Building firms take baby steps in green buildings

There are only 40 certified “green buildings” in Turkey and the country should focus more on this concept when renovating old buildings, according to the head of the Turkish Green Building Council.

Such buildings use between 24 percent and 50 percent less energy, cut CO2 emissions by 33 percent to 39 percent and reduce water use by 40 percent and waste by up to 70 percent, Haluk Sur told the Hürriyet Daily News on the eve of World Green Buildings week, which started yesterday.

Another 150 buildings are candidates for certification, Sur said, adding that the Building Research Establishment Environmental Assessment Method (BREEAM) of the U.K. and the Leadership in Energy and Environmental Design (LEED) of the U.S. were popular in Turkey.

“A sum of 190 buildings might seem very low, but the sector is growing fast if the acceleration in the number of certified green buildings is considered,” he said.

There are both local and foreign companies that favor constructing green buildings, he added.

Green housing market hit $50 billion in 2010

The global green housing market, which stood at $3 billion in 2005, according to McGraw-Hill figures, reached $50 billion in 2010, and the research company predicts a volume of $120 billion in 2015.

“Turkey is just at the starting point regarding green buildings,” Sur said. “But the environment is gaining importance in social responsibility projects, particularly in terms of recycling and waste.”
The organization has gained the support of the Urban Ministry and is in talks with the Energy Ministry for the foundation of a national green housing certification, according to Sur. Such a system will help certification revenues stay in the country, he said. These are the criteria for such a certification: Unified project management, plot use, water use, energy use, health and comfgfort, raw material and resource use, life in housing, management and maintenance.

The organization also looks to the Urban Ministry, state-run property developer TOKİ and related chambers and universities to contribute to the development of a national certification.

The Energy Efficiency Strategy Document published in the Official Gazette on Feb. 25, 2012, already requires sustainability criteria from buildings larger than 10,000 square meters. This week World Green Buildings Week is celebrated in 90 countries. The local organization is holding panel discussions within the scope of the week at Özyeğin University, which claims to have a green campus in Çekmeköy on the outskirts of Istanbul.

The Turkish Green Building Council will hold its second Green Buildings Summit on Feb. 18 and 19, 2013, in a bid to raise awareness about the issue.

FACTS AND FIGURES

Some 45 percent of the 19 million houses in Turkey are over 35 years old. About 10 million houses across the country are set to be renewed within the scope of the government’s urban transformation program, which entered into force earlier this month. Transforming all existing housing parks into green areas will create an economy of up to $1 trillion, Haluk Sur forecasts. This figure may go even higher due to the rise in population, urban transformation and the contribution of sub-sectors.

The country needs over 600,000 houses every year, reaching a total of 7.5 million by 2023. If only 2 or 3 percent of these houses went green, this would save water and energy worth $470 million, Sur projects. Despite the fact that environmentally-friendly buildings are more expensive to construct, the savings they make in energy would soon compensate this, he said.

Pratt & Whitney and Turkish Technic Strengthen Partnership with an Advanced CFM56 and V2500 Center of Excellence

