Istanbul Park tender is opening! If there is no race guarantee, there is no tender

Final decisions have been taken for IstanbulPark, which has been on the agenda with the “evacuation dispute” in the past weeks. A new lease agreement is being prepared for the track within the General Directorate of Foundations. The fate of the track and surrounding real estate will be determined with the tender covering 117 million dollars. Here are the details…

Istanbul Park tender is opening! If there is no race guarantee, there is no tender!

The last agreement made by Intercity for Istanbul Park ended last year. In this context, new tender works have started for the runway, which falls within the scope of the General Directorate of Foundations. According to the announcement dated February 12, 2024, new tender conditions were determined and the tender was opened. The General Directorate of Foundations has some conditions for the tender price of 117 million 806 thousand 367.89 dollars.

Along with the renovation of the track and the surrounding properties, there are some buildings that are wanted to be built in order to revitalize the area around the track. Besides these, the most striking decision was the Formula 1 race requirement. Accordingly, the new company that will rent Istanbul Park must guarantee that Formula 1 races will be held on the track starting from 2026.

Otherwise, 25% of the Formula-1 contract price must be paid to the General Directorate of Foundations for each year in which there is no race, including 2026. In short, it seems like if there is no race, there is no agreement.

The new real estate properties we mentioned above are as follows: A new shopping mall, Go Kart track, adventure park, automobile museum, entertainment center (aquarium, artificial forests, etc.) and a small neighborhood that includes them. With these points located around the track, it is aimed to revitalize the dead areas that remain idle.

Other terms of the agreement are as follows:

• In order to make the plan modification of the complex planned to be built on the mentioned parcel and to complete all applications by obtaining permission from official institutions for construction, the Construction/Repair (construction) period is 3 (Three) years and 19 (Nineteen) years, which is the sum of the 16-year amortization period calculated by the expert report (tender). To ensure competition by increasing participation, to revitalize the idle Formula-1 track by including it in the race calendar, the total contract period should be 30 (Thirty) years by adding a profit period of 11 (Eleven) years,
• The contract period and rental payments start as of the site delivery date, with a maximum delay of 1 (One) year from the contract date,
• Taking $272,000.00 (US Dollars (USD)) as the monthly construction period rent of the real estate for the first year, then increasing the first construction period rent by 1.5% each year and determining the resulting price as the construction period rent of the following year,
• Taking $506,000 (US Dollar (USD)) as the initial rent (Operating Lease) of the 4th year of the real estate, by increasing the initial operating rent by 1.5% every year from the 5th year until the end of the work (until the end of the 30th year). Determining the amount to be found as the operating period rent of the following year,
• However, by comparing the price to be found by calculating 20% ​​of the turnover obtained from the entire property every month from the 4th Year, which is the beginning of the operation period of the real estate, until the end of the work period (until the end of the 30th Year), with the price determined in Article 4 of our decision; The higher of these two amounts is taken as the operating rent for that month,
• The Contractor will guarantee that the Formula-1 races will be held on the real estate, and within 1 (One) month after the contract of work is signed, an agreement will be reached regarding the Formula-1 races to be held on our real estate and the protocol to be signed will be notified to the Administration. If this is not done, the contract will be terminated and the deposited guarantees will be recorded as income to the administration,
• The Contractor will undertake that Formula-1 races will start on the existing Formula-1 track on the property as of 2026. For each year in which races cannot be held after this year, including 2026, an annual compensation of 25% of the Formula-1 contract price for that year will be paid to the administration.
• In order to train National Athletes, the track facility will be made available free of charge for 30 days for the events of a certain number of national and international motor sports-related Federations and various sporting activities (A “Bid Calendar” will be submitted to the administration every year by the contractor regarding the calendar of days envisaged for this work; The calendar of the 30-day period to be used will be agreed upon).
• In order to ensure that the public benefits more and more effectively from the facility planned to be constructed; In line with the request of the administration, the facilities in question will be made available to the contractor for 30 days a year, free of charge, for the use of the General Directorate of Foundations, for festivals, concerts, seminars and similar events (an annual “Offer Calendar” will be prepared by the contractor for the calendar of days envisaged for this work). will be presented; the schedule of the 30-day period to be used will be agreed upon).
• Discount application at an agreed rate to the General Directorate of Foundations Personnel in the businesses within the facility,
• Re-evaluation of the contractual rental fees in line with the parameter(s) used in determining the rental prices in case of any change in the functions envisaged in the evaluation (in the whole real estate, its additions or in one location) with the increase in the open or closed area envisaged in the evaluation of the immovable properties in question, which are currently being evaluated without a project,
• The plan modification that will be required for the construction of the structures in the facility, the evaluation of which was carried out without a project, will be carried out by the contractor of all the opinions, permissions and approval processes to be obtained from the relevant institutions, and no rights or fees will be requested from our Administration due to situations that may occur during these processes,
• After the projects of the structures/spaces in the proposed facility are clarified, the opinion of the international institutions that organize/supervise the races should be obtained and submitted to our administration, stating that the planned project does not harm the existence and function of the current Formula-1 track,
• According to the Zoning Law No. 3194, areas that may need to be abandoned to the public are abandoned in favor of the public within legal limits,
• All permits to be obtained from the necessary institutions and organizations for the projects to be prepared on the real estate in question, which is currently evaluated without a project, and the necessary work and procedures for these belong to the contractor, and no rights or fees are requested from our Administration due to situations that may occur during approval,
• The contractor must take the necessary precautions and permissions for security to be taken from the date of delivery of the parcel (immovable property), our Administration has no responsibility regarding these issues, and no fee is requested,
• The Contractor, starting from the site delivery date; If all necessary plan modifications are made for all buildings/structures within the complex envisaged in the evaluation to be prepared within 18 months (excluding additional time and time extensions), the exercise projects are approved by the relevant institutions and organizations, and the work does not start by obtaining the construction permit, the Administration will terminate the contract, the deposited rents and all recording the guarantees as income to the Administration,
• At the end of the Contractor’s lease contract, the contract can be continued, provided that the Contractor accepts the rent price to be determined by the Administration by revaluation, within the consent and consent of the contract parties,
• Not opening (partial) use of the structures envisaged in the evaluation until the construction of all of them is completed,
• Those who have previously signed a contract with the General Directorate of Foundations for long-term rental works such as flat in return, construction and repair provision, restoration and repair provision, and have completed their work completely and completely in accordance with the procedures and principles specified in the contract and specifications, without being subject to any penalty within the given period. Those who do not make it ready for acceptance and submit it to the Administration cannot participate in this tender,
• Those who are occupiers or unauthorized users of real estate owned by the General Directorate of Foundations and Seized Foundations without being subject to an ongoing contract with the administration cannot participate in this tender; However, it can participate in the tender if it gives up any lawsuits filed against the Administration regarding the immovable property it occupies, if any, before the deadline for applying to the tender, and gives a notarized eviction undertaking stating that it will abandon, surrender and evacuate the immovable property it occupies to the Administration within 1 (One) month at the latest.
• Within the scope of the legislation regarding the condition that the Site Delivery should be made after the evacuation process is completed, in addition to the Formula-1 track already on the real estate, there will be a shopping center, adventure park (go kart, amusement park, climbing track, sightseeing train, etc.), automobile museum and entertainment center ( to have spaces/structures built for functions such as aquarium, bird park, zoo, rainforest,

It is a lease tender for construction and repair for a period of 30 years within the scope of the State Tender Law No. 2886 and the relevant legislation.

• Estimated price; It is the sum of the construction cost and the rental fee to be paid during the construction period.

Estimated cost of the work; 117,806,367.89 USD

• Tender (contract) price; It is the sum of the construction cost and the rental fee for the construction period (resulting from the tender).

So what do you think about the Istanbul Park tender? Don’t forget to express your opinions in the comments section…