Singapore's GIC has made its second direct real estate investment in Turkey by taking a half share in Optimum Ankara shopping centre in the Turkish capital.
Singapore's GIC has made its second direct real estate investment in Turkey by taking a half share in Optimum Ankara shopping centre in the Turkish capital.
The 50-50 joint venture agreement with the real estate arm of Turkey’s Rönesans Group reflects a property value of $165 mln (€127 mln). Closing of the transaction is subject to regulatory approval.
Rönesans' real estate arm RGY will continue to manage the 40,000 m2 shopping centre which is located in the Eryaman district of Ankara.
The deal is the second direct property transaction by GIC, the real estate investment arm of the Government of Singapore Investment Corporation, in Turkey, and the second with RGY.
GIC acquired a 50% share in Istanbul Optimum Outlet from Rönesans for about €180 mln in December 2012. The centre opened in the Ataºehir district of Turkey's largest city in 2008 and offers 39.000 m2 of gross lettable area. The property won ICSC Europe's Best Outlet Center Award in 2010.
Chris Morrish, regional head of Europe at GIC Real Estate, said: 'We see the relationship with RGY as an important part of our real estate investment strategy in this fast growing market.'
RGY owns 36 properties with a gross asset value of $2.4 bn. Some 300,000 m2 of the portfolio is in Turkey, with the remaining 190,000 m2 in Russia.
GIC was established in 1981 to manage Singapore’s foreign reserves and now administers more than $100 bn. The group invests internationally in equities, fixed income, natural resources, real estate, private equity and infrastructure.
Click on the link below for a pdf of our report on PropertyEU's recent Investment Briefing on Turkey
