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ISTANBUL-GE Real Estate Europe and Dogus Holding have bought a 50.98% stake in the publicly listed REIT Garanti Gayrimenkul (Garanti REIT) for $50 million. It is GE's first investment in Turkey.

Garanti REIT is listed on the Istanbul Stock Exchange with a market capitalization of YTL 136.7 million (US $94 million). The price paid by GE Real Estate and Dogus represents a 36.9% premium to the Garanti REIT's net asset value as of Sept. 30, 2006. REIT regulations mean the public shareholding of a REIT should be at least 49% of the share capital, so GE and Dogus plan to sell the additional shares.

Garanti REIT, established in 1997, invests in commercial real estate assets and development projects in the retail and residential sectors. It currently owns six investment assets located in Istanbul and Antalya, Turkey and Bucharest, Romania. The largest asset in the portfolio is Dogus Power Center, a retail development in the heart of Istanbul. It is a 63,000-sm center with seven anchor tenants, set to be launched in days. The other assets include offices and a residential development in Istanbul.