Four major banks have taken over a 49 percent stake in İstanbul’s Galataport project following a debt restructuring agreement. The development, which stretches 1.2 kilometers along the Bosphorus from Karaköy to Fındıklı, has faced public opposition due to the privatization of the waterfront.
Garanti BBVA, Yapı Kredi, İşbank, and the Industrial Development Bank of Turkey (TSKB) announced the agreement in a joint statement to the Public Disclosure Platform (KAP). According to the restructuring deal, Doğuş Holding will transfer 49 percent of its shares in Galataport to the creditor banks.
Under the agreement, Garanti BBVA will acquire 12.28 percent of the shares, Yapı Kredi 13.2 percent, İşbank 7.18 percent, and TSKB 5.23 percent. Doğuş Holding will retain a buyback option for the transferred shares for a period of three years. However, the company also holds debts with Ziraat Bank and QNB.
1 billion euros in loans
Doğuş Holding began construction on the Galataport project in 2016, which was criticized as “a betrayal of İstanbul” due to its privatization of a public waterfront. The project, which includes a cruise port and shopping complex, was originally slated for completion in 2018 but was delayed until 2021.
The financing for the project came from Yapı Kredi, Ziraat Bank, Garanti, QNB, İş Bankası, and TSKB. Doğuş Holding secured a 1.02 billion euro loan with a 14-year term and a 3.5-year grace period. Reports suggest the debt has since grown to 1.5 billion euros amid repayment difficulties.
Bloomberg reported last year that Ferit Şahenk, owner of Doğuş Holding, had been in discussions with Qatar’s sovereign wealth fund to sell Galataport due to mounting financial pressures. In previous years, Doğuş Holding sold its 30 percent stake in İstanbul’s İstinye Park to the Qatari fund and its shares in Garanti Bank to BBVA.
Doğuş Holding secured the 30-year Galataport tender in 2013 with a 702 million dollar bid. (HA/VK)
