Istanbul Office Market General Overview

4LAST QUARTER ISTANBUL OFFICE MARKET GENERAL OVERVIEW

2014 N 32 www.propin.com.tr PROPIN HAS OPERATED FOR TEN YEARS AS AN EXPERT IN THE OFFICE MARKET THANKS FOR YOUR BELIEF AND SUPPORT OVER TEN YEARS.

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PROPIN has been providing highly-specialized agency and consulting services with a focus on Turkey’s Office Market to office users, investors, developers and property owners with a comprehensive range of real estate services since 2005. PROPIN’s customers can rely on professional assistance in property scouting, advisory services and property marketing. PROPIN is also preparing the most up-to-date Office Market reports for your investment decisions

04 SUMMARY AND FORECASTS

06 ECONOMIC OVERVIEW

09 VACANCY RATES

12 AVERAGE RENTAL RATES

16 CHANGES IN OFFICE STOCK

18 TAKE-UP

This document has been prepared by Propin. All rights reserved. No part of this publication or any of its content may be reproduced, copied, modified and/or adapted for use without the prior written consent of PROPIN. SUMMARY AND FORECASTS

Below is the summary of the latest data from the Istanbul Office Market in the fourth quarter of 2014.

The general vacancy rate for Class A office buildings in the Central Business District (CBD) dropped to 22.3%. For Class B office buildings, the vacancy rate was around 8.8%. The average rent for Class A office buildings in the Central Business District was US$ 33 /m² /month and for Class B office buildings it was US$ 16.6 /m² /month.

The vacancy rate for Class A office buildings in Out of CBD-Europe decreased to 12.7%. The average rent for Class A office buildings was US$ 20.3 /m² /month.

The vacancy rate for Class A office buildings in Out of CBD-Asia climbed to 15.2%. The general average rent for Class A office buildings was US$ 22 /m² /month.

In the fourth quarter of 2014, the highest prime rent was seen in Levent, with US$ 54 /m² /month.

4 www.propin.com.tr The Istanbul Office Market saw a year of fluctuation in 2014 owing to the effect of the mayoral and Presidential elections. The market was active like the previous year with pre-leases and corporate acquisitions occurring in the first quarter of 2014. Because of the Presidential elections in the third quarter, the market remained static for some time. Several companies put their moving process on hold because of the uncertainties in the market. Despite the two important elections being held during the year, the take-up volume at the end of 2014 had increased by 10% from 2013.

Demand for the newly added office areas in the CBD remained intense. The total amount of take-up totaled 196,000 m². It was observed that the transactions occurring in the CBD constituted 53% of the total transaction volume of Istanbul.

In the first quarter of 2014, the year saw a quick start in the market because of the rental deals and acquisitions in the office buildings which were in the final stages of their construction. The renting of 60,023m² in Torun Tower in Zincirlikuyu-Esentepe- Gayrettepe by Denizbank was the most remarkable rent transaction of the year.

Having searched for an office area for an extended period of time, Turkcell finally found it. This transaction left its mark in the last quarter of 2014. 35,000 m² of office area in RonesansBiz Kucukyali, which is represented by Propin, was the largest office area rented on the Asian side in 2014.

During 2014, especially in the CBD, the new generation buildings that went into operation satisfied the long-term demand for large-scale office areas in the market. 45% of the rental deals and acquisitions during the year measured above 10,000 m². This statistic is one of many indicators that proves the existence of demand for large-scale office areas.

In the CBD, a notable growth in the stock occurred. The buildings added to the stock in Levent in the first quarter and in Zincirlikuyu-Esentepe-Gayrettepe in the third quarter drove up the vacancy rate. The renting out of new generation buildings, however, became a countervailing factor vis-à-vis the stock growth. As a result, the vacancy rate in the CBD did not see a sharp rise.

The vacancy rate in Class A office buildings in Levent dropped in the last quarter of 2014 to reach 9.5%. Especially the rent deals in Levent 199 and River Plaza, which are from the new generation buildings that later went into the stock, played a part in this decrease.

The average rent for Class A office buildings in the CBD rose 25% in the previous four years and maintained its upward trend during 2014. With this increase, the average rent rate became US$ 33/m²/month in the fourth quarter. The main reason for the rise in the average rent was that asking prices for the new office areas which were added to the stock in Zincirlikuyu-Esentepe- Gayrettepe became higher than the average of the district.

Along with the twelve business districts, the inclusion of the ‘Developing Office Districts’ in the stock pushed the Istanbul Office Market to 3.2 billion m² in 2013. Especially with new office areas appearing in the CBD, the total area of office stock in Istanbul reached this number. We are forecasting that this growth will continue and by the end of 2017, it will rise to 5.7 billion m². We cannot estimate the total of square meters of the new office areas that will be added to the stock by 2018. It is expected, however, that the new office area added to the stock will be 600,000 m² following the entrance of the Istanbul Financial Center (IFC) in West Atasehir to the market in the first quarter of 2018.

3.5

3 2.5 2 1.5 1 0.5 0 July’14 July’13 May’14 May’13 April’14 April’13 June’14 June’13 March’14 March’13 August’14 August’13 January’14 January’13 October’14 October’13 February’14 February’13 December’14 November’14 December’13 November’13 September’14 September’13

TRY/USD TRY/EUR EUR/USD

FIGURE NO.1 SOURCE: THE CENTRAL BANK Although Turkey’s economy concluded the final quarter of 2014 under the positive effect of the decline in oil prices, by November 2014 the INFLATION real sector’s expectations and consumer confidence had reached their lowest points in four years. In the last quarter, the drop in consumer CPI ended up in a more positive position than predicted, with a value of confidence, the Central Bank’s tight monetary policy, and real sector’s 8.17% in December 2014. This was the lowest level of the previous ten lower expectations were points in question. Until the general elections, months. there will be a wait-and-see approach amongst the economic actors. The In December, the monthly-based PPI also decreased. Year-to-year inflation first months of 2015 are expected to not see much activity because of the global economy, domestic politics, and developments in foreign policy. of PPI, with a rate of 6.36%, reached its lowest level of 2014.

The economy grew by 3.3% in the first half of 2014 and continued its tempo in the second half of the year with 3% growth. Along with a decline in investments, the inertia of consumption expenditures continued during MONETARY POLICY the second half of the year. It was observed that the growth contribution of net exports decreased. The level of 3% in growth is forecast to go on in the The Monetary Policy Committee increased the policy rate to 10% from first months of 2015. Positive decomposition in the financial markets for 4.5% at an interim meeting on 28 January 2014. While there were no Turkey has not been reflected in growth. changes in the period immediately following this meeting, the Committee decreased the rate by 50 basis points in May. While the process of a policy rate increase at the FED is approaching, the Turkish Lira is under pressure of devaluation. On the other hand, the Turkish Lira faces appreciation pressure because of the positive decomposition The Committee again lowered the rate in June from 9.5% to 8.75% resulting from the decline in the oil prices and the influx of hot money. In (a 75 basis point decrease), and then to 8.25% (a 50 basis point drop) in the short-term, the tendency for the Turkish Lira to appreciate is going to July. There was no further change following the July action. be more dominant. ECONOMIC JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 2012 2013 INDICATORS ‘14 ‘14 ‘14 ‘14 ‘14 ‘14 ‘14 '14 ‘14 ‘14 ‘14 '14

