(Bloomberg) -- Qatar Investment Authority and Turkish billionaire Ferit Sahenk’s Dogus Holding AS sold their minority stake in a high-end Istanbul shopping mall to a local property developer for about $500 million, according to people familiar with the matter. 

The joint venture —  Dogus Turizm Saglik Yatirimlari AS — sold its entire 42% stake in the shopping center to Istanbul’s Orjin Group, the people said, asking not to be identified because the financial details of the transaction is confidential.

The deal has been approved by the Competition Authority and values the IstinyePark mall at $1.2 billion, the people said. Orjin already owned a 58% stake, and the deal will see it take full control of the mall on the European side of Istanbul, which is home to a string of luxury brands, including Gucci, Louis Vuitton and Dolce & Gabbana.

Orjin founders Zafer Yildirim and Zafer Kursun had sought to turn the asset into a real estate investment trust and list it, people said. The QIA-Dogus venture didn’t agree to this proposal and ultimately decided to sell its holding, they said.

The QIA had invested in the mall in 2020 at a time when Dogus was seeking cash to back up a $2.7 billion restructuring plan with lenders. The wealth fund owned 70% of the Dogus Turizm venture, with the remainder held by Sahenk family.

QIA, Orjin and Dogus Holding all declined to comment.

The deal comes at a time when Turkey is seeking to draw international investors amid rampant inflation and steep declines in the lira. Officials have abandoned an unorthodox growth-at-all costs policy in a bid trying to win back investor confidence. 

Foreign direct investments have been on the wane since peaking at $22 billion in 2007, according to data from Istanbul-based International Investors Association. Flows dropped by a fifth in 2023 to $10.6 billion.

The QIA has several investments in Turkey — including QNB Finansbank AS, a stake in online retailer Trendyol, as well as in Insider, which is a startup that helps predict consumer behavior using AI.

--With assistance from Nicolas Parasie.

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