Fund manager Cordea Savills has launched a €1bn (£810m) Turkish opportunistic fund that will target shopping centre and residential development opportunities.

The Cordea Savills Turkish Property Ventures Fund will target returns of 20% a year. The fund will be a Luxembourg FCP with a planned life of five years. The target equity it is hoping to raise will be €400m (£322m) while its target leverage will be 60% loan to cost which is the construction costs plus land value.

It said Turkey had a fast-expanding economy with more than double the forecast annual average GDP growth of the Eurozone and a large and growing population that continued to undergo rapid urbanisation driving demand for modern retail, commercial and residential property.

Ian Jones, director of investment at Cordea Savills and portfolio manager for the fund, said: ‘The Turkish Property Ventures Fund will offer exposure to a large and dynamic economy characterised by high GDP growth and a young and growing population with increased spending power.

‘There is a dramatic shortage of quality stock in all sectors and strong demand from some household name companies for retail outlets. Turkey is still an emerging market but by partnering with local developers we will tap into local expertise and mitigate substantially the development risk.’