Dutch-based property investor Corio has firmly established itself as one of the leading foreign movers in Turkey's booming retail market with the acquisition in November of Bursa shopping centre. The deal was Corio's eighth acquisition in Turkey this year.
Dutch-based property investor Corio has firmly established itself as one of the leading foreign movers in Turkey's booming retail market with the acquisition in November of Bursa shopping centre. The deal was Corio's eighth acquisition in Turkey this year.
Bursa's 75,000 m2 of gross lettable area brings the company's total current and future retail space close to 300,000 m2. The centre will be anchored by a 24,000 m2 Ikea store and will include a 8,500 m2 hypermarket and a 6,000 m2 DIY store. The two-phase development is scheduled for completion in 2010 after which it will be acquired on a turnkey basis and managed by Corio in-house.
Based in the Netherlands, Corio has a portfolio valued at approximately EUR 6 bn. While the company's initial investment target in Turkey was set at $ 500 mln (EUR 336.5 mln), it could rise as high as EUR 674 mln. Corio's first acquisition in Turkey was the EUR 128 mln purchase of a 46.92%-interest in the IPO of the company which owns the Akmerkez shopping centre in Istanbul. Since then Corio has made a substantial push beyond the country's largest city. In December, the Ada shopping centre is expected to open in Adapazari, a city of almost 300,000 inhabitants in the northwest of Turkey. Acquired in March for approximately EUR 43.7 mln, the shopping centre, with 25,000 m2 gross lettable area, will be the first in the region.
About 80% of Corio's portfolio comprises retail properties. The company has confirmed it has hired Jones Lang Lasalle as its adviser to sell off its office and industrial holdings to focus on the retail sector.
Earlier this month, Redevco, another Dutch-based retail property company, announced it has added Turkey to its investment network. Speaking at a press conference in Istanbul to introduce Redevco Turkey, Jaap Gillis, chief operations officer of Redevco Europe, said the company plans an initial investment of more than EUR 1 bn in the country.
Patrick van Dooyeweert, managing director of Redevco Turkey, said the six projects will provide more than 175,000 m2 of lettable space and create jobs for 4,000 people. Redevco Turkey will manage the properties built or acquired in Ankara and Erzurum. Van Dooyeweert said Redevco planned to expand in the major Turkish cities and six projects were already in the design and development stage. While the focus would be on retail property, Redevco's scope includes offices and logistic centres.