Pratt & Whitney, a United Technologies Corp. (NYSE: UTX | PowerRating) company, and its joint venture partner, Turkish Technic, a subsidiary of Turkish Airlines (ISE: THYAO), celebrated with an official grand opening ceremony this weekend for its advanced CFM56(R) engine and V2500(R) engine overhaul facility in Istanbul, Turkey.
Positioning itself as the Center of Excellence for CFM56 and V2500 maintenance, repair and overhauls within the region, the 25,000-square-meter (269,000-square-foot) Turkish Engine Center is located adjacent to the Sabiha Gokcen International Airport in the Anatolian peninsula. The facility has the capacity to service more than 250 engines annually.
"Turkey and its surrounding region are very strategic markets for Pratt & Whitney," said Pratt & Whitney President David Hess. "The opening of the Turkish Engine Center and our expanding partnership with Turkish Technic, which has 76 years of experience in the MRO market, is a testament to our commitment to forging a stronger presence in Turkey."
"This is an exciting phase for both Turkish Technic and Pratt & Whitney," said Dr. Ismail Demir, Turkish Technic general manager and Turkish Engine Center chairman of the board. "We are extremely pleased to be embarking on this journey with Pratt & Whitney."
Designed to meet the Gold standards of the United States Green Building Council's Leadership in Energy and Environmental Design (LEED(R)) Rating System, the Turkish Engine Center is built with recycled material and uses renewable energy sources for a portion of its energy load. In addition the site is anticipated to reduce its overall water usage by 40 percent compared with conventional facility designs.
"Pratt & Whitney and Turkish Technic have strong commitments to environmental policies," said Todd Kallman, Pratt & Whitney Commercial Engines & Global Services president. "Therefore, we continuously focus on integrating operational and sustainable practices that help conserve energy while minimizing waste."
"The combined expertise and shared learning of Pratt & Whitney and Turkish Technic will ensure the success of the Turkish Engine Center," said Daniel Tennant, Turkish Engine Center general manager. "Our experienced and competent team is dedicated to deliver only first-class quality products and services to our customers in the region."
Turkish Technic is the leading maintenance service organization in its region, providing MRO services for Boeing and Airbus airframes, engines, auxiliary power units, landing gear and components. Turkish Technic serves airlines in Europe, the Middle East, Northern Africa, Turkey and the Commonwealth of Independent States, with its maintenance base in Istanbul and highly qualified workforce of more than 3,000 personnel.
In recent years, Pratt & Whitney has significantly increased business activities in Turkey: in 2005, both Alp Aviation and Kalekalip (now part of Kale Aero) were awarded manufacturing contracts for critical components of the Joint Strike Fighter's (JSF) F135. In June 2009, Pratt & Whitney and Kale Havacilik San, A.S. (Kale Aero), signed a memorandum of understanding with the intent to develop a joint venture located in Istanbul to produce aircraft engine components.
Pratt & Whitney Global Service Partners (GSP) is a total service provider for engines made by Pratt & Whitney, International Aero Engines, General Electric, Rolls-Royce and CFMI. In addition to engine overhaul and repair services, GSP provides customers with improved engine performance and increased asset value through a portfolio of services including line maintenance, engine monitoring and diagnostics, environmentally friendly on-wing water washes, leased engines, custom engine service programs, and new and repaired parts.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries.
This release includes "forward looking statements" concerning anticipated business opportunities that are subject to risks and uncertainties, including pre-conditions to a fully functioning shop that have not yet been met. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include changes in the health of the global economy and the aerospace industry. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's 10-K, 10-Q and other reports filed with the SEC.

An Urban Oasis, Certifiably Green, Grows in Istanbul

In Istanbul, the only city in the world to offer addresses on two continents, most overseas interest in real estate has focused on the historic, European side, rather than on the newer, Asian one.

That preference may change, though, thanks to a combination of government policy, population growth, demand for new earthquake-proof housing and the increasing difficulty of commuting from one side of this rapidly expanding city to the other.

Taking advantage of these needs is a major new residential and commercial development at Atasehir, on the Asian side of the city.

Five towers of the Varyap Meridian, which will echo Istanbul’s historic skyline of domes and minarets, will house 1,500 apartments and a luxury hotel; there also will be three office centers. The entire project is expected to be complete in 2012.

The development boasts the latest in green construction — covering just 10 percent of its 37-hectare, or 92-acre, site.

And strong early sales of its apartments illustrate how the city’s residential housing market is bouncing back from a decline that followed the global financial crisis.

With a booming population — there is no official count, but estimates are 13 million to 15 million — demand for housing continues to be strong because around 60 percent of all residents are younger than 30.

As the economy recovers — the government expects 3.5 percent to 5.5 percent G.D.P. growth this year. “Lower prices from the downturn are again attracting investment in the residential segment,” said Andrew Rohr, a real estate specialist with Colliers International’s Istanbul office.

And now the Turkish government is backing plans to move all the major financial institutions still in the capital city of Ankara to Istanbul’s Asian side.

“Three state banks, the central bank, the capital markets board and the banking supervisory and regulation agency have all bought their land here,” said Erdinc Varlibas, chief executive of the Turkish developer Varyap, nodding toward a muddy building site in Atasehir, a self-governing region off the main highway to Istanbul’s newest airport, Sabiha Gokcen.

