Turkish real estate developer Nef will reportedly invest $2.2 billion to build affordable housing across the US in a joint venture with Miami-based Workforce Housing Partners.
Nef will develop about 10,000 condos, dormitories, and rental units over five years in areas where the COVID-19 pandemic increased housing prices, Bloomberg reported, citing Nef Chairman Erden Timur.
The partnership will initially develop 2,200 units in Miami, including apartments and 800 student dormitories. It also plans to build a further 3,800 units across the US next year. The partnership also plans to invest in New York's Brooklyn and downtown Los Angeles. Nef holds 90% of the joint venture.
The joint venture will build condos in the Goulds and Perrine districts of Miami Beach, which are expected to rent for about $1,900 monthly.
Timur added that the partnership plans to initially provide 25% to 35% of investments from its own equity and then borrow the remainder from banks. He then highlighted that rental income will then help fund future housing projects.
“We are focusing on areas in the US where there is a severe housing shortage. Miami looks perfect for rental housing, as well as Austin in Texas," said Timur in an interview.
