Business case
Our client (the Turkish Republic) was subject to an ICSID arbitration from a foreign investment company related to its investments in a large residential, office and commercial real estate project in the suburbs of Istanbul. The claim of c. €300m was divided into two parts: damages resulting from the termination of the project and damages resulting from apparent harm to other potential opportunities in Turkey.
Our report was highly technical, and it was important to ensure that it was clear without oversimplifying the content. Our added value was our experience in the real estate sector and in valuation, as well as our capacity to encompass all parts of the project. Our combined delay and quantum analysis enabled us to demonstrate that the root cause of the project’s issues was the lack of funding from the investor.
We analysed actual sales, costs, project delivery rates and sources of funding in order to understand the events leading to the termination, which led us to disagree with the opposing party’s assumptions and prepare the basis of our own valuation. We also assessed the ripple effect that the investor company claimed the project had on its other potential projects in Turkey. We were able to prove that the situation outlined by the investor had been significantly exaggerated and that the valuation of such potential opportunities was neither reasonable nor reasonably substantiated.