GDP (%) 2.2 3.6 ------3.3*

GDP (Per Person) 10,459 10,807 ------10,537*

Population 75.6 76.5 ------77.7 (Million)

BIST-100 Index 78,208 67,801 61,858 62,553 69,736 73,872 79,290 78,489 82,157 80,313 74,938 80,580 86,169 85,721

Unemployment 9.2 9.7 10.3 10.2 9.7 9 8.8 9.1 9.8 10.1 10.5 10.4 - - Rate (%)

Exchange Rate 1.79 2.13 2.27 2.22 2.16 2.12 2.10 2.13 2.14 2.16 2.28 N/ A 2.21 2.34 (TRY/ USD)

Exchange Rate 2.3 2.94 3.08 3.05 2.98 2.03 2.85 2.90 2.86 2.85 2.88 2.77 2.76 2.83 (TRY/ EUR)

Policy Rate (%) 5.50 4.50 10.00 10.00 10.00 10.00 9.50 8.75 8.25 8.25 8.25 8.25 8.25 8.25 (One-week Repo Rate)

Inflation (%) 6.2 7.4 7.75 7.89 8.39 9.38 9.66 9.16 9.32 9.54 8.86 8.96 9.15 8.17 (End-Year)

FDI (Million USD) 12,387 10,200 6.866** - -

FDI Increase -21.30 -17.70 -8.91 - - Rate (%) *Expected by Ministry of Economy TABLE NO.1 SOURCE: TSI, Ministry of Economy **Data for between January-October

6 www.propin.com.tr ISTANBUL OFFICE MARKET DESCRIPTIONS

Explanation of some of the terms used in the Propin Office Market FOR RENT Atasehır No.2 Overview are as follows BUYUKHANLI Class A Office Buildings: PLAZA These buildings have a modern technical and mechanical infrastructure, • Close to Istanbul Financial Center fire safety, generators, parking areas and professional building [IFC], at the intersection of the E-5 management. They have the best location and the highest rent value in and TEM highways

the city’s office market. • 17,000 m² office area

Class B Office Buildings: • 1,200 m² floor areas When compared to Class A office buildings, Class B office buildings • Walking distance to the Kozyatagi have a lower rent and sale value within the same market. If this type of Subway Station building is new, it possesses an ordinary design; if the building is old, it • Users: Peugeot, Herbalife, has been enhanced to look better. Sırma, Danone, Schneider Electric

Unit Price: This term represents the ratio of total asked rent value to gross areas No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information for rent. Rentable Area: Vacancy Rate: This term refers to the total area which is currently being marketed This is the ratio between total vacant areas and total office areas. during a certain time period. The term covers all sorts of areas, whether the land is vacant, occupied or suitable for subleasing in the future. Take-up: This is a gross figure representing the total floor area known to have Rent Average: been let or pre-let, sold or pre-sold, to tenants or owner-occupiers The rental average is the weighted average of the rent of the vacant within a specified period of time. It does not include any area that is areas. The weight coefficient of the rental prices is calculated in under offer. A property is taken up when the contract is signed. accordance with the total office area and the vacant area. Listing prices are used in the calculations. Pipeline Projects: This project refers to the supply of a particular type of real estate Users: asset that is in the planning or construction phase, yet not ready for The companies of the current office users of the building. occupancy. Office User/Tenant Representation: Closing Price: The mediator who represents the interests of the tenant in a typical This is the rental price which has been agreed upon between the renting operation is referred to as the tenant representative. property owner and the tenant and placed in the contract. Listing Price: The rental price requested by the property owner for the rental area is the listing price. The price can change as a result of negotiations. FOR RENT Levent No.1 Landlord Representation: The mediator who represents the interests of the property owner SEKER TOWER in a typical renting operation is referred to as the property owner • Walking distance to Buyukdere representative. Avenue and subway Common Areas: • 15 office floors; 25,000 m² total office area All areas including the main lobby, lift lobbies on the floors, corridors between rentable areas, toilets outside of the offices, and fire exit • Floor area ranges from 500 m² to stairs shared by the Occupiers in the building are the common areas. 1,950 m²

• Date of completion Pre-Rented Area: 1st quarter of 2015 The amount of area in a building that has been rented prior to the end • Users: Sekerbank, date of the construction and prior to occupancy permit date is the pre- Seker Bilisim rented area.

No agency service charge Completion Date: Please click on www.propin.com.tr for other properties we represent and for detailed information This refers to the completion date of the construction of a building.

When analyzing the office areas In Istanbul, there are twelve main districts with a high office building density. In this report, these office districts are delineated and determined by taking the with respect to international location and user profiles into account. standards, the city is divided Istanbul’s CBD starts at Barbaros Boulevard, continues along Buyukdere Avenue and finishes in the Maslak district. This axis, named the CBD, includes Levent, into a “Central Business District” Etiler, Maslak, Zincirlikuyu-Esentepe-Gayrettepe and Besiktas-Balmumcu. (CBD) and “Out of Central Business Office districts located outside of these areas are defined as Out of CBD. Due to the geographic layout of Istanbul, Out of CBD is divided into two main categories: Districts” (Out of CBD). The CBD Asia and Europe. is a district category densely In this context, Out of CBD-Europe includes the districts of Taksim-Nisantasi, Sisli-Fulya-Otim and the vicinity surrounding the Airport. Out of CBD-Asia populated with office buildings consists of Kozyatagi, Altunizade, Kavacik and Umraniye. and a service sector, where There are Developing Office Districts found on both the Asian and European sides of the city. While Kagithane and Bomonti-Piyalepasa are located in Europe, pedestrian-vehicle traffic is Kartal-Maltepe and Atasehir are located in Asia. hectic, and the demand is the Four districts, shown with stars on the map below, are the ‘Developing Office Districts’ in the Istanbul Office Market. The data related to these four districts highest. will be illustrated with figures in the coming reports.

Sarıyer 3rd BRIDGE PROJECT

EUROPEAN SIDE Eyup Beykoz ASIAN SIDE

Sisli Ayazaga

Alibeykoy AYAZAGA Dam 3 MASLAK G.O.Pasa

2nd BRIDGE 11 KAVACIK Kagıthane CELİKTEPE LEVENTETİLER CAGLAYAN 2 Esenler 1 BEBEK Elmalı 15 Dam M.KOY Z.KUYU OKMEYDANIE.TEPE 4 ARNAVUTKOY 7 G.TEPE ORTAKOY 5 BALMUMCU Sisli 1st BRIDGE 16 Bayrampasa BEYLERBEYİ Bagcılar 6 Besiktas Eyup TAKSİM Omerli Dam Beyoglu K.cekmece 12 Umraniye 8 10 Uskudar Eminonu ALTUNİZADE CAMLICA Gungoren ACIBADEM Kucukcekmece Lake Bahcelievler Fatih

Z.burnu 14 Atasehir Kadıkoy ATATURK Bakırkoy AIPORT KOZYATAGI 9

Maltepe Sultanbeyli

LEGEND ISTANBUL OFFICE DISTRICTS DISTRICT CATEGORIES

E-5 Highway 1 LEVENT 2 ETİLER E-80 Highway 3 MASLAK CBD Pendik 4 Z.KUYU - E.TEPE - G.TEPE 13 5 BESİKTAS - BALMUMCU SABİHA GOKCEN Highway Project 6 TAKSİM - NİSANTASI Kartal AIPORT 7 SİSLİ - FULYA - OTİM OUT OF CBD / EUROPE Exit 8 HAVAALANI