With a new financial center at its core — the move still requires an act of Parliament, which the government promises this year — Atasehir looks set for takeoff.

“Around five million people live on Istanbul’s Asian side, with several million of these traveling to work on the European side every day,” said Mr. Varlibas.

“On a bad day, it can take four hours to get home in rush hour. These people don’t have to be tortured by traffic if they live and work in Atasehir,” he said.

Also, many residents of this earthquake-prone city have been looking for apartments that meet building codes introduced after the 1999 earthquake in Marmara, Turkey, that killed more than 17,000 people.

Yet, even with the advantages, Varyap decided it would take a special effort at Atasehir to attract buyers.

Its solution was to commission RMJM, an international architectural firm originally from Edinburgh, to come up with a design for the Varyap Meridian that would rewrite the rules for Istanbul’s tower blocks.

“We started out by taking the silhouette of the city,” said Chris Jones of RMJM’s Istanbul office. “You get a carpet of low rise across the seven hills, punctuated by minarets. Topkapi Palace, the seat of the Ottoman sultans, is also a very green building, naturally ventilated with shade built in and wonderful views.”

Taking all this into account, the Varyap Meridian’s curving towers use solar and wind power, and the developers have applied independent Leadership in Energy and Environmental Design certification to verify the project’s green building credentials.

For example, the glass, steel and concrete all come from within the surrounding 800 kilometers, or 500 miles, a LEED requirement.

The project’s apartments range from 54-square-meter, or 580-square-foot, studios, selling for 289,000 Turkish lira, or $195,000, to a 232-square-meter four-bedroom apartment, selling for 1.2 million lira.

The apartments are being sold in three phases: the first, being built now, is all but sold out, while 60 percent of the second phase is sold. The third phase, a 200-meter, or 655-foot, tower — expected to be the highest structure on the city’s Asian side — is not yet on the market.

“We knew we needed to do something truly iconic,” Mr. Varlibas said. Born in 1978, he represents a new generation of Turkish developers who are internationally aware and looking to meet — if not surpass — the best global design standards in residential buildings.

A change for the greener in Turkey

ISTANBUL, Turkey — From the top suites in Istanbul’s newest development in Atasehir, one can see the city’s great waterways laid out, the churning waters of the Sea of Marmara devolving into the more docile Bosporus Strait. But it’s not the views that have cast a spotlight on this project, nor their attempt to transform this suburban hillside into Istanbul’s newest financial district and business center.

What makes the Atasehir development worth talking about is that it is about to become one of the "greenest" projects in the country. The first mixed-use development in Turkey to apply the U.S.-developed LEED standards for environmentally sustainable building, Atasehir is breaking new ground amid a movement for sustainable architecture in Turkey.

“Green building in Turkey has reached an unprecedented peak,” said Duygu Erten, the founding Vice President of Green Building Association of Turkey. “Unheard of several years ago, now major commercial developments advertise an awareness of environmental issues. Malls and major office developments are engaging in green retrofit processes.”

The 340,000-square-meter (3,660-square-feet) Atasehir project was designed by international architecture company RMJM for Turkish real estate development company Varyap, and will include rainwater collection sites and facilities to optimize water usage and reduce energy consumption, wind turbine technology, cooling water pools that enhance the external landscape and a co-generation plant that will produce electricity for the development.

But before the project began, the RMJM team took a trip with their clients to the famed Topkapi Palace, home of the sultans and harems of the Ottoman Empire for over 400 years.

“You look at the Ottoman Empire and the history of the region and you see this wonderful heritage of progressive approaches to building a civilization,” said Chris Jones of RMJM’s Istanbul studios. “But at some point in the 20th century Turkey seems to have lost its way and become very generic.”

The Topkapi Palace — also built on a hillside overlooking the water — was constructed of local materials and used its abundant water resources to cool the palace through central water channels, pools and rainwater storage.

“With this project we are trying to encourage Turkey to return to its regional influences, to return to an idea of sustainability centered on one's own environment.”

The design of Atasehir uses the site’s topography, climate and surrounding context to maximize the site's natural potential and inform the landscaping.

