Rönesans Gayrimenkul Yatırım A.Ş. is Going Public
Book-building on April 17, 18, and 19.Rönesans Gayrimenkul Yatırım, the largest investor in Türkiye's shopping malls by both number with 12 and gross leasable area, is taking a significant step by going public.
Rönesans Gayrimenkul Yatırım A.Ş., the investor and operator behind popular shopping mall brands like Optimum, Hilltown, and Piazza, which are spread across 7 cities in Türkiye, is scheduled for its public offering on April 17, 18, and 19. The book-building for this offering will be led by a consortium that includes Ak Yatırım and Deniz Yatırım.
Rönesans Holding's commercial real estate development and investment company, Rönesans Gayrimenkul Yatırım A.Ş. (Rönesans Gayrimenkul Yatırım, RGY), continues to operate as Türkiye's largest commercial real estate investment group with its management of 16 separate investments. The company, which has approximately 740,000 square meters of gross leasable area (approximately 640,000 square meters in shopping malls and approximately 100,000 square meters in offices), will offer its shares to the public as part of its IPO. Led by a consortium headed by Ak Yatırım and Deniz Yatırım, shares with a total nominal value of 33,357,450 TRY will be offered to the public at 135 TRY per share, with 80% allocated to domestic individual investors and 20% to domestic institutional investors. The IPO, valued at a total of 4.5 billion TRY, will result in a public float of 10.08% for Rönesans Gayrimenkul Yatırım.
As Rönesans Gayrimenkul Yatırım shares begin trading on Borsa İstanbul, price stabilization transactions will be carried out using resources provided by Rönesans Holding, which correspond to 25% of the public offering size. In this context, a total of 1.1 billion TRY will be available for use through Deniz Yatırım for a period of 30 days.
WE ARE TÜRKİYE'S LARGEST SHOPPING MALL INVESTOR
Özgür Canbaş, a member of the Board of Directors of Rönesans Gayrimenkul Yatırım, stated that RGY is the largest investor and operator of shopping malls in Türkiye in terms of both number and gross leasable area. Supported by Rönesans Holding's high engineering and architectural expertise, Canbaş emphasized RGY’s steady growth: "As of December 31, 2023, we own a real estate portfolio consisting of 16 assets valued at 85.5 billion TRY (approximately 2.6 billion Euro). As a result of our strong partnership structure, our international recognition and resource creation capability are both very high. As a company possessing some of Türkiye's best-known shopping mall brands, we aim to enhance the visibility and recognition of Rönesans Gayrimenkul Yatırım alongside its public offering, as it is the investor in all these projects. Furthermore, while increasing our competitive strength, we plan to fortify our financial structure and move closer to realizing our growth objectives. Özgür Canbaş mentioned that in addition to the 12 shopping malls in Rönesans Gayrimenkul Yatırım's portfolio, RGY is developing a new project on the plot adjacent to İstanbul Maltepe Park Shopping Mall and Office. He stated that construction began in December 2023, following the acquisition of the necessary permits. Canbaş also noted that Rönesans Gayrimenkul Yatırım's portfolio includes two plots in Ataşehir and Ümraniye as well as the Beachtown Project in Antalya, adding: "We have started to work for the Antalya and Ümraniye projects. We are also exploring new opportunities to expand our portfolio."
WE AIM TO CREATE THE HIGHEST VALUE FOR ALL OUR STAKEHOLDERS
Özgür Canbaş, highlighting that Rönesans Gayrimenkul Yatırım's public float will be 10.08% following the offering, stated: "First, I must clarify that we are not a Real Estate Investment Trust. Therefore, our public float is significantly lower than that of a REIT. We are an investor and operator company with assets primarily generating rental income from malls and offices. Our rental contracts consist of two main components: base rent and turnover rent. Base rent provides protection against inflation, while turnover rent allows us to generate real returns. Since we are not predominantly a residential company, we are unaffected by the high residential mortgage rates. In selecting tenants, we consider the target audience and the concept, focusing on international chain brands. This approach enables us to manage our commercial properties in a sustainable way."
WE REACHED 100 MILLION VISITORS IN 2023
Özgür Canbaş noted that RGY malls, typically the largest or the only shopping centers in many provinces, attracted about 100 million visitors in 2023 and achieved an impressive occupancy rate of 97.3%. Özgür Canbaş, noting the steady increase in rental income, stated: "As of 2022, the sector gained momentum and, with the impact of base rent that protects against inflation and turnover rent that creates additional value, the adjusted rental income from investment properties (including the rental incomes obtained in proportion to the company's share in joint ventures), saw a 51% increase over 2021, reaching 5.7 billion TRY in 2023. In addition, the adjusted EBITDA rose by 42% compared to 2021, reaching 3.7 billion TRY in 2023. These substantial increases show that RGY meticulously monitors its revenues and costs, even during periods of high inflation, and takes swift action when necessary. RGY's strong operational and financial performance also led to a 42% decrease in adjusted net bank debt, from 37.3 billion TRY as of December 31, 2021, to 21.8 billion TRY as of December 31, 2023. RGY's successful business strategies and operational efficiency not only increased income but also boosted our equity, which rose from 22.9 billion TRY on December 31, 2021, to 55.7 billion TRY on December 31, 2023.”
WE INVEST IN A SUSTAINABLE FUTURE
Özgür Canbaş stated that Rönesans Gayrimenkul Yatırım consistently aims to create the highest value for all its stakeholders by developing commercial real estate projects that are sustainable, environmentally friendly, profitable, impactful, and contribute to social, commercial, and business life, all while adhering to international standards. He added: "The sustainability objectives of Rönesans Holding, which operates in the fields of construction, real estate, healthcare, energy, and petrochemicals across 30 different countries in Europe, Central Asia, and Africa, with a particular focus on Türkiye and the Netherlands, extend to all its subsidiaries. At Rönesans Gayrimenkul Yatırım, we align our actions with these same goals. We continue our work according to the principle of sustainable development from the beginning stages of architectural design to development and operational processes. We are committed to contributing to a sustainable future in our shopping malls. As a result of our carbon reduction efforts, emissions from consumption in common areas were reduced by 40% in 2022 compared to 2017. 90% of the gross leasable area in our mall portfolio has received at least one certification from BREEAM as 'Outstanding' and from one certification from LEED as either 'Platinum' or 'Gold.' Being awarded the 'Outstanding' certification by BREEAM for all assets is considered a 'rare global achievement.' Moreover, in collaboration with our group company, Rönesans Enerji, we plan to invest in unlicensed wind energy to meet the green electricity needs of our shopping malls.”Rönesans Gayrimenkul's parent company, Rönesans Holding, maintains its leadership among Turkish firms while ranking 9th in Europe on the ENR list of the world's largest contracting companies. Combining its international experience, advanced engineering know-how, and financial strength, Rönesans Group, together with its partners GIC, Meridiam Infrastructure, Sojitz, Samsung C&T, TotalEnergies, and the World Bank organization IFC (a minority shareholder of the group), has invested over 8 billion Euro in pioneering projects in Türkiye and abroad.