9 KOZYATAGI County Border 10 ALTUNİZADE 11 KAVACIK OUT OF CBD / ASIA Cross 12 UMRANİYE

8 www.propin.com.tr VACANCY RATES IN THE ISTANBUL OFFICE MARKET VACANCY RATES BY DISTRICT CATEGORY SOLD OUT ! Atasehır No.3 2014 The Last Quarter RONESANS

50% TOWER • 43,000 m² total office area 40% • 1.400 m2 floor areas with the Prince’s Islands view 30% • Floor area ranges from 250 m2 22.3

20.6 • 4 m gross ceiling height 20%

15.2 • Users: Ronesans Holding, Daikin, 12.7 Allianz 8.8

10% 8.4 • Date of completion th 0% 4 quarter of 2014 CBD Out of CBD-Europe Out of CBD-Asia No agency service charge Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia Please click on www.propin.com.tr for other properties we represent and for detailed information FIGURE NO.2 SOURCE: PROPIN

The General Vacancy Rates in the Istanbul Office Market in the While the vacancy rate for Class A office buildings in Out of CBD- fourth quarter of 2014 are given in Figure 2. Europe was 12.7%, the vacancy rate for Class B office buildings was 20.6%. In the CBD, the vacancy rate for Class A office buildings was 22.3% The vacancy rates for Class A and Class B office buildings in Out of and the vacancy rate for Class B office buildings was 8.8%. CBD-Asia were 15.2% and 8.4% respectively.

VACANCY RATES BY DISTRICT 2014 The Last Quarter

50%

40% 37.1

30% 27.1 27.1 22.6 19.9 20% 19.6 15.6 14.6 14.2 13.5 12.8 11.8 11.0 10.9 11.8 9.5 9.5 9.0 9.0

10% 8.5 6.8 6.2 4.6 1.9 0% Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Otim Gayrettepe

Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia

FIGURE NO.3 SOURCE: PROPIN The average vacancy rates for Class A and B office buildings in the In Etiler, as a result of the transactions at Le Meridien Building, the twelve business districts of Istanbul are shown in Figure 3 [1]. vacancy rate dropped to 11.8%.

In Zincirlikuyu-Esentepe-Gayrettepe, the headquarters of Denizbank The vacancy rate in Class A office buildings in Levent dropped in the moved to Torun Tower in the fourth quarter of 2014. Since the bank last quarter of 2014 to reach 9.5%. Especially the rent deals in Levent vacated its other office areas and consolidated its operations in Torun 199 and River Plaza, which are from the new generation buildings that Tower, the vacancy rate in this district increased to 37.1%. later went into the stock, played a part in this decrease. Because the company moved out of office areas in Altunizade, the The vacancy rate of Maslak, which rose in the third quarter because vacancy rate increased from the third to fourth quarter, settling of the stock growth, started to fall in the fourth quarter due to the at 12.8%. rental deal closures. The vacancy rate of the Class A office buildings After the take-ups in Kavacik, the vacancy rate there dropped. In the was 22.6%. fourth quarter of 2014, the rate was 8.5% for Class A office buildings.

[1] When Tat Towers are not included in the stock, the vacancy rate in Zincirlikuyu-Esentepe-Gayrettepe drops down to 24.4%.

IN THE ISTANBUL OFFICE MARKET

CHANGES IN VACANCY RATES OF CLASS A BUILDINGS LEASED ! Kucukyalı No.5 2014 The Last Four Quarters RONESANSBIZ

35% KUCUKYALI • 47,000 m² total office area 30% • Direct connection to E-5 highway 25% 22.8 23.0 700 m distance to the subway 22.3 20% • Modern architecture and 15.2 environment-friendly design 14.5 15.2 15% 15.1 13.7 • 1,700 m2 floors with the 14.6 10% 13.4 13.5 12.7 Princes’ Islands view • Users: Bosch Gmbh, 5% Turkcell

0% • Date of completion ‘14 1.Q ‘14 2.Q ‘14 3.Q ‘14 4.Q 4th quarter of 2014

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.4 SOURCE: PROPIN No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information Figure 4 displays the changes in general vacancy rates for Class A buildings with respect to ‘District Categories’ over four quarters in 2014. CHANGES IN VACANCY RATES

In the CBD, a notable growth in the stock occurred. The buildings OF CLASS B BUILDINGS added to the stock in Levent in the first quarter and in Zincirlikuyu- 2014 The Last Four Quarters Esentepe-Gayrettepe in the third quarter drove up the vacancy rate. The renting out of new generation buildings, however, became 35% a countervailing factor vis-à-vis the stock growth. As a result, the vacancy rate in the CBD did not see a sharp rise. 30% 26.6 The vacancy rate for Class A office buildings in Out of CBD-Europe 25% 21.1 21.8 20.6 trended downwards during 2014. Even though there was a slight 20% bump in the third quarter, it continued to drop in the fourth quarter. 15% 11.4 In Out of CBD-Asia, the vacancy rate for Class A office buildings 11.2 10.5 10% showed a downward trend during the first three quarters of 2014, yet 8.8 8.4 rose slightly in the fourth quarter. 5% 8.5 6.9 6.4 0% FOR RENT Maslak No.4 ‘14 1.Q ‘14 2.Q ‘14 3.Q ‘14 4.Q CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.5 SOURCE: PROPIN AKSOY In Figure 5, the changes in the general vacancy rates for Class B PLAZA office buildings broken down into ‘District Categories’ over all four quarters of 2014 are given. • 13,800 m² total office area In the CBD, Class B office buildings’ vacancy rates fluctuated • 1,680 - 1,740 - 1,930 m² floor area option throughout 2014. In the fourth quarter, the vacancy rate increased to 8.8% owing to office user move outs in Zincirlikuyu-Esentepe- • Flat floor concept and 90% floor Gayrettepe. area efficiency • Balcony areas on every floor The vacancy rate for Class B office buildings in Out of CBD-Europe decreased in the second quarter and remained stable for the • Walking distance to subway following two quarters.

• Users: Turcas Petrol, The vacancy rate continued to be steady for the first three quarters Aksoy Holding of 2014 in Out of CBD-Asia, then dropped in the fourth quarter. After No agency service charge deal closures occurred in Kavacik and Umraniye, the vacancy rate in Please click on www.propin.com.tr for other properties we represent and for detailed information this district category decreased to 8.4%.

