GIC forms strategic partnership with Turkey’s Ronesans Gayrimenkul Yatirim through €250 million rights issue

Rönesans Gayrimenkul Yatırım A.S. , the real estate arm of Turkey’s Rönesans Group, and an affiliate of GIC, Singapore’s sovereign wealth fund, have announced the formation of a strategic partnership which will see GIC acquire above 20% shareholding in RGY.
The agreement takes the form of a primary rights issue, whereby GIC will inject €250 million into RGY to fund acquisitions and development of new projects in Turkey. The new capital will reinforce RGY’s foothold as a leader in Turkish commercial real estate market and allow for future expansion of its business.
As part of the transaction, GIC will be granted representation on the board of directors of RGY to participate in the strategic direction of the company.
According to Dr. Erman Ilicak, Chairman of Rönesans Holding, “This partnership further bolsters our relationship with one of the most reputable long-term global investors in the real estate industry. Following three previous joint venture transactions at the level of individual projects, we are very pleased to have GIC now on board in RGY at the platform level as well. We look forward to solidifying RGY’s presence in Turkish commercial real estate development together with GIC’s collaboration.”
According to Chris Morrish, Regional Head of GIC Real Estate for Europe, “We are pleased to be making our first corporate real estate investment in Turkey, by taking a minority ownership position in RGY, one of the most reputable property developers and investors in Turkey. As a long-term investor, we are confident that Turkey will continue to grow and present good investment opportunities.”
Since 2012, RGY and GIC have formed 50:50 joint ventures in shopping centers Optimum Istanbul, Optimum Ankara and Optimum Izmir.
The completion of the transaction is expected in the 4th quarter of 2014 subject to regulatory approvals.
Source: GIC