TORUNLAR GYO A.Ş. MALTEPE LANDS VALUATION REPORT PAMİR VE SOYUER GAYRİMENKUL DANIŞMANLIK A.Ş. 31 DECEMBER 2011 This Report titled “Maltepe Lands Valuation Report” has been prepared by DTZ Pamir & Soyuer, as requested by Torunlar Gayrimenkul Yatırım Ortaklığı A.Ş. DTZ Debenham Tie Leung International Property Advisers is exclusively represented in Turkey by Pamir ve Soyuer Gayrimenkul Danışmanlık A.Ş. (“DTZ Pamir & Soyuer”). The mailing address of DTZ Pamir & Soyuer is presented below: Hakkı Yeten Caddesi 15/7 Şişli - İstanbul 34349 Phone : +90 (212) 231 5530 Fax : +90 (212) 231 5820 E-mail : [email protected] Executives contacted for the purposes of this Report are: Prepared By Hazal Seher Özkan Bali, CMB Licensed Valuer Analyst, Advisory Services Reviewed By: Firuz Soyuer MBA, MRICS Managing Partner We do not guarantee the fulfillment of any estimates contained within this report, although they have been conscientiously prepared on the basis of our own research and information made available to us. The report may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without our prior written consent. TABLE OF CONTENTS I. EXECUTIVE SUMMARY ............................................................................................. 1 II. INTRODUCTION ........................................................................................................... 3 A. INSTRUCTION ........................................................................................................................................... 3 B. PURPOSE OF VALUATION ......................................................................................................................... 3 C. BASIS AND DEFINITION OF VALUATION ................................................................................................... 3 D. MARKET VALUE ...................................................................................................................................... 3 E. DEFINITION OF VALUE ............................................................................................................................. 3 1. Definitions .......................................................................................................................................... 3 2. Market Value ...................................................................................................................................... 3 F. ASSUMPTIONS AND SOURCES OF INFORMATION ...................................................................................... 5 G. HIGHEST AND BEST USE ASSESSMENT ..................................................................................................... 5 H. APPROACH & METHOD ............................................................................................................................ 6 I. DATE OF VALUATION............................................................................................................................... 6 J. CURRENCY RATES ................................................................................................................................... 6 III. TURKEY GENERAL INFORMATION .................................................................. 7 A. GENERAL OVERVIEW ............................................................................................................................... 7 B. DEMOGRAPHY ......................................................................................................................................... 7 C. ECONOMIC OVERVIEW ............................................................................................................................. 8 IV. İSTANBUL OVERVIEW ........................................................................................ 10 A. GENERAL OVERVIEW ............................................................................................................................. 10 B. POPULATION .......................................................................................................................................... 10 C. TRANSPORTATION .................................................................................................................................. 11 D. ECONOMY .............................................................................................................................................. 13 V. İSTANBUL RESIDENTIAL MARKET ..................................................................... 15 A. DEMAND ................................................................................................................................................ 15 B. SUPPLY .................................................................................................................................................. 16 C. MAJOR DEVELOPMENT AREAS AND RESIDENTIAL TRENDS ................................................................... 18 D. MALTEPE & RESIDENTIAL DEVELOPMENTS IN THE AREA ...................................................................... 19 E. COMPETITIVE DEVELOPMENTS IN THE SUBJECT AREA .......................................................................... 20 1. DAP Burgu Towers .......................................................................................................................... 20 2. DAP Royal Centre ............................................................................................................................ 20 3. Nish Adalar ...................................................................................................................................... 21 4. Dumankaya Ritim ............................................................................................................................. 22 5. Deluxia Dragos ................................................................................................................................ 23 VI. MALTEPE LANDS .................................................................................................. 25 A. LOCATION, ACCESS AND ENVIRONS ...................................................................................................... 25 B. GENERAL DESCRIPTION AND CURRENT USE OF THE PROPERTIES .......................................................... 27 C. LEGAL DESCRIPTION .............................................................................................................................. 29 1. Deed Registry Records ..................................................................................................................... 29 2. Encumbrance ................................................................................................................................... 30 3. Zoning .............................................................................................................................................. 31 VII. VALUATION ............................................................................................................ 32 A. RESIDENTIAL PARCELS (246, 247, 248, 253, 366, 367, 368, 369 AND 370) ............................................ 32 1. Sales Comparison Approach ............................................................................................................ 32 2. Income Capitalization Approach ..................................................................................................... 34 3. Land Value Conclusion .................................................................................................................... 36 B. SOCIAL AND CULTURAL FACILITIES PARCELS ( 371, 376 AND 377) ....................................................... 37 i VIII. TERMS AND CONDITIONS .................................................................................. 39 A. VALUATION TERMS AND CONDITIONS ................................................................................................... 39 B. TITLE ..................................................................................................................................................... 39 C. ENVIRONMENTAL MATTERS .................................................................................................................. 39 D. STATUTORY REQUIREMENTS AND PLANNING ........................................................................................ 39 E. INFORMATION ........................................................................................................................................ 40 F. LEGAL ISSUES ........................................................................................................................................ 40 G. DATE OF VALUATION AND CURRENT MARKET CONDITIONS ................................................................. 40 H. DISPOSAL RIGHTS .................................................................................................................................. 40 I. INFRASTRUCTURE .................................................................................................................................. 40 J. ROAD PROPOSALS .................................................................................................................................. 40 K. SURVEYS ................................................................................................................................................ 41 IX. REFERENCES & EXHIBITS