10 www.propin.com.tr HISTORICAL VACANCY RATES IN THE ISTANBUL OFFICE MARKET HISTORICAL VACANCY RATES OF CLASS A BUILDINGS FOR SALE-RENT Kagıthane No.6 2008 - 2014 The Last Seven Years PREMIER 50% CAMPUS OFFICE • Strategic location; close to the TEM 40% and E-5 highways, the subway, the Dolmabahce-Kagithane Tunnel

30% 28.2 • 42,200 m² total office area 23.7 21.9 22.7 • 4,500 m² total retail area 20% 19.9 19.3 19.3 19.0 17.9 18.1 17.1 16.3 15.9 16.4 • 40 - 300 m² small office units 14.6 14.1 14.5 14.7 14.6 15.1 14.8 14.4 13.6 16.2 800 - 1,000 m² middle sized offices 11.7 11.1 10.6 12.6 10% 14.0 13.2 10,000 m² office areas with 12.2 11.8 12.3 11.0 11.4 10.9 11.2 private entrances and lobby 9.7 9.3 8.9 9.3 4.8 0% • Date of completion ‘08 1.H ‘08 2.H ‘09 1.H ‘09 2.H ‘10 1.H ‘10 2.H ‘11 1.H ‘11 2.H ‘12 1.H ‘12 2.H ‘13 1.H ‘13 2.H ‘14 1.H ‘14 2.H 4th quarter of 2015

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.6 SOURCE: PROPIN No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information

The historical vacancy rates between 2008 and 2014 for Class A HISTORICAL VACANCY RATES office buildings in all ‘District Categories’, based on data provided by OF CLASS B BUILDINGS Propin, are given in Figure 6. 2008 - 2014 The Last Seven Years

The vacancy rate in the CBD for Class A office buildings was 4.8% 50% in the first half of 2008. After this period, the vacancy rate shot up 40% due to the stock growth. From the second half of 2008 to the first 33.6 32.2 32.2 30.9 29.2 31.3 30% 29.5 29.1 28.1 half of 2013, the vacancy rate hovered between 9% and 12%. The 26.5 26.6 24.7 23.8 22,9 rate then began to rise noticeably after the second half of 2013, with 21.2 17.2 19.0 20% 16.8 17.3 the addition of the new generation office buildings to the stock. The 16.1 16.2 15.4 11.4 11.0 11.3 15.0 14.9 8.8 9.1 9.4 vacancy rate reached 22.7% at the end of 2014. The fact that the 10% 12.9 10.9 7.5 7.4 7.7 7.7 7.7 7.6 vacancy rate of Class A office buildings in the CBD had doubled in last 5.2 6.6 6.4 6.8 0% two years warrants attention. ‘08 1.H ‘08 2.H ‘09 1.H ‘09 2.H ‘10 1.H ‘10 2.H ‘11 1.H ‘11 2.H ‘12 1.H ‘12 2.H ‘13 1.H ‘13 2.H ‘14 1.H ‘14 2.H

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe

FIGURE NO.7 SOURCE: PROPIN In Out of CBD-Europe, the vacancy rate for Class A office buildings The changes between 2008 and 2014 in vacancy rates for Class showed a constant decline, beginning in the first half of 2008 and B office buildings according to ‘District Categories’ are shown in lasting until the first half of 2011. Especially in the Airport District, the Figure 7. renting out of large-scale office areas caused the rate to decrease The vacancy rate for Class B office buildings in the CBD started to considerably in the second half of 2011. With the growth in the stock, fall after a remarkable rise in 2009. The same vacancy rate that had the vacancy rate in Out of CBD-Europe fluctuated during the last plummeted to 6.4% in the first half of 2012, climbed to 7.7% in the three years. second half of the year. The vacancy rate in this district category remained stable after this period.

Within the last seven-year period, the vacancy rates in Out of CBD- In Out of CBD-Europe, Class B office buildings’ vacancy rate Asia in Class A office buildings went up and down. The stock growth decreased between 2010 and 2012. The rate, which was 28.1% in 2013, dipped down to 21.2% in the second half of 2014. and the high demand for the district were the reasons for these fluctuations. By the year 2013, demand for office areas in Out of CBD- In Out of CBD-Asia, the vacancy rate for Class B office buildings Asia increased. Furthermore, one can observe that the vacancy rate fluctuated in a way similar to the rate of Class A office buildings. dropped to 14% in 2014. There was a sharp fall in the rate after the second half of 2011.

$70

$60 54 50 $50 49 48 45 45 45 45 45 44 44 41 41 40 40 40 $40 40 38 38 38 35 35 35 35 33 33 31 31 31 31 31 31 30 30 30 $30 30 28 28 28 28 27 26 25 25 23 23 20

$20 18

$10

$0 m²/mo Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Otim Gayrettepe

14-1Q 14-2Q 14-3Q CBD (Buyukdere AVE)14-4Q Out of CBD - Asia 14-4Q Out of CBD - Europe 14-4Q

FIGURE NO.8 SOURCE: PROPIN A quarterly comparison of the 2014 Listing Prices of Prime Rent by Two prime rent figures from this graph deserve attention: US$ District in the Istanbul Office Market is shown in Figure 8 [2]. 50 /m² /month in Taksim-Nisantasi, which is in Out of CBD-Europe; and, US$ 48 /m² /month in Sisli-Fulya-Otim.

Levent, which is in the CBD, was the district which held the In Out of CBD-Asia, Umraniye had the highest prime rent rate with an highest prime rent asked in the fourth quarter of 2014. Although amount of US$ 31 /m² /month. Except Kavacik, the rent level of the US$ 45 /m² /month in the preceding quarter, the prime rent jumped other districts in Out of CBD-Asia remained stable. to US$ 54 /m² /month in the last quarter. Besides this increase in the CBD, a rise to US$ 45 /m² /month in the prime rent in As in previous periods, the Airport District is the district with the lowest Zincirlikuyu-Esentepe-Gayrettepe was observed. prime rent rate.

[2] Rental rates in the chart are the list prices stated by the landlords to the market. The figures related to the buildings which have been constructed and added to the stock are reflected as well. The average rental rates in the districts are shown on page 13.

FOR RENT Maslak No.7 FOR RENT Maslak No.8

KIM III GROUPAMA MASLAK PLAZA • 16 floors; 16,155 m² • 16,980 m² total office area total office area • 635 m² floors • 960 m² office floors • Ready to use, decorated • 10 minutes walking distance to subway • Employee shuttle and cafeteria • Walking distance to subway • Date of completion 1st quarter of 2015 • Users: Groupama Insurance, Bogazici Computer, Huawei

No agency service charge No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information Please click on www.propin.com.tr for other properties we represent and for detailed information

12 www.propin.com.tr AVERAGE RENTAL RATES IN THE ISTANBUL OFFICE MARKET AVERAGE RENTAL RATES BY DISTRICT CATEGORY FOR RENT Levent No.9 2014 The Last Quarter APA NEF

$50 • At the center of finance and business world $40 • 12,100 m² total office area 33.0 $30 • 730 m² floors 22.0

20.3 • On Buyukdere Avenue and $20

16.6 1 minute walking distance 14.4 13.6 to subway $10 • Opportunity to rent an $ 0 office in flexible sizes m²/mo CBD Out of CBD-Europe Out of CBD-Asia NoNo agency agency service service charge charge Please click on www.propin.com.tr for other properties we represent and for detailed information Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia Please click on www.propin.com.tr for other properties we represent and for detailed information

FIGURE NO.9 SOURCE: PROPIN

The average rental rates by ‘District Category’ in the Istanbul Office In Out of CBD - Europe, the average rent for Class A office buildings Market in the fourth quarter of 2014 are given in Figure 9. was US$ 20.3 /m² /month and the average for Class B office buildings US$ 13.6 /m² /month. In the CBD, the average rent for Class A office buildings was An average rent of US$ 22 /m² /month for Class A office buildings and US$ 33 /m² /month in the fourth quarter of 2014 and of US$ 14.4 /m² /month for Class B office buildings was observed in US$ 16.6 /m² /month for Class B office buildings. Out of CBD-Asia. AVERAGE RENTAL RATES BY DISTRICT 2014 The Last Quarter

$50

$40 39.7 38.5 32.9 33.0 32.1 30.6

$30 28.8 27.0 24.3 23.2 22.9 22.0

$20 19.7 17.1 17.7 16,7 16.6 16.1 15.7 15.1 13.8 11.2 $10 11.0 8.7

$0 m²/mo Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Otim Gayrettepe

Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia

FIGURE NO.10 SOURCE: PROPIN Figure 10 shows the average rental rates for Class A and B office average rental rate climbed to US$ 32.9 /m² /month. buildings in twelve business districts of Istanbul [3]. In Besiktas-Balmumcu, the average rental rates retreated to US$ In Levent, the average rent for Class A Office buildings did not change, 32.1 /m² /month due to the lower rent asked for office areas which had resting at $ 38.5 /m²/ month in the fourth quarter. re-entered the rental market.

