GIC to take $402m stake in Turkish real estate developer
SINGAPORE sovereign wealth fund GIC will inject 250 million euros (S$402 million) to acquire a strategic stake in Turkey's leading commercial real estate developer, Ronesans Gayrimenkul Yatirim (RGY), both firms said yesterday.
GIC will acquire "above 20 per cent shareholding in RGY" by subscribing to a rights issue, allowing it to become a "substantial minority" investor and strategic partner.
"The new capital will reinforce RGY's foothold as a leader in the Turkish commercial real estate market and allow for future expansion of its business," the statement said.
RGY will use the proceeds of GIC's investment to develop new and existing projects. The transaction is expected to be completed later this year.
GIC, one of Singapore's two state-linked investment funds, manages Singapore's foreign exchange reserves of well above US$100 billion (S$128 billion).
It has worldwide investments in such assets as equities, fixed income, real estate, private equity and public utilities.
RGY is the commercial real estate development arm of Turkey's Ronesans Holding.
The announcement of GIC's investment followed a visit to Turkey this month by Prime Minister Lee Hsien Loong.