Jonathan Kern

GE Real EstateGrowing in Turkey: 

GE Real Estate Growing in Turkey Jonathan Kern Chief Investment Officer, GE Real Estate March 23, 2007

GE Real Estate … a global real estate investor: 

%T GE Real Estate … a global real estate investor Present in 25 countries with 44 offices worldwide and growing United States South Korea Norway Italy France Canada United Kingdom Slovakia New Zealand India Denmark Bulgaria Sweden Portugal Mexico Hungary Czech Republic Turkey Spain Poland Japan Germany China Australia France UK Central Europe Nordic Iberia Italy Australia Korea Japan US Germany Mexico Canada 1970 1986 1990 1995 1997 1998 1999 2000 2001 2003 2005 India China 2006 Turkey 2006 Assets ($bn): $53.8 $27.8 52% $5.90 11.0% 2006 Net Earnings ($bn): $1.8 $1.2 67% $0.17 9.5% Total Global %T 1972 Emerging

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Size and Ranking of Largest Countries (Nom. GDP ’05) 4 Brazil: $0.8 13 Mexico: $0.8 12 India: $0.8 14 Russia: $0.8 9 Cen. Eur: $0.9 11 Sth Korea: $0.8 4 China: $2.2 Brazil: $0.8 13 Mexico: $0.8 12 India: $0.8 14 Russia: $0.8 16 Cen. Eur: $0.5 11 Sth Korea: $0.8 Plan to Enter Still researching Entered 10 10 Emerging Markets Growth Financial Projection ($MM) Turkey: $0.4 9 19 SE Asia: $0.5 17 Central Europe: Poland, Czech Rep., Hungary. SE Asia: Philippines, Thailand, Singapore, Malaysia.

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Ability to grow quickly Ability to achieve/acquire scale large enough to be meaningful Developed Financial Markets Reasonably active capital markets that allow us to raise funds locally Tactical Feasibility Flexibility and standards to operate as a foreign investor with access to credible local partner Transparent legal framework that recognizes and protects owners’ (local & foreign) property rights Established Rule of Law Stable Political Environment Industrialized economy in a stable political environment Criteria for Foreign Investment GE Real Estate Criteria     

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Why we like Turkey … Positive country prospects Stable political environment Expanding RE market Strong GDP growth at 5.2% in 2006 Inflation under control (9.6%), stabilizing currency Attractive demographics … 50% < 30-yr 75 MM population … second largest in Europe AKP government holds large majority Political & economic reforms … Independent CB Potential EU accession and meeting IMF targets Moody’s Ba3 (sta.); S&P BB- (pos.); Fitch BB- (pos.) Rising demand for quality real estate … supply low Per capita retail GLAs below EU averages Leases can be denominated in EUR, USD Established REIT regime for over 10 years

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Doğuş-GE REIT/GYO… our primary investment vehicle in Turkey Future for GERE in Turkey Why Garanti GYO ? Before Investment focus Ownership structure Prior GE experience with Doğuş Group - NBCU, GE Consumer Finance Successful track record of Garanti GYO - Experienced development team Strengths of Doğuş relevant to RE - Real Estate, construction, lodging, banking Access to existing portfolio - Well positioned diversified assets Doğuş’s vision to grow Real Estate - Desire to position as 5th business line GERE’s vision to grow in Turkey - Garanti REIT stake acquired by GE Cons Fin. Residential for sale development Retail development Selective investment in office Istanbul and other key cities Targeting $400-$500MM vehicle over the next 'few' years. Renamed: Doguş-GE REIT/GYO as of March 22, 2007

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Investing environment … retail & office International retailers seeing Turkey as a high potential new market Lowest shopping center penetration in Europe (GLA per 1,000 people at 25 in 2005) Economic development/ increased GDP per capita Increasing mobility of the population (i.e. car ownership) Retail Office Istanbul CBD Class A office trends GLA per 1000 population -2005 Future demand drivers Future demand drivers Growing MNC’s and local firms … demanding Class A office space where it matters Fractioned ownership structure of older vintage Limited availability of existing assets and land for development in CBD Expecting rents , vacancies , land prices 

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Annual housing requirements 300,000 units in Istanbul Significant supply shortage given rising demand for new houses in major cities: Improved middle class economic conditions Increasing urbanization of population Demographic fundamentals Easier residential credit, mainly driven by lower interest rates/CPI under control New mortgage law passed … further open up consumers accessibility to credit Land … hard to come by for large projects Investing environment … residential Strong demographics driving demand Future demand drivers Scarce land … developing the perimeters

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Turkey vs other emerging markets … Relative Risk Relative size of opportunity Low Low High High Poland Turkey Argentina China Russia Hungary Mexico S. Korea Plan to enter Still researching Entered Bubbles: GDP size India Source: GERE assessment Brazil SE Asia

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Global Issues Local Issues Still a long road ahead? Will the best of times end? + Strong GDP growth + Abundant capital + Virtual absence of risk premia + Real estate becomes core asset class + Solid recovery, but … - Real interest rates still high - Unemployment still high - Slow down of EU momentum +/- Upcoming elections How deep is demand? What concerns us … National Issues Ripples or thunder storms?

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Strong secular democracy for over 80 years Established rule of law … strong ownership rights Direction towards EU … reforms & institutions Independent Central Bank Strong demographics … growing middle class Fast growing economy … huge potential Real estate historically a safe haven … but we are in Turkey for the long-run Well cemented foundation that we trust

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Caution Concerning Forward-Looking Statements: This document contains “forward-looking statements”— that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest and exchange rates and commodity and equity prices; the commercial and consumer credit environment; the impact of regulation and regulatory and legal actions; strategic actions, including acquisitions and dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. Q&A