Renaissance Real Estate Investment [Rönesans Gayrimenkul Yatirim A.S.(RGY)], which has successfully completed 13 high-yielding shopping center and office projects in Turkey and Russia to date and has assembled a portfolio of 30 properties, will list its shares on the ISE on May 20, 2011. The top management of RGY, which will allocate 70% of its IPO to international institutional investors, has been holding roadshow meetings with the prospective investors in Europe, US and Dubai since April 20.
Rönesans Gayrimenkul Yatirim A.S., which was founded in 2006 by Rönesans Holding, one of Turkey's leading business groups with activities in construction, real estate and energy sectors, is preparing to float its shares on the ISE on May 20, 2011. RGY, which has successfully completed 13 high-yielding shopping center and office projects in Turkey and Russia and assembled a portfolio of 30 properties, will be giving further impetus to its new projects after the IPO.
RGY's top management is holding roadshow meetings with the European and US investors to inform them about the company's current and ongoing projects. The company's management team, led by RGY's Chairman Erman Ilicak and CEO Cenk Arson have come together with investors in Amsterdam, Stockholm, Dubai, Frankfurt, Zurich and Warsaw since the beginning of the roadshow program in London on April 20.
The management team will be seeing new investors in New York on May 8-9, in Boston on May 10, in Vienna on May 11 and then again in London on May 12-13. The investors are showing a strong interest in RGY, which has exhibited a steady and successful growth path since its inception with its international scale, high-yielding projects. The joint global coordinators of the IPO process are Garanti Yatirim, Credit Suisse and Deutsche Bank.
Expected IPO proceeds of 176-258 million
The IPO will be through a combination of 23.1% primary shares and 2% secondary share sales. The book building price range for the IPO has been set as TL 5.00 TL 6.40 (2.24 - 2.87) per share. RGY, which expects 176-258 million of total proceeds from the IPO, will be allocating 70% of the offering to international institutional investors, 20% to domestic retail investors and 10% to domestic institutional investors. RGY also holds a 15% over allotment option.
Right decision, strong financing
With an EPRA Net Asset Value of TL 1.83 bln. (894 million), RGY has realized 13 high-yielding real estate projects to date. Securing success thanks to a robust financial structure and a prudent investment decision-making process, RGY has realized steady growth with its shopping center projects in Turkey and office projects in Russia since its foundation. Starting a new era in the Turkish shopping center industry with its 'Optimum' outlet concept, RGY has added a new link to its Optimum chain by opening a new shopping center in Adana following those in Ankara and Istanbul.
RGY's Kozzy Istanbul, Gaziantep Sankopark and Sirehan Shopping Center projects have also achieved high occupancy rates. Having recently opened Aura Novosibirsk, the largest shopping center in Siberia, RGY has become one of the most reputable companies operating in the Russian market with its office based projects. As one of the largest office investors operating in St. Petersburg, Russia, RGY owns a combined 410,000 m² of Gross Leasable Area (GLA) in Russia and Turkey. RGY has grown its total assets by 68.2% to TL 2.6 bln. (1.3 bln.) and shareholders' equity by 118.5% to TL 1.6 bln. (788 million) in the last two years.
750 million investment in three years
RGY plans to increase the number of its completed high-yielding projects to 23 in the next three years, for which it will invest a total 750 million. The new projects to be realized after the IPO include Aura Shopping Center project in Surgut, Office and Shopping Center Project in Tyumen, Renaissance Reschetnikova and Renaissance Pravda office projects in Russia and Optimum Izmir Shopping Center, Küçükyali Shopping Center and Hotel, Samsun Shoppi