February 22, 2019 / 10:12 AM / 10 months ago

Turkey's Babacan Holding to invest in energy, logistics

ISTANBUL, Feb 22 (Reuters) - Turkish real estate and construction company Babacan Holding is planning to invest 200 million euros ($227 million) in geothermal energy and 120 million lira ($23 million) in the logistics sector, the company’s chairman said on Friday.

The unlisted company will finance 50 percent of the energy investments from its own capital and seek foreign financing for the remainder, Ibrahim Babacan told Reuters in an interview.

Babacan Holding had planned to go public this year but would likely postpone those plans given waning interest from investors due to high exchange and interest rates, he said.

“We are carrying out work on geothermal energy in Aydin’s Soke region,” he said, referring to the western province.

“We are drilling in three different places. We are planning geothermal plants with a total of 110 megawatts. We will realise the investments in three years.”

Electricity produced from the plants would be sold to the state and the company could engage in greenhouse farming to utilise the heat produced during the process, Babacan said.

The company would also invest in the logistics sector and would begin two separate logistics storage construction projects in 2019 in Turkey’s northern Marmara region, he said.

This year, it would begin two real estate projects in Istanbul and the southern province of Gaziantep worth a total of 600 million lira, Babacan said, adding it already had three ongoing projects worth 1.6 billion lira.

($1 = 0.8815 euros)

$1 = 5.3295 liras Writing by Ali Kucukgocmen Editing by Daren Butler and Edmund Blair

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