These ideas, though central to building sustainably, are nothing new.

İstanbul’s skyscraper race: a tale of necessities and sustainable heights

As skyscrapers like the Burj Khalifa are built throughout the world to topple records and flex national and economic muscle, in the megacity of İstanbul such tall wonders are seen as necessities as its population and its finance sector grow to new heights.
The 181-meter-high İş Bankası building in İstanbul’s Levent district held the title of the tallest building in the 13-million-strong city until last year, when Sapphire of İstanbul, a 261-meter mammoth, also in Levent, clinched the title. In 2010, the $180 million 270-meter-high Diamond of İstanbul will be completed, narrowly taking the title of the tallest building in Turkey. All of these triumphant buildings, however, are tiny in comparison to the 828-meter Burj Khalifa in Dubai.

s İstanbul continues to be the economic powerhouse of Turkey, populations looking for work are migrating to the city, making it difficult and expensive for developers to build horizontally and thus redirecting their view to the skies. Real Estate Investing Partners Association (GYODER) President Turgay Tanes, speaking to Today’s Zaman, stated that “an increasing population, a lack of land in cities and the high price of available land means that there is a vertical trend in building development.”

Tanes noted, however, that along with this trend in the vertical, there is also a trend toward sustainable and environmentally friendly buildings. Calling on architects, engineers and investors not to ignore the sustainability of such tall initiatives, he said Turkey is currently obtaining more knowledge about this vital issue. “Currently there are buildings that are green certified. Investors in the sector have mostly internalized the concept of sustainability for buildings,” said Tanes. He added that building vertically can have benefits in the field of environmental impact and sustainability, as demand for private transportation and the increasingly widespread nature of public transportation is making it a necessity to have more centralized buildings and workplaces.

According to research by the organizations behind the Leadership in Energy and Environmental Design (LEED) Green Building Rating System and the Building Research Establishment Environmental Assessment Method (BREEAM), environmentally friendly buildings can decrease the operating costs of a building by 8 to 10 percent, while also shrinking energy costs by 40 percent.

Signs of recovery in the Istanbul office market (TR)

On the back of the recovery from the economic crisis, we are observing an increase in tenant demand.

In the last two years, lease transactions were at a minimum, with only a small number of tenants taking new space, mainly in the business areas of Ümraniye and Levent. In addition to the economic crisis, some of the reasons for the limited number of transactions were the high fit-out and moving costs, shortage of alternatives and long approval procedures. However, despite these challenges, and on the back of recovery, we expect to see a significant number of deals in the last half of 2010.

A number of multinational corporations have reactivated their activities, which were for the most part postponed immediately after the crisis. Mainly corporations engaged in the financial, technology, FMCG and services sectors are active in securing their new contracts. However, the motives behind the current demand are different from what was seen in the market in 2007 and 2008, where occupier interest was directed to more prestigious offices. Now in 2010, tenants are looking for A-class office space in secondary regions like Ümraniye and Kavacýk for budgetary purposes. In this regard, downsizing, optimization of space and consolidation are the main trends in the office market.

Since the beginning of 2010, the office market began to show signs of sustained activity, however tenants are still cautious entering into commitments. The completion of a transaction is more time consuming and involves more procedures than companies expect. The market transformed in the last two to three years from a landlords’ market to a tenant’s market, with expectations for greater flexibility on commercial terms and more incentives.

Supply
In addition to the low demand, there was a shortage of supply enabling rents to remain stable in the period following the global economic crisis. Many pipeline projects were postponed in 2009 in prime office districts such as Levent, Zincirlikuyu and Kozyataðý due to lack of financing. In Turkey, project pre-leasing is not a common practice, unlike most other the countries. Although the economy seems to be recovering in 2010 and the mood of the market is optimistic, a lease contract is still the pre-requisite for assuring funds and credit for investors and developers. Thus office projects will likely be neglected when compared to residential and retail projects, which provide higher short term returns.

For new projects to come online, developers require sustained low interest rates with ease of credit. Also, for developers and investors to feel more confident in the market, more transactions are needed along with decreasing vacancy rates. This would enable the realization of pipeline projects concentrating in the main CBD.