In Etiler and Maslak, which are both in the CBD, average rental rates In Altunizade, the asking rents for the office areas recently vacated remained stable from the third to the fourth quarter due to the fact that were lower than the average of this district. For this reason, the average there were no changes in the listing prices in the market. rental rate for the Class A office buildings in the fourth quarter decreased to US$ 22 /m² /month.

In Zincirlikuyu-Esentepe-Gayrettepe, the asking rent for the recently In Kavacik, the average rental rate declined to US$ 16.7 /m² /month as added office areas was higher than the district average; therefore, the a result of the landlords’ readjustments to the rents.

[3] The districts’ average rental rents are calculated by landlords on the basis of listing prices declared to the market in their evaluations.

All rights reserved. 13 CHANGES IN AVERAGE RENTAL RATES IN THE ISTANBUL OFFICE MARKET CHANGES IN AVERAGE RENTAL RATES OF CLASS A BUILDINGS FOR SALE-RENT Kagıthane No.11 2014 The Last Four Quarters BAB PLAZA $35 32.0 32.7 33.0 • 6,900 m² total office area 31.0 $30 • Proper for single or multiple users $25 21.3 21.4 22.0 20.4 • 815 m² - 970 m² floor areas $20 19.9 19.2 20.3 19.0 $15 • High visibility on Cendere Street

$10 • Convenient transportation connections $5

$0 • Date of completion m²/mo ‘14 1.Q ‘14 2.Q ‘14 3.Q ‘14 4.Q 2nd quarter of 2015

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.11. SOURCE: PROPIN The changes in the average rent for Class A office buildings grouped by ‘District Categories’ during the four quarters of 2014 are shown in No agency service charge Figure 11. Please click on www.propin.com.tr for other properties we represent and for detailed information

The average rental rate for Class A office buildings in the CBD showed an upward trend during 2014. In the last quarter, the average was US$ CHANGES IN AVERAGE RENTAL 33 /m² /month. RATES OF CLASS B BUILDINGS In Out of CBD-Europe, the average rate for Class A office buildings, which 2014 The Last Four Quarters showed incremental drops during the year, rose in the fourth quarter

of 2014. $35

In Out of CBD-Asia, the average rate which had remained stable from $30 second to third quarter, increased in the fourth quarter. $25

$20 17.0 FOR RENT Umranıye No.10 16.2 16.9 16.6 15.3 14.4 $15 13.7 15.6 13.6 13.6 $10 13.2 13.2

BENGI $5

BUSINESS CENTER $0 m²/mo ‘14 1.Q ‘14 2.Q ‘14 3.Q ‘14 4.Q

• Close distance to the TEM and CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe

E-5 highways FIGURE NO.12 SOURCE: PROPIN • 9,200 m² office area

• Stand-alone building for Changes in the average rental rates for Class B office buildings grouped a single user in ‘District Categories’ throughout four quarters of 2014 are shown in Figure 12. • 780 m² floors The average rent for Class B office buildings in the CBD remained • Walking distance to planned Umraniye Cakmak Subway Station stable, as no changes were observed after the second quarter of 2014.

• Date of completion In Out of CBD-Europe, there weren’t any notable changes in the average 1st quarter of 2015 rental rate of Class B office buildings in the year 2014.

No agency service charge The average rent in Out of CBD-Asia, which had seen an upward trend Please click on www.propin.com.tr for other properties we represent and for detailed information in first three quarters of 2014, plunged to US$ 14.4 /m² /month.

14 www.propin.com.tr HISTORICAL AVERAGE RENTAL RATES IN THE ISTANBUL OFFICE MARKET HISTORICAL AVERAGE RENTAL RATES OF CLASS A BUILDINGS FOR RENT Zıncırlıkuyu No.12 2008-2014 The Last Seven Years ISTANBLOOM

$50 • 3 office floors; 9,354 m² total office area $40 32.9 • Opportunities to rent by floor or 31.6 30.7 30.7 31.5 29.1 30.1 29.4 $30 27.3 27.7 27.5 28.4 entire office area 26.5 26.2 21.7 20.1 20.4 20.2 21.0 20.9 $20 19.0 18.6 19.2 18.8 19.8 19.4 18.8 19.3 • 1,944 m² , 2,797 m² , 4,613 m² 19.9 19.7 18.2 18.6 19.6 17.4 17.8 17.7 17.7 17.9 17.2 16.8 18.2 floor area options $10 14.1 • Large capacity for car parking

$0 • Inner gardens and terraces m²/mo‘08 1.H ‘08 2.H ‘09 1.H ‘09 2.H ‘10 1.H ‘10 2.H ‘11 1.H ‘11 2.H ‘12 1.H ‘12 2.H ‘13 1.H ‘13 2.H ‘14 1.H ‘14 2.H on the floors CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.13 SOURCE: PROPIN • Walking distance to subway

No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information The changes between 2008 and 2014 in the average rental rates for Class A office buildings divided into ‘District Categories’ are given in HISTORICAL AVERAGE RENTAL Figure 13. RATES OF CLASS B BUILDINGS 2008-2014 The Last Seven Years The average rental rate in the CBD for Class A office buildings increased in 2008. The rental rates, which had been falling in the first half of 2009 $25

due to the effect of economic crisis, hit the lowest point of the last seven $20 18.1 years in the first half of 2010, with an average of US$ 26.2 /m² /month. 16.6 17.0 17.0 16.6 16.8 15.5 15.5 15.8 15.3 14.8 14.4 14.8 15.0 15.0 $15 13.8 14.1 14.2 14.5 13.2 13.6 13.1 12.8 13.4 13.4 12.5 12.2 12.2 12.7 12.2 11.0 11.9 10.3 10.7 10.3 Average rental rates, which started to climb after the second half of 10.1 9.5 9.7 $10 8.9 9.2 9.4 9.3 2010, shot up to US$ 32.9 /m² /month in the fourth quarter of 2014. $5 Especially the addition to the stock of the new generation, high rent

asked Class A office buildings (after their construction was completed) $0 ‘08 1.H ‘08 2.H ‘09 1.H ‘09 2.H ‘10 1.H ‘10 2.H ‘11 1.H ‘11 2.H ‘12 1.H ‘12 2.H ‘13 1.H ‘13 2.H ‘14 1.H ‘14 2.H m²/mo is the main reason for this rise. As seen in the graph, the average rental CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe rate in the CBD increased by 25% in the last four years. FIGURE NO.14 SOURCE: PROPIN The changes in the average rental rate for Class B office buildings between 2008 and 2014 based on ‘District Categories’ are given in In Out of CBD - Europe, the average rental rate of Class A office buildings Figure 14. showed a sharp rise in the second half of 2008. After this period, it was The average rental rate for Class B office buildings in the CBD were up steady until the end of 2011. The Out of CBD-Europe average rental rate and down during this seven-year period. In the second half of 2013, it had fluctuated between 2011 and 2013. There were no changes in the reached its highest level (US$ 18.1 /m² /month). Class A office buildings’ average rate in 2014. The average rent for Class B office buildings in Out of CBD-Europe remained constant from 2008 until the second half of 2012. Out of CBD-Asia average rents went up and down between US$ 19 and It increased in the first half of 2013.

