DOĞUŞ-GE REIT

History

Beginning in 1995, Real Estate Investment Trust (REIT) Companies began to operate in our country for the first time, mainly due to regulations prepared by the Capital Markets Board. Starting in 1997, they became publicly listed in the Stock Exchange.

On July 25^th 1997, our company started to operate as the third REIT in the stock exchange with the title "Osmanlı REIT". The Company had a "registered" capital of TRL 5 trillion and a "paid-in" capital of TRL 250,000 and was listed on the Istanbul Stock Exchange (ISE) 100 index.

At the end of 2001, as a result of the merger of Osmanlı Bank and Garanti Bank - both belong to Doğuş Group - 51% of the company's shares were transferred to Garanti Bank, making it a financial subsidiary of Garanti Bank and its name was changed into Garanti REIT. By the end of 2005, the company's "registered" capital and "paid-in" capital reached TRL 500 million and TRL 93.78 million, respectively.

As of December 1, 2006, the shareholding structure of Doğuş-GE REIT changed as Garanti Bank sold 50% of its shares to GE Capital Corporation and 50% to Doğuş Holding A.Ş. Currently, Doğuş Holding A.Ş. and GE Capital Corporation each hold 25.5% of the shares, while 49% of the shares are publicly held. Shares are listed on the Istanbul Stock Exchange (ISE) National 100 and ISE-GMYO industrial indices, and their ticker symbol in the national market is "DGGYO".

Vision & Mission

Supported by the synergy of the new shareholder structure, Doğuş-GE REIT's ambition is to be one of Turkey's leading Investment and Development companies. The combination of GE Real Estate's global experience and capital with Doğuş Group's experience in finance, construction and real estate will create this synergy.

Doğuş-GE REIT's mission is to increase the value of its investment portfolio through stable growth, thus maximizing shareholder value by offering higher dividends and market capitalization and to provide the highest customer satisfaction in the projects developed.

Focal point of our investment strategy: Original and affordable residential units

Doğuş-GE REIT's strategic target is to invest in architecturally original, and financially reasonable, housing development projects with a certain conceptual approach, appealing to middle and upper-middle income groups in metropolitan areas such as Istanbul, and in commercial real estate and development projects, with regular, low risk and high lease returns.

Modern quality policies

The quality of products and services has become more important than ever, due to ever-increasing competition. Therefore, the ISO (International Organization for Standardization) has set the ISO-9000 quality system standards in order to secure product and service quality. Systems, that are implemented by companies, will be inspected and documented by independent institutions.

Under these conditions, the Quality System of DOĞUŞ-GE REIT was "re-endorsed" with the audit and inspection performed by TUV Sudwest TGK in 2004., This continued endorsement once again certifies that the elements of transparency, reliability and professionalism elements are maintained in the management processes of DOĞUŞ-GE REIT and that the established management system conforms to international standards.

Headlines from 2008 activities

DOĞUŞ-GE REIT expands its portfolio by basing its policy and activities upon investment in profitable and large-scale projects and on the creation of high value for its shareholders and investors. During 2008, REIT explored investment opportunities in residential and commercial real estate market.

REIT sold its shares in GKY Romania Company, which owns 34.500 m² of land in Bucharest's Voluntari region, and gained Euro 4,050,579 in sale income. The company announced an office tower project in Maslak Istanbul with a total construction area of 105,000 sq.m. and a gross leasable area of 65,000 sq.m.

The company’s net asset value rose to TRY 165.4 million at year-end 2008, or by 21.44%. Despite the increase in portfolio and net asset value, market capitalization is down to TRY 43,1 million from TRY 129.4 million, amid global economic crisis.

With the impact of the revaluation, portfolio assets profit figures increased to TRY 29.1 million from TRY 19.1 million.

Highlights from properties portfolio

Doğuş GE REIT has a large portfolio of properties with Doğuş Power Center in Maslak, İstanbul. The portfolio also encompasses 3 commercial properties in İstanbul, 1 in Levent, 1 in Taksim and the other in Etiler and a shopping mall, Antalya 2000 Plaza, in Antalya.

Istanbul / Maslak, Shopping Center Project, "Doğuş Power Center"

In the classification of shopping centers, the term "power center" is used for shopping centers that contain large shops that are "category killers" due to their size and the variety of the products and brands in the inventory. Such centers are quite common, especially in the USA, and offer customers the opportunity to shop comfortably in large spaces, to find a variety of brands for one product, and to ship at reasonable prices. These centers are also easy to access and car parking is readily available. Some contain department stores only, whereas others also contain small shops, with entertainment and food units to support the department stores.

Doğuş Power Center is a pioneer in Turkey since it contains only large spaces and has a unique mixture of shops. This mixture includes diverse units such as automotive showrooms and service areas, food market, music market, home furniture, sports equipment, electronics and food court. Doğuş Power Center is in Maslak, an urban location that is also a main business center, and includes only large shops or 'Big Boxes'. However, unlike similar centers elsewhere in the world, it has high-quality internal design and furnishing. The most important factor is that the Maslak-Levent area is Turkey's banking and finance center, and many well-educated, white-collar employees work in the area. The center also offers significant access advantages due to its proximity to the coastal road, TEM and E5 highways, the connecting roads for both bridges, and the new metro (subway) station.

Doğuş Power Center offers significant advantages to the shops it hosts. Most shops are forced to move out of the city when they cannot find reasonably priced, large spaces, in urban mall-type shopping centers. This creates disadvantages when attempting to attract the desired customers. Doğuş Power Center offers such shops the opportunity to have large spaces in a very central location, such as Maslak. The center has a total indoor area of 58,000 m², 33,000 m² of which is dedicated to shops. The center can accommodate 900 vehicles, with 13.000 m² of closed and 9.000 m² of open parking space. Doğuş Power Center was completed in November 2006 and has been in use since. According to the expertise report prepared by Taksim Gayrimenkul Değerleme A.S. by the end of 2008, its market value is TRY 147,486,000.

Outlook

In 2009, Doğuş-GE REIT aims to manage the current portfolio to maintain cash flow, to decrease vacancies and to improve tenant quality.