Suburbanization of office market
Much of the tenant demand over the last two years has shifted from the main CBD to secondary regions on the Asian Side. Umraniye, for instance, has become an attractive location for companies who are looking for quality A class office space and budget alternatives in accessible locations with connections to both bridges. Kavacik is another location that appeals to companies with budgetary and accessibility concerns. However, the area has infrastructure and permit related issues. We expect to observe the emergence of new sub-centers like Kagithane, due to the development of a new traffic tunnel and Kartal, with its new metro line.

Rental growth outlook
Low tenant demand in 2009 was the main reason for the decrease in prime rents. Although prime rents remained stable in 2010, we expect to see a sharp drop in prime rents in the main CBD, once the pipeline stock is realized. The main reason for the stable figures was the undersupply in most of the districts of Istanbul, as discussed above.

Office trends: Green buildings
Many of the larger office building tenants will be attracted by low rents and concessions offered by landlords in class A and B office buildings. In a market where earthquakes are a reality, with a risk of flooding in some areas, such as Basýn Ekspres in the airport region, sub-standard offices will struggle to keep tenants. Demand for environmentally-friendly, energy-saving and certificated offices will influence pipeline projects and future trends. Many multinational corporations have started to adopt sustainability standards. For the time being, these companies require some of the features of green offices, even if they do not insist on LEED or BREEAM certification.
The greening of office buildings is gaining momentum in Turkey, like the rest of the world.

The pioneering Levent Ofis by Tekfen-Oz Real Estate Development is the first speculative office building in Turkey. The development follows Siemens Offices in Gebze, which was the first owner-user office project. Most of the pipeline projects evaluate energy labeling systems in an effort to integrate these standards in their projects. Increasing demand for green offices, especially in the US and European countries, will create pressure for Turkish developers. This trend will provide a learning opportunity for developers, tenants, architects, engineers and real estate professionals. In the last two years we have observed balconies and winter gardens in the concept designs of new office projects and this is due to the support and incentives given by the local authorities. Should such incentives be given to energy saving project concepts, the realization of green buildings will be supported by many developers. We support these efforts and believe that by applying these standards, green buildings and energy improvements provide another way for developers to add value to their projects.

Istanbul (Not Constantinople)

Once the capital of several former empires and now one of the largest cities in Europe, Istanbul is currently undergoing a renaissance; a transformation from ancient capital to modern city.

Istanbul is a city of extremes and opposites. The city itself lies on two continents: Europe and Asia, split by the mighty Bosphorus strait. Originally situated on seven hills, Istanbul has grown exponentially over the past century as Turks have moved from Anatolian villages to the modern metropolis of Istanbul to make their fortunes. After all, there is an old Turkish saying that Istanbul’s streets are “paved with gold”.

There might be something to this saying as many recent developments in the city have been world-class shopping centers, like the newly opened Istinye Park. Situated near one of the commercial centers of Istanbul, developer Development Design Group intended Istinye Park to be “a unique urban lifestyle environment”� nestled amongst the hills of surrounding neighborhoods. Designed with Turkey’s rich cultural history in mind, Istinye Park also has a modern Turkish bazaar inside.

A few kilometers from Istinye lies Levent, home to one of the more elegant multi-purpose complexes in Istanbul: Kanyon. Completed in 2006, Kanyon consists of a shopping mall, a towering 22-story residential building and 30 floors of office space. Kanyon is directly connected to the Metro, making shopping or dining convenient for commuters in Istanbul. Metallic grey walls twist and bend to guide visitors through the open-air center, walls sloping upwards and towards the sky. Residents and visitors sit outside on the stone grey courtyard of Kanyon, reading books and drinking Turkish coffee, protected from the elements by the sloping curves of the building. Although situated in a busy urban environment, the organic feel of the shopping center makes it seem like an oasis.

While the skyline of Istanbul is famous for its towers and minarets, new landmarks are rising all over the city. One of the most ambitious projects, the Dubai Towers Istanbul, or DTI for short, was recently approved in the district of Levent. At a cost of $500 million, the Dubai Towers Istanbul will be a substantial investment in Istanbul’s future. Once completed, the two towers of DTI will take their place as Turkey’s tallest pair of buildings with tower one standing at over 300 meters and tower two at 250 meters.