22/m²/month during the last seven years. They gradually started to In Out of CBD-Asia, the rise of the average rental rate carried on with climb in the first half of 2013. only slight increases throughout these years.

COMPARED STOCKS OF THE CLASS A BUILDINGS BY DISTRICT 2014 The Last Quarter DISTRIBUTION OF TOTAL OFFICE SPACE AREA IN ISTANBUL The stock figures, which present the distribution of total Class A office buildings in the Istanbul Office Market stock according to the twelve Developing Office current office districts and the four developing districts, are given in Out of Districts CBD Figures 15 and 16. CBD-Asia %9 %32 %41 The CBD [Etiler, Levent, Maslak, Zincirlikuyu-Esentepe-Gayrettepe, Besiktas-Balmumcu]; With the addition of new office buildings to the stock in the third quarter, the CBD’s share of the total stock started to increase. The stock grew in Zincirlikuyu-Esentepe-Gayrettepe in the fourth quarter; thus, the stock share of the CBD expanded to 41% in 2014.

Out of CBD-Europe [Taksim-Nisantasi, Sisli-Fulya-Otim, Airport]; In Out of contrast with the real stock increase in the CBD and Developing Office CBD-Europe Districts, Out of CBD-Europe’s share in the total stock dropped. The %18 Odakule Building, which is in Taksim-Nisantasi, is going to be used as a hotel; therefore, this building was removed from this district category’s stock in the fourth quarter of 2014. FIGURE NO.15 SOURCE: PROPIN

Out of CBD-Asia [Kozyatagi, Altunizade, Kavacik, Umraniye]; Unlike Developing Office Districts [Kagithane, Bomonti-Piyalepasa, Kartal- the previous quarters of 2014, no stock increase was seen in the fourth Maltepe, West Atasehir]; With the new office areas added to the stock, quarter. As opposed to the other district categories that raised their stock shares, Out of CBD-Asia’s share decreased from the third to the especially in Kartal, the share of the total stock increased to 9%. It is fourth quarter, eventually occupying only 32% of the total stock. expected that this trend will continue to show an upward trajectory. TOTAL CLASS A OFFICE STOCK (m2) * The areas shown with light colors indicate the vacancy ratio. 600,000 22.6%

500,000 13.5% 15.6% 9.5% 37.1%

400,000 19.9%

300,000 1 2 3 8.5% 200,000 9% 12.8% 27.1% 11.8%

100,000 14.6%

0 m² Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Gayrettepe Otim

CBD Out of CBD - Europe Out of CBD - Asia

FIGURE NO.16 SOURCE: PROPIN

FOR RENT Kavacık No.13 FOR SALE-RENT Maslak No.14 NACAR POLARIS PLAZA PLAZA • Has occupancy permit • 3,000 m²vacant office area • 4,700 m2 office area • Three consecutive floors; • Two independent enterances 1,000 m² each • 300 m2 floors • Decorated • One parking space for free per • 10 minutes walking 100 m2 office area distance to subway

16 www.propin.com.tr PLANNED GROWTH OF CLASS A OFFICE STOCK

COMPARED STOCKS OF THE CLASS ANNUAL GROWTH IN STOCK OF A BUILDINGS BY DISTRICT CLASS A BUILDINGS BY YEAR 2012 – 2017 Total Istanbul Office Stock Distribution By Year 2012-2017

In Figure 17, the amount of stock in the Istanbul Office Market 6,000,000 between 2012 and 2017 is given. In addition to the office areas added to the stock between these years, the office projects which 5,000,000 5,700,000 5,500,000 have been launched and are predicted to be added in 2015 - 2017 are considered as well. 4,000,000 4,500,000

3,800,000 Along with the twelve business districts, the inclusion of the 3,000,000 ‘Developing Office Districts’ in the stock pushed the Istanbul 3,200,000 Office Market to 3.2 billion m² in 2013. Especially with new office 2,700,000 2,000,000 areas appearing in the CBD, the total area of office stock in Istanbul reached this number. We are forecasting that this growth 1,000,000 will continue and by the end of 2017, it will rise to 5.7 billion m². We cannot estimate the total of square meters of the new office areas 0 that will be added to the stock by 2018. It is expected, however, m² 2012 2013 2014 2015 2016 2017 that the new office area added to the stock will be 600,000 m² following the entrance of the Istanbul Financial Center (IFC) in FIGURE NO.17 SOURCE: PROPIN West Atasehir to the market in the first quarter of 2018. ANNUAL GROWTH IN STOCK OF CLASS A BUILDINGS BY DISTRICT CATEGORY

EXPECTED TOTAL OFFICE STOCK DISTRIBUTION OF ISTANBUL IN 2017 EXPECTED TOTAL OFFICE STOCK DISTRIBUTION OF ISTANBUL IN 2017 2,500,000 Developing Office Districts Out of 2,000,000 CBD-Asia %20 CBD %28 %35 1,500,000

1,000,000

500,000 Out of CBD-Europe 0 m² 2013 2014 2015 2016 2017 %16

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe Emerging Districts

FIGURE NO.18 SOURCE: PROPIN FIGURE NO.19 SOURCE: PROPIN In considering the office buildings under construction and the projects it was observed that the construction projects are speeding up. The which have been launched in the Istanbul Office Market, it is possible Istanbul Financial Center (IFC) in West Atasehir, which will be in the to conclude that the stock growth in the CBD will continue, at least operation in 2018, had a role in this acceleration. When the office until 2017, as it did in the previous years. Especially with the increase buildings under construction are completed by the end of 2017, it is of stock in Levent and Maslak, we predict that the CBD’s share in the expected that approximately 110,000 m² of office area will be added total stock will be 35% by the end of 2017. to the stock in West Atasehir. Based on the low number of office investments in Out of CBD-Europe, it is expected that the share of this district category will decline to In Kartal, the development of office areas along the E-5 Highway is 16%. expanding in the new land which became available following the relocation of the industrial areas. The fact that the subway has After analyzing the pipeline projects in Istanbul, we are expecting reached the area represents a significant indication of the nature and that the share of the Developing Office Districts, which was 9% range of this expansion. From 2015 on, it is foreseen that the amount at the end of 2014, will rise to 20% at the end of 2017. office stock in Kartal will rise. In the following years, this rise in stock In West Atasehir, which is one of the Developing Office Districts, carries the risk of causing a surplus.

