GE Real Estate, Dogus take stake in Turkish REIT

GE Real Estate Central & Eastern Europe and Istanbul-based conglomerate Dogus Holdings have acquired a 50.98% stake in the Garanti REIT for EUR 37.5 mln.

Established in 1997, Garanti REIT invests in commercial real estate and development projects in the retail and residential sectors. It currently has six investments, located in Istanbul and Antalya in Turkey and Bucharest in Romania. The largest project is the Dogus Power Center, a retail development in the heart of Istanbul. Comprising 63,000 m² with seven anchor clients, the centre opened in November 2006. The other assets include offices and a residential development in Istanbul.

The acquisition of the stake in Garanti REIT is GE real estate's first investment in Turkey whcih it described as 'an emerging market, which is attracting increasing interest from international investors'. Dogus said the deal signifies the development of a key area for growth within its operations, with the intention to make real estate the sixth pillar of its operations . The group has to date been active in the finance, automotive, construction, tourism and media sectors.

The GE Real estate-Dogus joint venture aims to develop Garanti REIT into a EUR 375 mln investment vehicle, with a strong focus on residential developments and offices in Istanbul and across Turkey.

Garanti REIT is listed on the Istanbul Stock Exchange and had a market capitalisation of EUR 71.5 mln as at December 5, 2006.