SINGAPORE - Rönesans Gayrimenkul Yatýrým (RGY), the real estate arm of Turkey's Rönesans Group, and an affiliate of Singapore's sovereign wealth fund GIC, have formed a strategic partnership which will see GIC acquire above 20 per cent shareholding in RGY.

GIC will inject EUR 250 million (S$403.2 million) into RGY under a rights issue 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.

Mr Chris Morrish, regional head of GIC Real Estate for Europe said: "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 equal joint ventures in shopping centres Optimum Istanbul, Optimum Ankara and Optimum Izmir.

The completion of the transaction is expected in the fourth quarter, subject to regulatory approvals.

Following the cash injection, RGY will aim to further solidify and enhance its position on the Turkish market through:

• Acquisition and development of new commercial real estate projects in strategic locations in Turkey's largest cities (utilising the proceeds from GIC's investment);

• Development of its existing pipeline of retail, office and mixed-use projects (in excess of 460,000 sqm of leasable and sellable area);

• Active asset management of RGY's existing portfolio.