SINGAPORE - Singapore sovereign wealth fund GIC is buying around 20 per cent of Turkish real estate company Ronesans Gayrimenkul Yatyrym (RGY) for €250 million (S$405 million).
The deal - GIC's first corporate real estate investment in a Turkish company - will "reinforce RGY's foothold as a leader in the Turkish commercial real estate market and allow for future expansion of its business", said both parties in a joint statement yesterday. GIC will also get representation on RGY's board.
"As a long-term investor, we are confident that Turkey will continue to grow and present good investment opportunities," said Mr Chris Morrish, regional head of GIC Real Estate for Europe.
Dr Erman Ilicak, chairman of RGY parent Ronesans Holding, said: "This partnership further bolsters our relationship with one of the most reputable long-term global investors in the real estate industry.
"We look forward to solidifying RGY's presence in Turkish commercial real estate development, together with GIC's collaboration."
The transaction is expected to be completed before the end of the year, subject to regulatory approvals. RGY plans to use the proceeds from GIC's cash injection to develop new commercial real estate projects in the country's largest cities. It also aims to develop its existing pipeline of retail, office and mixed-use projects, which has in excess of 460,000 sq m of area that can be leased or sold.
RGY, which focuses on commercial real estate, holds 25 properties, including the Optimum, Piazza and Kozzy shopping centres, Ronesans Tower and RonesansBiz office centres.
RGY and GIC have participated in equal joint ventures for three shopping centres in Turkey since 2012.
This article was first published on October 31, 2014.
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