New legal entity through partial demerger of GIH to consolidate all real estate assets

In line with its aim to streamline the group structure and also to pursue new opportunities in the rapidly changing real estate sector in an enhanced organization and capital structure, Global Investment Holdings’ (“GIH”)Board of Directors have decided to consolidate all real estate assets/projects owned directly by the GIH itself under a new legal entity which shall be established through partial demerger of GIH. The transaction will not by itself result in any change on the consolidated financial statements of GIH as the new company will be a 100% owned subsidiary of GIH. Further since the result of the demerger on GIH’s standalone financial statements will simply be a replacement of real estate with shares of the new company, there will be no impact on the capital structure, paid-in capital or the number of outstanding shares of GIH.

Accordingly, GIH’s Board of Directors have decided to apply to the Capital Markets Board of Turkey (CMB) to form the aforementioned entity through a demerger . Following the approval of the CMB, GIH should call for an Extraordinary General Assembly, as such decision of the Board of Directors has to be approved at General Assembly.

Subsequently, GIH will be evaluating the transfer of other real estate projects owned by other Group companies (such as  Pera REIT -Sumerpark Mall, Skycity Office Project- Global Ticari Emlak Yatirimlari A.S. -Van Shopping Mall-) under the same newly established subsidiary either by transfer of shares held by GIH in those Group companies or by any other appropriate methods.