Turkey’s first green building, known as the Istanbul Sapphire, is currently under construction directly across the street from the planned site of the Dubai Towers Istanbul. The L-shaped building will consist of a 34,000-square-meter shopping center and 47 floors of luxury residences, with enjoying nature in the middle of the city as a central theme. Private gardens will exist on every third floor of the residences, bringing the natural world indoors. As green spaces and public parks are not a common feature to most central neighborhoods of Istanbul, such features are an added highlight. Extraordinarily high-tech, the Istanbul Sapphire has a unique double façade allowing fresh air to permeate the building, as well as control the indoor temperature throughout the seasons. Residents of the Sapphire will be able to enjoy year-round green gardens despite Istanbul’s surprisingly cold winters and hot, humid summers.

With an equally elegant name, the Istanbul Diamond is an impressive three-tower structure under construction in the business district of Maslak. The three towers will connect to one another by a central spine, creating one structure. The Istanbul Diamond will be home to an immense 20,000-square-meter, 300-room hotel, an 18,000-square-meter residential block, a 16,000-square-meter office block, as well as a large shopping mall, aquarium, botanical garden, cinema and several concert halls. Soaring to the height of 270 meters above street level, a restaurant with a panoramic view on the top floor will offer diners an impressive view of both entrances of the Bosphorus. The Istanbul Diamond is currently set for completion in 2010, an important year for Istanbul as it has been chosen to be the European Capital of Culture.

The visually stunning Bijoux Plaza is also located in Maslak. With a geometrically intricate, bold-red aluminum exterior, the Bijoux Plaza will certainly make a strong impression with its innovative design. Designed by Turkish architect Emre Arolat, the Bijoux Plaza will be approximately 80 meters tall with 15 floors of office space. While not soaring to the heights of the Istanbul Diamond, the striking building will be a bold addition to the area’s many grey, rectangular office buildings. The Bijoux Plaza is currently under construction and slated for completion later this year.

Next is the Garden Life Plaza, designed by BRT Archtekten and located in Gayrettepe. The oval-shaped building will have a total of 52 floors: 44 of which will rise above street level to the height of 170 meters. Named after the three garden sections located on the front façade of the building, the Garden Life Plaza will house offices, residences, cinemas, a fitness center, a spa, subterranean dining and retail centers. Construction has not yet begun but completion is expected in 2010.

On the Asian side of Istanbul, architect Zaha Hadid is planning a futuristic and dramatic development in the suburb of Kartal. The Kartal-Pendik Masterplan is a radical project that would create a new urban center on the remains of an abandoned industrial site. Built on over six million square meters of land, the Kartal-Pendik Masterplan comes complete with a business center, residential developments, cultural buildings, parks and open spaces. The structures flow together in organic, fluid lines stretching from the tallest buildings down to single structures and finally to the sea. It is one of the most radical and visually stunning proposals that would change the face of Istanbul while creating a new city center in what most Istanbul residents consider a distant suburb.

The current wave of building reflects Turkey’s economic growth and stability over the past decade. Turkish and foreign investors are pouring money into projects all over the city. Other notable developments include a recently announced seven-floor, seven-star underwater hotel built by Tanriverdi Holding on the site of a former tobacco factory in the waterside district of Besiktas; a third Bosphorus bridge that would link Europe and Asia and aid in reducing Istanbul’s congested cross-continental traffic, as well as the Marmaray Project, which will connect the European and Asian Metro and rail systems through an immense underwater tube in the Bosphorus, further aiding Istanbul’s commuters.

While still a city very much rooted in tradition, Istanbul is currently reinventing itself, moving forward and growing to meet the demands of today’s modern world. Construction sites are impossible to avoid as new structures and skyscrapers are being built all over the city. It’s an extraordinary time in Turkey to witness such change transformation in one of the oldest and largest cities in Europe. While it remains to be seen how Istanbul and the rest of Turkey will temper progression with tradition, this has always been the predicament for this ancient capital and modern metropolis.