformation in the past. 39 REIT companies are traded on the stock exchange. We aspire to be the 40^th after them. We started our Capital Markets Board and stock exchange processes. We are currently in the approval phase. REITs may not carry out construction, but only can develop projects. Our project-based works continue in order for us to become an active REIT. We will develop urban transformation projects. Because we also see urban transformation as an area of social responsibility. We will carry out projects that meet the need for people to live in strong and solid buildings, especially after earthquakes. In our day, people want to live in strong buildings. Urban transformation projects need to be actively used, especially for the next five years. As a company that wants to take part in urban transformation projects, we think that the public will also prioritise this. Because the support of the state is needed”.

ALL RISKS MUST BE ELIMINATED

Ahmet Yaşar, the Chairman of Maher Holding Insurance Group said, "In case of the public offering MHR GYO, projects, especially urban transformation, will be developed with both the capital invested by our insurance companies and the funds to be obtained after the public offering of the REIT. We need to eliminate any risks regarding the delivery of these projects to those who want to own a house. One of the most important instruments for this is building completion insurance. “So far, building completion insurance has been used in nearly 100 houses and the beneficiaries have received their houses. Therefore, it is not difficult for this to evolve into 1000s or 10,000s. Together with MHR GYO, we will be paving the way for supporting these projects", and added: "Building completion must not be considered separately from insurance. When building completion insurance is engaged, preventive insurance comes to the fore as well as using the risk-compensating structure of insurance.  If the insurer gives building completion insurance there by examining thoroughly whether the ground surveys of these projects are correct, whether it is an appropriate project, and even if everything is appropriate, whether that project is a profitable and sustainable project for the contractor in terms of its financial results, the  buyers of the buildings will also feel comfortable. Therefore, a person who will buy a house has only one thing to do. That is to say, 'Hey, give me a place in a project that has building completion insurance". Stating that some legislative deficiencies in this regard are about to be completed, Yaşar said, "The Ministry of Environment and Urbanisation has a request for regulation regarding general conditions and also wants a standard building completion guarantee bond to be published. At the same time, they want this to be announced by SEDDK with a communiqué.  These studies have been completed together with the Ministry of Environment and Urbanisation, Turkish Insurance Association and SEDDK. We expect it to be published in a short time and the obstacles to building completion insurance to be removed."