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Higher education institutions (HEIs) are not only the rising actors of the knowledge-based economy—they are also among the concrete physical structures taking part in the transformation of cities. As large physical constructions, they have the potential to affect urban form. Moreover, HEIs have also begun to act as developers and their locations have become a matter of concern for local politics. In the global era, there are a number of driving forces in the restructuring and location patterns of the HEIs in cities. The nonprofit-private foundation universities (FUs) that were introduced into the Turkish higher education (HE) system in the past decade, and in particular Koç University (KU), illustrate these issues clearly. Possible relations between globalisation and HE are presented with reference to the restructuring of the HEIs. This is related to the desire to locate at the nodes of global flows. The location of the FUs in Istanbul, Turkey, and in particular of KU, is the focus. The motivation of the actors in the process is assessed in relation to the theoretical issues. The authors present the growth coalition and local opposition that were significant in the decision-making process relating to KU. [ABSTRACT FROM AUTHOR]