TAKE-UP VOLUME 2008 - 2014 SEVEN YEARS TOTAL A total amount of roughly 1.3 billion m² of 400,000 TAKE-UP: 1,330,000 1,400,000 office area was taken up between 2008 and 2014. Similar to the previous year, the market 350,000 1,200,000 was active due to pre-leases and corporate acquisitions occurring in the first quarter of 300,000 1,000,000 2014. Because of the Presidential elections in the third quarter, the market remained stable 250,000 for some time. Several companies, however, 800,000 put their moving process on hold because of 200,000 the uncertainties in the market. Despite the two 600,000 important elections (mayoral and Presidential) 150,000 being held during the year, the take-up volume at 400,000 the end of 2014 had increased by 10% from 2013. 100,000 During 2014, especially in the CBD, the new 50,000 200,000 generation buildings that went into operation 88,000 79,000 98,000 118,000 234,000 339,000 373,000 satisfied the long-term demand for large-scale 0 0 office areas in the market. 45% of the rental 2008 2009 2010 2011 2012 2013 2014 m² m² deals and acquisitions during the year measured Completed Transactions Cumulative Sum above 10,000 m². This statistic is one of many

FIGURE NO.20 SOURCE: PROPIN indicators that proves the existence of demand for large-scale office areas. TAKE-UP DISTRIBUTION BY DISTRICT CATEGORY 2014 The distribution of Take-Up across ‘District Categories’ is seen in Figure 21. These figures 2 show the distribution of take-up as approximately 200,000 196,000 TOTAL TAKE-UP: 373,000 m 373,000 m² in 2014 for the Central Business 175,000 Districts, Out of Central Business Districts, Developing Office Districts and the regions 150,000 where miscellaneous office projects have been created (off-location). 125,000 Deal closures in the CBD amounted to a total of 196,000 m² in office area. It was observed that 100,000 95,000 53% of the total take-up volume of Istanbul occurred in the CBD. 75,000 The demand for office areas on the Asian side 59,000 also continued in 2014. Total transactions closed 50,000 in Out of CBD-Asia and other office districts in Asia consisted of 36% of total take-up in Istanbul. 25,000 17,000 Having searched for an office area for an 5,000 0 extended period of time, Turkcell finally found it. Developing Off Location m² CBD Out of CBD - Europe Out of CBD - Asia This transaction left its mark in the last quarter Office Districts Office Districts of 2014. 35,000 m² of office area in RonesansBiz Kucukyali, which is represented by Propin, was the largest office area rented in Asian Side in 2014. FIGURE NO.21 SOURCE: PROPIN

18 www.propin.com.tr TAKE-UP LIST IN THE ISTANBUL OFFICE MARKET 20144 Most of the notable transactions that took place in the Istanbul Office Market during 2014 are listed in the following table.

Building Office District Gross Area (m2) Firm Agency Process

Torun Tower Esentepe 60,023 Denizbank Lease RonesansBiz Kucukyali Kucukyali 35,000 Turkcell Lease Nida Kule Atasehir West Atasehir 27,500 Viko Electrics Purchase Uniq İstanbul Maslak 17,000 MEF University Lease Vadi İstanbul Seyrantepe 16,850 Kale Kilit Purchase Maslak No/1 Maslak 12,500 Deloitte Lease Karamancı Blocks Esentepe 10,000 Turk Telekom Lease Levent 199 Levent 8,175 Odea Bank Lease Polat Plaza Levent 6,635 Turkish Bank Purchase Key Plaza Mecidiyekoy 6,000 UNDP Lease Uniq İstanbul Maslak 5,419 Roche Lease Varyap Meridian West Atasehir 5,300 Erenco - Erdemir Eregli Purchase Orjin Maslak Maslak 4,260 AIG Insurance Lease Levent 199 Levent 3,936 Merck Sharp & Dohme Lease Palladium Tower Kozyatagi 3,836 Ceva Logistics Lease Yilmaz Plaza Umraniye 3,700 Seri Information Technologies (IBM) Lease Atasehir Odak Kozyatagi 3,680 Acron Bilişim Lease Kavacık Business Center Kavacik 3,540 Erdem Holding - Genpa Purchase Uniq İstanbul Maslak 3,528 Markafoni Lease Orjin Maslak Maslak 3,185 Zurich Insurance Lease Palladium Tower Kozyatagi 3,126 Cigna Financial Pension Lease Groupama Plaza Maslak 3,000 Deloitte Lease Park Towers II Etiler 2,700 Baker & McKenzie Lease Ronesans Tower Kozyatagi 2,614 Daikin Lease Levent 199 Levent 2,600 Multi Development Turkiye Lease Nida Kule Atasehir West Atasehir 2,500 Neova Insurance Purchase Palladium Tower Kozyatagi 2,500 Cargill Lease Çamlıca Plaza Altunizade 2,350 Parker Turkiye Lease River Plaza Levent 2,200 Denton Wilde Sapte Guner Lease Safter Han Levent 2,200 Cicek Sepeti Lease Uniq İstanbul Maslak 2,196 Oracle Lease Orjin Maslak Maslak 2,130 Paksoy Law Firm Lease Orjin Maslak Maslak 2,130 YKK Metal Textile Lease Uniq İstanbul Maslak 2,092 Bonubon Lease Is Kule Levent 2,066 Amgen Pharma Lease Levent 199 Levent 1,963 Qubicon Lease Nida Kule Goztepe Goztepe 1,800 Sigorta Bilgi ve Gözetim Lease Atasehir Buyukhanlı Plaza Kozyatagi 1,818 ThyssenKrupp Asansor Lease Anel Business Center Umraniye 1,758 Avnet Technology Solutions Lease Signature Ferko Tower Levent 1,722 Fiba Capital Purchase Ofishane Kagithane 1,703 Yorsan Lease

4 Stand Alone building gross area does not include car parking areas.

Building Office District Gross Area (m2) Firm Agency Process

Buyaka Umraniye 1,690 BSH Hausgeräte GmbH Lease Is Kule Levent 1,686 Timur Real Estate Lease Beytem Plaza Sisli 1,600 Oytek Lease MM Plaza Levent 1,600 Daikin Lease Sun Plaza Maslak 1,560 Bristol-Myers Squibb Lease Balmumcu Yimtas Plaza Balmumcu 1,500 Dogu Vehicle Lease Maya Plaza Etiler 1,500 Gilead Sciences Lease Casper Plaza Umraniye 1,457 Draeger Medical Lease Altunizade Plaza Altunizade 1,450 Kaynak Holding Lease Nurol Plaza Maslak 1,400 Deloitte Lease Teknopark Kurtkoy Kurtkoy 1,400 SAP Teknopark Lease River Plaza Levent 1,369 C&A Lease Atasehir Buyukhanlı Plaza Kozyatagi 1,212 Sırma Grup Lease Atasehir Buyukhanlı Plaza Kozyatagi 1,212 Hayat Danone Lease Polat Plaza Levent 1,200 Sigorta Cini Lease Platform Merter Merter 1,192 Allianz Insurance Lease Mithat Giyim Binasi Osmanbey 1,117 Capital Markets Licencing and Training Lease Uniq İstanbul Maslak 1,113 Regus Lease Palladium Tower Kozyatagi 1,096 Plaza Cubes Lease Palladium Tower Kozyatagi 1,096 Romak Mechine Lease Palladium Tower Kozyatagi 1,096 Plaza Cubes Asia Lease Palladium Tower Kozyatagi 1,096 Lexmark Lease Sarli Business Center Mecidiyekoy 1,080 Sektorel Fair Lease Tekfen Tower Levent 1,045 Google Lease Euro Color Binası Altunizade 1,000 Eti Marketing Lease Le Meridien Etiler 1,000 Garanti Asset Management Lease Nida Kule Kozyatagi 1,000 Raintrade Petrochemistry Lease Trump Towers Mecidiyekoy 1,000 D&R Lease Beybi Giz Plaza Maslak 1,000 Vodafone Lease Office Le Martin Taksim 936 Regus Lease Enkay Plaza Umraniye 907 Sodexo Lease Kagithane Ofis Park Kagithane 904 Legrand Lease Veko GIZ Plaza Maslak 900 Ziraat Asset Management Lease Yilmaz Plaza Umraniye 900 Schaeffler Rulmanları Lease Smart Plaza Kavacik 898 Enocta Lease Sun Plaza Maslak 891 Panasonic Lease Ozyapi Ofisim Maltepe 860 Worthington Lease Key Plaza Mecidiyekoy 856 Keymed Lease Buyaka Umraniye 845 Med Pharma /Teva Lease Palladium Tower Kozyatagi 839 U.C.B. Pharma Lease Propa Plaza Zincirlikuyu 830 Atilim Factoring Lease Itower Bomonti 823 Bicakcilar Electrics Lease Beytem Plaza Sisli 800 Generali Insurance Lease Sun Plaza Maslak 780 Global Capital Lease 20 www.propin.com.tr SOURCE: PROPIN TAKE-UP LIST IN THE ISTANBUL OFFICE MARKET 20144

