Rönesans Holding Başkanı Erman Ilıcak - Rönesans Gayrimenkul Yatırım Halka Arz

One of the first companies that Rönesans established was actually Rönesans Gayrimenkul Yatırım. We laid its foundation 22 years ago, even older, 23 years ago, starting with our first shopping center in Ankara, Optimum Shopping Center. Then, one after another, we built a series of shopping centers. In our portfolio, we had a partnership. Initially, they bought 3 shopping centers' shares, then later they bought shares from us and became partners. At that day's money, it provided about 500 million dollars of foreign currency inflow in 2013, I think, by buying 21% of our shares. Before that, they had become partners in 3 shopping centers. As I said, it's our pride, something I've cherished from day one and put a lot of effort into. One of our companies, probably one of our flagship companies.

Actually, the IPO decision. Actually, as a management style, with the entry of our partners from Singapore, the company's management completely transformed from a subsidiary or one of the company's growth areas into a very professional company 10 years ago. Then we issued a bond, we issued a Eurobond, and with that, the company had already become very corporate. While progressing on that corporate path, one thing that needed to be done was to go public, to have thousands of shareholders that we could be proud of and comfortably partner with. That structure had formed, and we wanted to share it. The company's internal partnership structure is very solid, its capital is very strong. 98% of the shopping centers are occupied. After the pandemic, we almost doubled the revenue. Our tenants in the shopping centers are very good, all of them, a portfolio built with high-quality construction standards that we treat as our pride. Actually, we sold off the things we were not very sure about over time. We sold them and turned it into a very nice thing consisting of shopping centers and very high-quality offices, with tenants like Turkcell. As I said, it was already very corporate internally. We already had a partner. As a natural result and natural progression of that, we found the IPO very suitable, so we did it.

Our expectation from the IPO is primarily not to embarrass our people. So our first expectation is to do things that will not embarrass them. And I think it will be successful. Every job we have done so far, thank God, has been successful. Our people have serious trust in us. So I think similarly, long-term partnerships and relationships will be established. Through this, especially in Turkey right now, shopping malls are not experiencing a very bright period. So how will this affect the IPO? Yes, I see that the perception about shopping malls is really not very good. But as in every business, there are successful ones and unsuccessful ones. Ours is probably among the most successful. We have 14 shopping centers that are dominant, dominating their region, with a very strong tenant mix. They are above a certain size and dominate their market. Almost all of our shopping centers dominate their regions and direct the trade there. And over time, because we have invested a lot in them, they have caught up with the times. They opened up with outdoor spaces, restaurants, cafes, meeting today's needs. The first generation we call closed-box shopping centers, there are actually four generations. The first generation, those closed boxes, have really outlived their usefulness. They are getting more difficult every day. But all of ours have been transformed over time. So, with tenants, 97-98% occupancy, there is always a technical vacancy in shopping centers. With nearly 2000 tenants, it is a very solid structure that we can confidently stand behind, sure of everything.

Actually, we have three plots in the portfolio. One is a residential plot right next to Maltepe Park. We will develop it as residential and start sales from next September. We are waiting for the market to improve a bit, but we are also building it. In Ümraniye, we have a plot we bought years ago and are partners with Doğan Holding. Then we have a plot in Antalya. Total three. The one in Antalya is in the Konyaaltı region, a very good location. We have been working on developing these plots for years. So, by developing them, selling the residential units, and converting them into other investments, we are a company that is constantly in action, developing new products, making new contracts, very dynamic and continuously growing.

We haven't started collecting demand yet. Actually, we will start tomorrow. But foreign investors have known for years that in Turkey, to follow the sector, they follow it through us. We already have foreign investors. It is a company known worldwide. Actually, Rönesans Gayrimenkul Yatırım. So I think there will be demand there too.

Well, there must be some minor negative effects, but I think we have left the worst behind. As a country, we have gone through very difficult times. Since 2013, then 2016, July 15th, and then COVID. As a society that has come out of all of them strong and strengthened, we don't really care much. Turkey's internal dynamics are very strong. With these internal dynamics, I think Turkey will continue to grow and move forward.

Actually, our biggest goal right now is to grow our petrochemical investments in Turkey. To expand the investments we have started. In terms of investment, I think Turkey is currently one of the most attractive regions in the world. So Turkey still has a lot of room to develop, and we are investing in our country as much as possible with all our means, bringing what we earn abroad back to Turkey. That has always been the foundation of Rönesans Gayrimenkul Yatırım. We started by earning abroad and buying real estate in Turkey, developing them, and that's how we reached today's size.

In petrochemicals, now petrochemicals is of course a part of Rönesans Gayrimenkul Yatırım, a separate company, a separate business line. Unfortunately, as Turkey, we cannot take the place we deserve in the world economy in petrochemicals. While we constitute about 1% of the world economy, in petrochemicals we are only at 0.3%. We have a very serious road ahead. Turkey has a very serious market there. We don't have raw materials, but we have a market. So we will bring the market and invest in Turkey so that the added value remains in our country, and we will provide the added value in Turkey.