Press Relases

GE Real Estate Central & Eastern Europe (“GE Real Estate”) and Dogus Holding A.S (“Dogus”) are pleased to announce the completion of the acquisition of a 50.98% stake in the Garanti Gayrimenkul Yatırım Ortaklığı A.Ş (the “Garanti REIT”) for 142.2 million YTL (US$98.07 million / €73.5 million).

 

Established in 1997, Garanti REIT invests in commercial real estate assets and development projects in the retail and residential sectors.  It currently owns six investments located in Istanbul and Antalya in Turkey and Bucharest, Romania.  The largest asset in the portfolio is Doğuş Power Center (“DPC”) a retail development in the heart of Istanbul, comprising 63,000 sqm with seven anchor tenants, which opened on 9 November 2006.  The other assets include offices and a residential development in Istanbul.

 

Garanti REIT is GE Real Estate’s first investment in Turkey, an emerging real estate market, which is attracting increasing interest from international investors.  For Dogus, this deal signifies the development of a key area for growth within its operations, with the intention to make real estate the sixth pillar of the conglomerate’s operations.  The joint venture aims to develop Garanti REIT into a $500 million (€375 million) investment vehicle, with a strong focus on residential and retail developments and offices located in Istanbul and across Turkey.

 

Commenting on the deal, Karim Habra, Managing Director of GE Real Estate Central & Eastern Europe said, “We are delighted to be announcing the completion of our first investment in Turkey, a very exciting market for us.  Its rapidly developing real estate sector and thriving economy offer a compelling opportunity for us to grow our business further in new European markets. We also look forward to working with Dogus to add value to Garanti REIT’s assets and grow the REIT into a significant player in the Turkish market.”

 

Mr. Husnu Akhan CEO of Dogus Holding added, "We are keen on deepening our partnership with GE and executing our Group's real estate growth ambitions via the REIT.  We see this co-investment as the first fruit of both sides' intention to work together in Turkish real estate, a market which we believe presents tremendous growth potential. The investment by GE Real Estate, one of the world's premier real estate companies, underlines the strength of the investment climate in our country and we hope to leverage the international expertise of GE Real Estate in growing the REIT further.”

 

Garanti REIT is listed on the Istanbul Stock Exchange; symbol GRGYO, with a market capitalization of 138 million YTL, or US$95 million / €71.5 million, as at 05 December 2006.

 

Semih Yalman/Secil Baykara, Doguş Grubu Binaları, Büyükdere Cad. No: 65 Maslak, 34398, Istanbul
Tel: +90 (212) 335 32 32 Ext: 3109 Faks: +90 (212) 285 40 05
Email: syalman@dogusgrubu.com.tr; sbaykara@dogusgrubu.com.tr; www.dogusgrubu.com.tr

 

Stephanie Highett/Dido Laurimore/ Nicole Marino
Tel: +44 20 7831 3113,
Email: Stephanie.highett@fd.com, dido.laurimore@fd.com, nicole.marino@fd.com

 

GE Real Estate (www.gerealestate.com) is one of the world's premier commercial real estate companies with USD49 billion in assets and a presence in 24 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 26% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises.  This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.

 

GE Commercial Finance (www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services.  With over US$206 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow.  Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.

 

 

Doğuş Group is one of the largest conglomerates in Turkey with a vision to become a regional leader in the service sector. Doğuş Group is active in five sectors with high growth potential, namely finance, automotive, construction, tourism and media. With over 16 thousand workers serving more than 6 million customers, the Group uses its dynamic human resources and superior technological capital to create brand value that ensures customer loyalty. Dogus Group seeks leadership in its chosen core activities by developing synergies amongst the Group divisions as well as through global partnerships.