Building Office District Gross Area (m2) Firm Agency Process

Sun Plaza Maslak 780 Entera Lease Sun Plaza Maslak 778 Plaza Cubes Lease Sun Plaza Maslak 778 Groupe Seb / Tefal Rowenta Lease Palladium Tower Kozyatagi 778 Parlaklar Group Lease Nef Offices Dortlevent 09 4. Levent 776 Pharmaceutical Manufacturers Association Lease Avrupa Holding Altunizade 736 Regus Lease Kagithane Ofis Park Kagithane 682 Karma Advertising Lease Golden Plaza Kozyatagi 674 Biltam Lease River Plaza Levent 658 Yves Rocher Lease Astoria Esentepe 650 Pinsent Masons consultancy - Selenium Plaza Fulya 635 Bel Karper Lease Levent 199 Levent 620 Education First Lease Marmara Forum Garden Office Merter 613 Yapı Kredi Lease Ziyal Plaza Gunesli 610 Wellpoint Lease Kar Plaza Kozyatagi 600 G Technology Lease Mete Plaza Kozyatagi 600 PPD Global Lease Apa Giz Plaza Levent 570 Hay Group Lease Metrocity Levent 550 Atradius Credit Insurance Lease Maya Akar Center Esentepe 550 Akzirve Lease Palladium Tower Kozyatagi 548 Garanti Bank Istanbul Anatolian 2 RM Lease Palladium Tower Kozyatagi 548 Garanti Bank Yenisahra Branch Lease Palladium Tower Kozyatagi 548 TSKB Foundation Lease Palladium Tower Kozyatagi 548 Lenovo Lease Uniq İstanbul Maslak 548 Movida Plus Map Lease Sun Plaza Maslak 520 Seabird Airways Lease River Plaza Levent 520 Cushman& Wakefield Lease Bolkan Center Sisli 511 Toprak Holding Lease Hasoglu Plaza Kavacik 500 Fresenius Medical Care Lease Yapi Kredi Plaza Levent 500 TAYMED Medical Products/ Pharmexx Lease Polaris Plaza Maslak 500 OMK Carton / Saica Lease Noramin Business Center Maslak 472 Isikal Law Lease Nida Kule Goztepe Goztepe 450 INC Research Lease Anel Business Center Umraniye 450 Orange Business Services Lease Nida Kule Goztepe Goztepe 450 Novozymes Lease Iz Giz Plaza Maslak 450 Cefa Dif Pharma Lease Nida Kule Goztepe Goztepe 450 Croda Turkiye Lease Nida Kule Goztepe Goztepe 450 Hero Baby Lease Marmara Forum Garden Office Merter 434 Aydınlı Group Lease Meral Plaza Umraniye 430 Kimpas Lease Key Plaza Mecidiyekoy 420 Arti Project Lease Key Plaza Mecidiyekoy 417 Akton Construction Lease Itower Bomonti 392 Intertec Lease Sun Plaza Maslak 390 Global Capital Lease Sun Plaza Maslak 389 Rhea Lease

Building Office District Gross Area (m2) Firm Agency Process

Milli Reasurans Binasi Nisantasi 381 Ipeg Medical Esthetics Lease Milli Reasurans Binasi Nisantasi 381 Associated Press Lease Colakoglu Plaza Kozyatagi 375 Yılgör Mechine Construction Lease Levent 199 Levent 370 Erg Foreign Trade Lease Pegasus Evi Harbiye 370 Suda Mine Lease Uner Plaza Kozyatagi 368 Karapınar Fuel Lease Levent 199 Levent 364 European Investment Bank Lease 195 Buyukdere Plaza Levent 337 Jetro Japan Foreign Trade Lease Levent 199 Levent 329 Turgut Pharma Lease Arduman Business Center Altunizade 328 CBI Transportation Lease Papirus Plaza Kagithane 325 Brightstar Telecommunication Lease Metropol Center Merter 310 COMAB S.P.A. Lease Beybi Giz Plaza Maslak 300 OneWorld Consulting Lease River Plaza Levent 286 H&M Lease Apa Giz Plaza Levent 285 Templeton Asset Management Lease Sun Plaza Maslak 260 Turesta Real Estate Investments Lease Harmancı Giz Plaza Levent 250 Toshiba Lease Polaris Plaza Maslak 250 Keller Williams Lease Ustyapı Plaza Besiktas 237 Doosan Power Systems Lease Nida Kule Goztepe Goztepe 225 Timken Lease Buyaka Umraniye 211 Celgene Turkiye Lease Buyaka Umraniye 211 Spring Near East Manufacture Lease Tekfen Tower Levent 200 Goldman Sachs International Lease Beybi Giz Plaza Maslak 200 Eczacıbaşı Baxter Lease Alparslan Business Center Merter 200 Lulu Group Lease Kanyon Levent 200 HB Reavis Lease 42 Maslak Maslak 190 Teleperformance - Metis Lease Nida Kule Goztepe Goztepe 190 Uniqlo Lease Park Maya Etiler 172 Disney Lease Akaret Sira Evleri Besiktas 170 ISMMMO Academy Lease Itower Bomonti 169 Selçuk Esenyel Law Lease Itower Bomonti 166 Cihan News Agency Lease Levent Life Residence Levent 165 Mobilike Lease Itower Bomonti 165 Gonagen Medical Device Lease Itower Bomonti 165 Archled Lighting Lease Itower Bomonti 155 Onti Construction Lease En Ofis Kavacik 150 Beyza Mobile Accessory Lease Itower Bomonti 127 Linset Textile Lease Itower Bomonti 127 Aydanoglu Informatics Lease Itower Bomonti 127 Forbo Movement System Lease Uniq İstanbul Maslak 120 Pozitif Live Lease Parlak Plaza Kucukbakkalkoy 120 Sogut Seramics Purchase Itower Bomonti 100 Seven Hill Lease

22 www.propin.com.tr SOURCE: PROPIN NEW NEW NEW

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