Turkish Yapi Kredi eyes sale of REIT stake

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ISTANBUL, May 16 (Reuters) - Turkey's Yapi Kredi Bank (YKBNK.IS: Quote, Profile, Research) is looking at selling its shares in Yapi Kredi Koray real estate investment trust (REIT) (YKGYO.IS: Quote, Profile, Research), it said on Friday, sending the property firm's stock up 22 percent.

Koray Group, a builder which is the other main shareholder in the REIT, is also considering selling its stake and Rothschild [ROT.UL] has been hired as an adviser, Yapi Kredi Koray REIT said in a statement. Yapi Kredi Bank holds 30.45 percent and Koray 25 percent.

Shares in Yapi Kredi Koray REIT were up 22.0 percent at 2.50 lira, hitting the upper trading limits in both the morning and afternoon sessions.

The stock had fallen 39 percent this year, faring even worse than a 31 percent decline on the index of real estate trusts .

Shares in Yapi Kredi Bank, which is owned by Turkish conglomerate Koc Holding (KCHOL.IS: Quote, Profile, Research) and Italy's Unicredit (CRDI.MI: Quote, Profile, Research), rose 2.7 percent, outperforming a flat banking index .

Yapi Kredi Koray said in a statement to Reuters the potential sale was part of Koc's strategy to move out of non-core businesses.

The conglomerate, which struck a deal to sell its supermarket chain Migros MIGRS.IS earlier this year, has said energy, finance, automotive and consumer durables are the businesses it is focusing on.